Shares of Mankind Pharma slipped 4 percent to Rs 2,606, snapping its two-day gaining streak on the bourses on January 21 after Macquarie downgraded Mankind Pharma to "Underperform" with a target price of Rs 2,150, reflecting a 7 percent downside from the previous close.
The international brokerage said that domestic formulations business remains weak, driven by slower growth in acute therapies, which contribute approximately 65 percent of the company’s revenue. While the acquisition of Bharat Serum and Vaccine (BSV) adds to top-line growth, it negatively impacts bottom-line performance.
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Additionally, export markets appear to be reaching their peak. Consequently, Macquarie has lowered its FY25/26/27 earnings estimates by 17 percent, 24 percent, and 17 percent, respectively, due to earnings dilution stemming from the BSV acquisition.
Mankind Pharma delivered a strong Q2, with profit surpassing expectations, fueled by robust demand for its chronic illness medications targeting diabetes and cardiovascular conditions. The company, also known for popular brands like Manforce condoms and Prega News pregnancy kits, reported a consolidated net profit of Rs 653 crore for the quarter ended September 30, marking a solid 30 percent year-on-year growth. This figure comfortably outpaced analysts’ projections of Rs 590 crore, according to LSEG data.
Revenue from its chronic illness drugs rose to 35 percent of total revenue from 34 percent last year, propelling overall revenue to a 14 percent increase.
Last month, Mankind Pharma, India’s fourth-largest drugmaker by domestic sales, launched a qualified institutional placement (QIP) to raise Rs 3,000 crore, with the funds earmarked to partly finance its Rs 13,630-crore acquisition of Bharat Serums and Vaccines (BSV).
At about 10:45 am, shares of the company were trading at Rs 2,618, lower by 3.2 percent from the last close on the NSE. Mankind Pharma hasn't had a good start to the year as the stock has fallen over 9 percent since the start of 2025.
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