Mankind Pharma shares crack 7% as investors book profit after listing day gains

Mankind Pharma shares, after a blockbuster listing on Tuesday, saw some profit booking on Wednesday as investors took some money off the table after strong gains in its initial trading session. The stock tanked about 7 per cent from its day's high after surging over 30 per cent on its maiden trading session.

Shares of Mankind Pharma hit an intraday high of Rs 1,431 on Wednesday before it declined sharply, close to 7 per cent, to Rs 1,334.50. However, the stock settled at Rs 1,424.05 on Tuesday, up 32 per cent from its issue price of Rs 1,080 and 10 per cent from its listing price of Rs 1,300.

After a stellar listing, analysts remained divided over the company with a few suggesting to hold it for a longer run, while some recommending to book profits and re-enter the counter on dips, once the initial euphoria is settled.

Mankind Pharma, the second-largest domestic pharma company in terms of volume, appears to be well positioned to double its PAT by FY26E, said the global brokerage firm Mankind Pharma, which initiated coverage on the stock even before its debut with an 'outperform' rating.

"We believe continued sales outperformance to the India market, focus on chronic therapies and improved salesforce productivity are growth drivers, it said. However, its target of Rs 1,400 was hit on the day of listing itself as the stock settled hit Rs 1,430.

Mankind Pharma seems to be a good long-term investment. The company has a strong growth pipeline, product portfolio, and distribution network, and is well-positioned in the domestic pharma market, said Krishna Raghavan- Founder at Unlistedkart.
"With a focus on R&D and expanding presence in chronic therapy, the company is poised for growth," he said.

The initial public offering (IPO) of Mankind Pharma was open for subscription between April 25-27 as the company raised more than Rs 4,326 crore by selling its shares in the price band of Rs 1,026-1,080. The issue was overall subscribed 15.32 times, thanks to robust bidding by qualified institutional bidders (QIBs).  

However, other analysts suggest to book the quick buck and exit the counter amid market's volatility. "We see limited upside from here, thus investors are recommended to book profit and later enter at lower price, if available," said Rajnath Yadav, Senior Analyst at Choice Broking.

Prathamesh Masdekar, Research Analyst at Stoxbox also advised investors to book profits on the first day. "Fundamentals of the company look good from a long-term perspective including domestic focus of the business, strong distribution network and good products at affordable prices, we would be comfortable for fresh entry at lower levels," he said.

Mankind Pharma India’s fourth largest pharmaceutical company whose more than 98 per cent business comes from India.  It has over 36 brands across the segments Including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, well-being and respiratory.

Incorporated in 1991, Mankind Pharma develops, manufactures, and markets pharmaceutical formulations across various acute and chronic therapeutic areas and several consumer healthcare products.

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