Mankind Pharma shares jump 10% on robust Q1; up 77% against IPO price
Shares of Mankind Pharma, which recently made its debut on stock exchanges, rallied nearly 10% on Thursday after the Delhi-based drug maker reported robust earnings in June quarter on the back of strong domestic sales. The share price of the country's fourth largest pharmaceutical company has risen nearly 77% against its initial public offering (IPO) price of ₹1,080 per share.
Reacting to Q1 numbers, Mankind Pharma shares opened sharply higher at ₹1,890, up 8.7% against the previous closing price of ₹1,739.20 on the BSE. During the session so far, the pharma heavyweight gained 9.8% to hit an intraday high of ₹1,910, while the market capitalisation climbed to ₹75,166 crore. The counter witnessed spurt in volume trade as 0.43 lakh shares transferred hands compared to two-week average of 0.19 lakh stocks.
The share price of Mankind Pharma has jumped 54% from its all-time low of ₹1,240.75 touched on May 22, 2023, while it is down 2% from its 52-week high of ₹1,950 achieved on July 26, 2023. The homegrown company that sells condom brand Manforce and pregnancy test kit Prega News made its debut on stock exchanges on May 9 after raising ₹4,326 crore in the country’s biggest IPO so far this year. The stock has gained 10.4% in the last one month and 1.5% in a week.
For June quarter of FY24, the Rajeev Juneja-led company reported a 66% growth in net profit at ₹494 crore as compared to ₹298 crore in the corresponding quarter of FY23. Sequentially, the profit rose 68% from ₹294 crore in Q4FY23.
The revenue from operations rose 18% to ₹2,579 crore in Q1FY24 from ₹2,180 crore in the year-ago period. On quarter-on-quarter, the sales jumped 26% from 2,053 crore in March quarter of FY23. The company generated nearly 94% of its revenue (₹2,419 corre) from domestic market, which grew 14% YoY, while the remaining from consumer healthcare and exports.
On the operating front, EBITDA stood at ₹660 crore, up 43% from ₹460 crore in Q1FY23 and 57% from ₹419 crore in Q4FY23. The EBITDA margin improved to 25.60% as compared to 21.10% in June quarter of the previous fiscal and 20.40% in March quarter of FY23.
Rajeev Juneja, Vice Chairman & Managing Director, says, “We have started the year on a healthy note, with strong double digit growth in sales and profitability. The pharma segment outperformed the IPM by 1.5X led by volume led growth and highest ever chronic share. Our consumer healthcare segment maintained dominant brand leadership in respective categories. We have also seen positive results of our prior initiatives to improve profitability, with EBITDA growing 43% YoY.”
“Our market disruptive “DMF Quality Products” campaign has seen an outstanding response and we are rapidly expanding our product offerings in this important initiative. Our strategic initiatives across the businesses are delivering positive results and we are hopeful that we will continue to outperform industry growth, going ahead,” he says.
Formed in 1991, Mankind Pharma is one of the largest pharmaceutical company in India, which focuses on the domestic market with its pan India presence. The company, which manufactures emergency contraceptive brand Unwanted-72, Gas-O-Fast ayurvedic antacids, and acne-treating medicine AcneStar, is a net debt-free company, which generated profit after tax (PAT) and revenue of ₹1,310 crore and ₹8,749 crore, respectively in FY23. It has 25 manufacturing facilities in India manufacturing a wide range of dosage forms, including tablets, capsules, syrups, vials, ampoules, blow fill seal, soft and hard gels, eye drops, creams, contraceptives and other over-the-counter products.
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