Buy Mankind Pharma; target of Rs 3140: Motilal Oswal

Motilal Oswal's research report on Mankind Pharma

Mankind Pharma (MANKIND) delivered better-than-expected 2QFY25 performance, fueled by a strong revival in growth of the consumer business and continued growth momentum in the exports business. MANKIND continues to deliver a better growth rate than the industry in the Rx-prescription business, supported by a niche portfolio and superior execution in chronic therapies. However, this was partly offset by the pricing impact on certain brands and festival/seasonality in acute therapies.We tweak our earnings estimates (-3.7%/3.0% for FY26/FY27) factoring in: a) addition of business from the BSV acquisition, b) sustained growth prospects in exports, and c) a scale-up in the consumer healthcare business. We value the stock at 45x 12M forward earnings to arrive at our TP of INR3,140.

Outlook

We tweak our earnings estimates (-3.7%/3.0% for FY26/FY27) factoring in: a) addition of business from the BSV acquisition, b) sustained growth prospects in exports, and c) a scale-up in the consumer healthcare business. We value the stock at 45x 12M forward earnings to arrive at our TP of INR3,140.