MANKIND - Investment Analysis: Buy Signal or Bull Trap?

Last Updated Time : 05 Nov 25, 7:43 am

Investment Rating: 3.5

📉 Mankind Pharma is a strong brand with solid revenue growth, but current valuations and weakening profitability suggest caution for long-term investors. Ideal entry zone: ₹2,250–₹2,350. If already held, consider a 2–3 year horizon with exit near ₹2,950–₹3,050 or if ROE/ROCE stagnate.

🔷 Positive

• 📊 ROCE of 15.0% and ROE of 13.9%: Indicates decent capital efficiency and return on equity.
• 📈 EPS of ₹45.1: Reflects solid earnings base.
• 📈 Quarterly PAT growth: ₹413 Cr. vs ₹382 Cr. shows resilience despite margin pressure.
• 📈 Strong volume surge: Daily volume nearly doubled compared to weekly average.
• 📈 Positive DII sentiment: DII holding increased by 0.41%

  The Economic Times

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⚠️ Limitation

• 📉 High P/E (54.8) vs Industry PE (33.1): Indicates overvaluation.
• 📉 PEG ratio of 6.52: Suggests expensive valuation relative to growth.
• 📉 MACD negative (−25.0) and RSI (35.8): Indicates bearish technical momentum.
• 📉 Dividend yield of 0.04%: Not appealing for income-focused investors.
• 📉 FII holding declined (−0.24%): Reflects cautious foreign sentiment

  The Economic Times

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🚫 Company Negative News

• 📉 Q4 FY25 net profit fell 10.7% YoY to ₹420.8 Cr. despite 27% revenue growth

  Goodreturns

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• 📉 Stock hit a day low of ₹2,373 amid price pressure and bearish trend signals

  MarketsMojo.com

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✅ Company Positive News

• 📈 Mankind Pharma is part of a curated list of healthcare stocks with 10–35% upside potential in 1 year

  The Economic Times

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• 📈 Revenue jumped 27% YoY in Q4 FY25, driven by strong domestic formulations and brand expansion

  Goodreturns

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🏭 Industry

• 💊 Operates in the pharmaceutical sector, benefiting from rising healthcare demand and chronic disease management.
• 📉 Industry PE of 33.1 suggests Mankind trades at a premium, requiring strong growth to justify valuation.

🧾 Conclusion

• 📌 Ideal entry zone: ₹2,250–₹2,350 based on technical support and valuation.
• ⏳ Holding period: 2–3 years to benefit from brand strength and domestic growth.
• 🚪 Exit strategy: Consider exit near ₹2,950–₹3,050 or if ROE/ROCE decline or valuation remains stretched.

Sources

The Economic Times

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