Buy Mankind Pharma; target of Rs 2910: Motilal Oswal

Motilal Oswal's research report on Mankind Pharma

Mankind Pharma (Mankind) delivered in-line revenue in 4QFY25; however, EBITDA/PAT came in 14%/12% below our estimates. Higher-than-expected spending on marketing and promotional activities affected the company’s 4Q performance. In the domestic formulation (DF) market, Mankind has been consistently focusing on increasing the chronic share in its portfolio and outperforming the industry. The company outperformed the industry in chronic therapies by 230bp YoY in 4Q. Mankind undertook a review of its BSV portfolio review after acquisition. It also tried to implement measures to integrate with Mankind offerings. This process affected the BSV business to some extent. Having said this, it is now well positioned to take the portfolio on a superior growth path. We cut our earnings estimates by 12%/9% for FY26/FY27, factoring in a) slower growth in acute therapies at the industry level, b) higher financial leverage, and c) increased product development/marketing spend.

Outlook

We value Mankind at 44x 12M forward earnings to arrive at a price target of INR 2910.