Mankind Pharma Q2 Results Review - Consumer Business Posts Sharp Recovery: Systematix

Systematix Research Report

Mankind Pharma Ltd.'s Q2 FY25 revenues (Rs 30,765 million, 13.6% YoY growth) were in-line with our estimates while Ebitda (Rs 8,501 million, 24.5% YoY Growth) and Net Income (Rs 6,535 million, 30.4% YoY) were above our/consensus estimates led by a sequential reduction in other expenses (down 8% QoQ).

Gross margins were flat QoQ. Revenue growth was led by Exports (up 57% YoY) and recovery in consumer business (20% YoY). Growth in India Branded prescription formulation business was slightly below estimates (~10% YoY) due to regulatory headwinds in certain key products in the acute segment.

Company has completed the acquisition of Bharat Serums and Vaccines (BSV), which should be integrated from Q3 FY25. We have incorporated BSV into our estimates and have rolled over our price target to September FY27E EPS. We maintain Hold on Mankind Pharma with a target price of Rs 2,565 based on 35 times PE multiple.

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