Mankind Pharma slips 5.5% as I-T dept searches Delhi office

Mankind Pharma took a hit on May 11 after making an impressive market debut two days earlier.

Mankind Pharma shares dropped 5.5 percent in the morning trade on May 11 on reports of income tax department IT department searching the company's Delhi office.

The searc, reported by CNBC-TV18, comes barely two days after the company made an impressive market debut. On May 9, Mankind Pharma listed on the exchanges with a 20 premium at Rs 1,300 over the IPO price of Rs 1,080. It pharma firm's initial public offering (IPO), the first big one of 2023, was subscribed over 15.32 times.

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Earlier, global brokerage firm Macquarie Research initiated coverage on the company and gave it an "outperform" rating with a target price of Rs 1,400 a share, indicating a potential upside of 30 percent from its issue price.

The company’s growth potential in the chronic segment could significantly expand its margins and net profit, it said, anticipating the margin to rise from 22 percent to 28 percent and net profit to more than double from Rs 1,300 crore in FY23 to Rs 2,800 crore in FY26.

Also Read: Mankind debuts with 'outperform' rating from Macquarie; stock gets a 30% uptick

Brokerage firm Antique also initiated coverage on the company with a "buy" rating and a target of Rs 1,584. Metro and Tier 1 cities are likely to be the new growth frontiers, it said, adding it expects India's business to grow at ~13 percent CAGR for the next three years.

“We like Mankind's India franchise given its diversified therapy mix and brand contributions,” it said.

At 10.19 am, the company's shares were trading 4.36 percent down on the National Stock Exchange at Rs 1,322.55, with the benchmark Nifty Pharma trading 1.06 percent down at 12,582.40 points.

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