iifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Mankind Pharma: Focus on outperformance & improving quality

21 Mar 2024 , 05:48 PM

Recommendation: Buy; Target Price: Rs 2140


Analysts of IIFL Securities hosted Mankind’s senior mgmt team (Rajeev Juneja, Arjun Juneja, Ashutosh Dhawan) for investor meetings in London. Mgmt reiterated its consistent volume-led and chronic-led outperformance in the India Pharma market by 30-50% and focus to move up the value chain by expanding presence in metro/tier-1 towns, by further increasing its covered market (CVM) presence, and by pursuing M&A opportunities in the Chronic/CHL segment. With efforts to improve chronic revenue share to 40% (from 34% currently) and expand company’s CVM presence by 500bps (from 68% currently) over the next 3-4 years, analysts of IIFL Securities expect Mankind to deliver Revenue/Ebitda/EPS Cagr of 13/21/24% over FY23-26. Continued ramp-up and strong execution in chronic segment will drive consistent margin expansion and analysts of IIFL Securities believe Ebitda margins can improve to 30% over the next 5-6 years vs 25% in FY24. 

Targeting to increase chronic revenue share to 40% in 3-4 years vs 34% currently: 

Mankind’s chronic revenue has clocked 17% Cagr over FY20-H1FY24 vs IPM chronic market growth of 12% Cagr. With 3,500 reps and 8-10 super-specialty divisions added for the chronic portfolio in metro markets over the past 3 years, mgmt expects to continue outperforming chronic market growth by 1.4-1.5x over the next few years. Mankind’s CVM presence has increased from 62% to 68% over FY20-23 and it is expected to further expand by 500bps over the next 3-4 years, led by ramp-up in chronic portfolio in metro markets. 

Analysts of IIFL Securities expect Mankind’s India sales to clock 12.5% Cagr over FY23- 26, driven by 8-10% growth in its acute portfolio and 18-20% growth in its chronic portfolio. In order to further improve quality perception, Mankind will further expand its DMF-API based portfolio from 130 product SKUs currently to more than 200 SKUs over the next 9-12 months (vs overall India portfolio of 1,100 SKUs). Although DMF-API-based products have 300bps lower GMs, these products allow Mankind to differentiate vs peers and gain access to the super-specialist doctor channel. 

Chronic productivity improvement will drive consistent margin expansion of 100bps pa, given Mankind’s newer super-specialty chronic divisions from Mumbai are operating with PCPM of only Rs3-4 lakhs pm vs Rs8-10 lakhs pm for its mass-specialty divisions in Delhi. With the fieldforce expansion in the chronic business largely over, analyst of IIFL Securities expect Mankind’s overall PCPM to improve from Rs6 lakhs pm in FY23 to Rs8 lakhs in FY27.

Related Tags

  • Mankind Pharma
sidebar mobile


Read More
Knowledge Centerplus

Logo IIFL Customer Care Number
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

Knowledge Centerplus

Follow us on


2024, IIFL Securities Ltd. All Rights Reserved

  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.


Get better recommendations & make better investments

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp