Mankind Pharma is working out an IPO that will begin offering on the 25th.th Closed on April 27thth April 2023 Part 4th India’s largest pharmaceutical company. The company has a strong presence in the Indian pharmaceutical market and has consistently grown revenue and profits over the years. Should I invest in Mankind Pharma’s IPO? This article provides details of the Mankind Pharma IPO, IPO date, financials and review.
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About Mankind Pharma Limited
Mankind Pharma Limited is the fourth largest pharmaceutical company by domestic sales of MAT in December 2022 and the third largest pharmaceutical company by sales volume.
The company develops, manufactures and markets a diverse range of pharmaceutical formulations across a variety of acute and chronic therapeutic areas, as well as consumer healthcare products.
Mankind Pharma Limited’s income from its operations in India contributed 97.60% of its total income from operations in fiscal year 2022. This is his one of the best among his peers identified by IQVIA.
The company is growing primarily organically and is the youngest of India’s top five pharma companies in terms of domestic sales in 2022.
Mankind Pharma Limited operates at the intersection of India’s pharmaceutical formulation and consumer healthcare sectors with the aim of providing quality products at affordable prices.
The company has a track record of building and expanding its brands in-house, with 36 brands achieving over Rs 500 crore each in its pharmaceutical business. Domestic sales of MAT in December 2022 are 0 billion.
Mankind Pharma Limited has one of the largest distribution networks of healthcare professionals in the Indian pharmaceutical market, with over 80% of Indian physicians prescribing MAT in December 2022.
The company’s brands have consistently managed to generate the highest prescription drug share in the Indian pharmaceutical market over the financial years 2018-2022.
Mankind Pharma Limited invests heavily in research and development to develop new and improved products that help address unmet medical needs.
The company is committed to providing affordable and accessible healthcare solutions to people around the world.
Mankind Pharma IPO Issue Details
Click here for details of the IPO project.
| IPO start date | April 25, 2023 |
| IPO closing date | April 27, 2023 |
| IPO Listing Date | 08-5-23 |
| Kind of problem | Book Build Issue IPO |
| face value | Rs 1 per share |
| IPO price range | Rs 1026 to Rs 1080 per share |
| lot size | 13 shares |
| Minimum order quantity | 13 shares |
| list at | BSE and NSE |
| Total Issue Size (Full OFS) | INR 432.636 billion |
| QIB Shares Offered | 50% or more of the offer |
| Offer of NII/HNI shares | 15% or less of the offer |
| Retail Stock Offered | 35% or less of the offer |
Mankind Pharma IPO – Company Financials
| Fiscal year end/end (Amt in Crores) | ||||
| detail | 2020 | 21st year | 22nd year | Nine months ending December 23rd |
|---|---|---|---|---|
| Total assets | 5,073.3 | 6,372.6 | 9,147.7 | 9,273.8 |
| Earnings | 5,975.7 | 6,385.4 | 7,977.6 | 6,777.8 |
| Profit after tax | 1,056.2 | 1,293.0 | 1,453.0 | 1,016.0 |
| Profit % | 17.67% | 20.25% | 18.21% | 14.99% |
Mankind Pharma IPO Valuation
Its IPO price range is Rs 1,026 to Rs 1,080.
Considering last year’s FY22 EPS was Rs 35.78, the P/E ratio is 30x.
Considering the weighted average EPS of Rs 32.71 over the last 3 years, the PER is 33x.
Annualized EPS for the nine months ending December 2022 still yields a P/E of 33x.
Publicly traded companies such as Sun Pharma trade at 72x P/E (highest) and Zydus Life Science trades at 11x P/E (lowest), with an industry average P/E of 40x. So the IPO price range at 30x to 33x P/E is a reasonable price.
Positive Factors for Investing in Mankind Pharma’s IPO
Here are five positive factors that make Mankind Pharma Limited an attractive investment opportunity.
Strong market position: Mankind Pharma is India’s fourth largest pharmaceutical company by domestic revenue and revenue from operations in India contributed 97.60% of total revenue from operations in FY2022. The company has an established presence in the Indian market and an extensive distribution network could help it maintain its position in the market.
Focus on affordability: Mankind Pharma’s focus on providing quality products at affordable prices has been a key factor in its success. The company’s brands have consistently delivered his £500m+ domestic sales and has a proven track record of building and expanding brands in-house.
Diverse Portfolio: The company’s diversified portfolio of pharmaceutical formulations across various acute and chronic therapeutic areas and several consumer healthcare products may provide a cushion against downturns in certain therapeutic areas.
Strong financials: Mankind Pharma has shown significant revenue and profit growth over the years. The company’s return on net worth (RoNW) for his fiscal year 2022 was 23.29% of his, demonstrating the efficient use of shareholders’ funds.
Youngest among large peers: Mankind Pharma is the youngest of India’s top five pharma companies in terms of domestic sales in 2022. This suggests that the company has room to grow and gain market share, which could lead to higher returns for investors.
Strong R&D Capability: Mankind Pharma has a dedicated research and development team and invests heavily in research and development to develop new drugs and formulations. This will allow the company to remain competitive in the market and create new revenue streams.
Risks or downsides to investing in the Mankind Pharma IPO
Here are some potential negative factors to consider before investing in Mankind Pharma.
High reliance on domestic market: Mankind Pharma is primarily focused on the domestic market, with over 97% of its revenue coming from its operations in India. This could limit the company’s growth potential if the Indian market experiences experiences, challenges or if the company faces stiff competition from other domestic players.
Regulatory risk: Like all pharmaceutical companies, Mankind Pharma has regulatory approvals for its products. Delays or denials by regulatory bodies can result in significant delays in product launches and revenue generation.
Fierce Competition: The Indian pharmaceutical market is highly competitive, with several established players and new entrants. Mankind Pharma competes with large companies such as Sun Pharmaceuticals, Cipla and Alkem Laboratories, which could affect market share and revenue growth.
Limited international presence: Mankind Pharma has recently expanded into international markets, but still has a limited presence compared to some of its peers. This may limit our ability to diversify our revenue streams and increase our exposure to global opportunities.
Higher Debt Levels: Mankind Pharma had a debt-to-equity ratio of 1.03 as of March 2022, higher than some of its peers. Debt can be used to fund growth opportunities, but higher debt levels also increase the company’s financial risk and interest expense.
Depends on a limited number of products: Mankind Pharma’s revenues are concentrated in a limited number of products, which may make it vulnerable to product-specific risks.Adverse regulatory action, manufacturing issues, or other product-related issues can have a significant impact on a company’s revenue and profitability
Investors can read the full risk factor from the company’s RHP.
What is Mankind Pharma IPO GMP today?
Mankind Pharma IPO GMP shares are available on the gray market today at a premium of Rs 90 per share, according to market observers.
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Is Mankind Pharma’s IPO a good or bad investment?
In conclusion, there are pros and cons to investing in Mankind Pharma.
Positive factors include a unique product portfolio, a strong domestic market position, increased revenue and profits, an established brand presence and an extensive distribution network. Reasonable IPO price.
However, there are some negative factors such as high reliance on the domestic market, regulatory risks, limited international presence and intense competition.
Risky investors can invest in this IPO with a medium- to long-term view.
sauce: Mankind Pharma IPO Review is based on RHP
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Suresh KP is the founder of Myinvestmentideas. He is his NISM Certified – Investment Advisor and NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years.
