Mankind Pharma stock rises 4% as Investec initiates with 'buy'

Mankind Pharma shares have risen 22 percent since the start of the year.

Shares of Mankind Pharma saw a sharp uptick after surging 4 percent to Rs 2,519 in early trade on September 20 after Investec initiated coverage with a 'buy' recommendation citing robust growth prospects for the pharma major.

With a buy call and price target of Rs 3,300, the brokerage implies an upside potential of 36 percent from the last close of Rs 2,426 on the National Stock Exchange (NSE). Mankind Pharma shares have risen 22 percent since the start of the year.

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The brokerage highlights Mankind's strong execution capabilities and robust brand equity align well with Bharat Serums and Vaccines' (BSV, a brand Mankind Pharma acquired) super-specialty strengths. They believe BSV's research and development expertise, along with its sourcing capabilities, creates a significant competitive moat, which will further Mankind's vision.

Investec also notes that Mankind's solid presence in India and extensive distribution network will drive a notable uptick in BSV's India sales, especially due to the complementary synergies between the two entities. Additionally, the underpenetrated IVF market presents a substantial growth opportunity, with Mankind-BSV poised to become a global leader.

The brokerage believes that the market is underestimating BSV's specialty business's long-term growth potential and strategic importance. This business will continue to be a key growth driver for Mankind Pharma.

In other news, the board of the company announced on September 18 that it will deliberate on raising capital through non-convertible debentures, commercial papers, or other forms of debt or equity securities.

At about 9:20 am, Mankind Pharma shares were trading at Rs 2,512, higher by 3.6 percent.

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