Motilal Oswal Recommends Buying Mankind Pharma, Targets Rs 2640
Mankind Pharma Witnessing Healthy Revival in Domestic Formulation Business
Mankind Pharma's domestic formulation (DF) business is experiencing a significant resurgence, with a year-over-year (YoY) growth of 11.5% in March 2026, outpacing IPM's growth of 10.6% by a margin of 1.1 percentage points. This broad-based recovery in DF is primarily driven by the growth in chronic therapies, with cardiac therapies witnessing an increase of approximately 20% and anti-diabetic therapies growing by around 12.6% YoY. This improvement indicates enhanced execution capabilities and stability within the field force following restructuring efforts.
Valuation and Recommendation
Motilal Oswal's research report values Mankind Pharma at approximately 35 times its 12-month forward earnings, reflecting the company's improving growth prospects, strong domestic franchise execution, and synergy realization from acquisitions. This valuation is a testament to the company's potential for future growth and stability. As a result, Motilal Oswal maintains a 'BUY' recommendation for the company, with a target price of INR2,640.
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| Company | Mar'26 Growth (YoY) | IPM Growth (YoY) | Margin of Outperformance |
|---|---|---|---|
| Mankind Pharma | 11.5% | 10.6% | 1.1 percentage points |
Investor Takeaway
Investors should consider buying Mankind Pharma due to its improving growth visibility and strong domestic franchise execution.
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