MANKIND - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 3.7

📊 Fundamental Analysis

Mankind Pharma is a well-known player in the healthcare space, but its current valuation and growth metrics suggest caution for long-term investors seeking value.

Metric Value Implication

Market Cap ₹1,05,454 Cr. Large-cap; strong brand and scale

Stock P/E 60.6 Significantly overvalued vs. Industry PE of 34.0

PEG Ratio 7.33 Extremely high — suggests price far exceeds growth expectations

ROE / ROCE 14.7% / 16.0% Solid profitability and capital efficiency

Dividend Yield 0.00% No dividend — purely a growth play

Debt-to-Equity 0.59 Moderate leverage — manageable

EPS ₹48.3 Strong earnings, but not enough to justify current valuation

Profit Growth (QoQ) -9.86% Recent dip — needs monitoring

📈 Technical & Trend Analysis

Current Price: ₹2,555

DMA 50 / DMA 200: ₹2,490 / ₹2,446 — trading above both; bullish undertone

RSI: 53.0 — neutral zone

MACD: +47.6 — bullish momentum

Volume: Slightly below average — stable interest

⚖️ Is It a Good Long-Term Investment?

Moderately attractive, but expensive. Mankind Pharma has strong fundamentals and brand equity, but the P/E of 60.6 and PEG of 7.33 indicate that the stock is priced for perfection. Unless earnings growth accelerates meaningfully, long-term returns may be muted from current levels.

🎯 Ideal Entry Price Zone

Buy Zone: ₹2,350–₹2,450

Near 200 DMA and support zone

Offers better margin of safety

Wait for PEG to drop below 3.5 or P/E to normalize

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 2–3 years, with quarterly monitoring of earnings growth

Exit Strategy

Partial Exit near ₹2,950–₹3,050 if valuation remains stretched

Full Exit if PEG stays above 6.0 and ROE drops below 12%

Reassess if profit growth continues to decline or sector multiples compress

Would you like a comparison with peers like Cipla, Sun Pharma, or Dr. Reddy’s to evaluate relative valuation and growth potential?

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