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Mankind Pharma Hits New Highs, Shares Jump 11% in 3 Days After Q4 Results Beat Estimates

The board has also approved the incorporation of the subsidiary Mankind Consumer Products.

Shares of Mankind Pharma rose 8% in intraday trade on Friday to hit a new high of Rs 1,509 on the BSE. As a result, shares of the pharmaceutical company – popular for its Manforce brand of condoms and Prega News pregnancy test kits – surpassed the previous high of Rs 1,439 hit on May 12, 2023.

Mankind Pharma debuts on the stock market on May 9, 2023. The stock is currently offered at a 40% premium to its issue price of Rs 1,080. Trading volumes on the counter jumped more than fourfold today. A total of 1.3 million shares changed hands on the NSE and BSE as of 12:54 pm. In contrast, the S&P BSE Sensex gained 0.23% to 62,575.

Over the past three days, the company reported a better-than-expected March consolidated profit after tax (PAT) of Rs 294 crore, up 52% ​​year-on-year, and shares surged 11% for the quarter (Q4FY23), buoyed by strong sales. Operating income rose 18.9% year-on-year to Rs 2,053 crore from Rs 1,726 crore a year earlier.

Mankind Pharma said its domestic business continued to outperform the Indian Pharmaceutical Market (IPM) in FY23, driven by growth in the chronic disease segment, which increased its share to 34% from 33% in FY22.

The consumer healthcare business maintained double-digit growth and dominated its category. Management said the company is focused on increasing prescription value in existing Class II-IV and rural markets and increasing penetration in metropolitan areas through a higher long-term presence.

Based on 30 times (unchanged) FY25 earnings, BNP Paribas India has maintained its “buy” rating on the stock with a revised target price of Rs 1,520 (previously Rs 1,500).

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