This is the fourth straight day of gains for the stock.
Kotak Institutional Equities has upgraded its rating on Mankind Pharma to “buy” from its earlier rating of “add”, and also raised its price target to ₹3,000 from ₹2,885 earlier. This indicates an upside potential of 23% from current levels.
According to the brokerage, Mankind Pharma’s base domestic business is finally showing tangible signs of recovery after a prolonged restructuring impact.
Following the 12.7% secondary sales growth on an annual basis in the June quarter, there has been a further uptick in July and August with Mankind Pharma reporting 14.6% growth from last year, outpacing the Indian pharma market by 120 basis points, Kotak wrote in its note.
With field force stability and a step-up in research and development, new launches and volumes should also pick up for the company, the brokerage added.
Kotak Institutional Equities expects Mankind Pharma to report a robust 23% earnings per share (EPS) compound annual growth rate (CAGR) over financial year 2026-2029.
Mankind Pharma reported a positive set of earnings in the June quarter. The company’s profit increased 30% to ₹568 crore from ₹438 crore last year. Its revenue was up 13% to ₹4,031 crore from ₹3,570 crore in the year-ago period.The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased 25% to ₹1,057 crore from ₹847 crore, while its margins expanded to 26.2% from 23.7% in the year-ago period.
Of the 22 analysts who have coverage on Mankind Pharma, 14 have a “buy” rating, while four each have “hold” and “sell” ratings.
Shares of Mankind Pharma are off opening highs but are holding on to gains of 0.4% at ₹2,447.2. The stock is up 3% in the last one month, taking the year-to-date advance to 13%.
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