Mankind Pharma stock jumps 10% in four sessions after Kotak
Mankind Pharma shares rose over 2% on Tuesday, gaining for a fourth straight session, as Kotak Institutional Equities upgraded the stock to 'buy' and
Mankind Pharma shares climbed more than 2% in intraday trade on the BSE on Tuesday, 22 September, extending gains to a fourth consecutive session. The stock opened at ₹2,445.60 against a previous close of ₹2,429.85 and rose 2.1% to an intraday high of ₹2,481, defying a broader market decline that saw the Sensex fall about 0.50%.
At that high, the stock has gained 10.4% in just four trading sessions.
Kotak upgrades to 'buy' with new target
Kotak Institutional Equities has upgraded Mankind Pharma to a 'buy' rating from an 'add'. The brokerage also raised its target price for the stock to ₹3,000 from ₹2,885. Kotak cited signs of recovery in the company's core domestic business following a period of prolonged restructuring.
The firm expects new product launches and volumes to pick up. It linked this anticipated improvement to greater stability in the company's field force and a step-up in research and development spending.
Recent share price performance
The stock's recent surge adds to a strong medium-term performance. According to BSE data, Mankind Pharma's share price is up 14% year-to-date. This contrasts with a 12% fall in the Sensex over the same period.
Over the last six months, the stock has gained 23%. On a monthly scale, it is up nearly 3% so far in September, which positions it to end a two-month losing streak.
Quarterly financial results
The company's recent financial performance has provided a foundation for the positive sentiment. For the June quarter of FY27, Mankind Pharma reported a 12.9% growth in revenue to ₹4,031 crore. Net profit jumped 29.1% to ₹574 crore.
| Metric | Figure for June Quarter FY27 |
|---|---|
| Revenue | ₹4,031 crore |
| Revenue Growth | 12.9% |
| Net Profit | ₹574 crore |
| Net Profit Growth | 29.1% |
| EBITDA | ₹1,060 crore |
| EBITDA Growth | 24.7% |
| EBITDA Margin | 26.3% |
| Margin Expansion | 250 basis points |
Consolidation of subsidiary BSVL
In a separate corporate development, Mankind Pharma is moving to integrate its subsidiary Bharat Serums and Vaccines Limited (BSVL). The business of BSVL is proposed to be integrated with Mankind through a voluntary liquidation process for BSVL.
In an exchange filing on 26 August, Mankind said its board had approved an expeditious consolidation of BSVL's business. The board of BSVL, a material wholly-owned subsidiary, had earlier approved its own voluntary liquidation. Mankind Pharma holds 96% of BSVL directly, with the remaining 4% held by another wholly-owned subsidiary, Appian Properties Private Limited.
