Mankind Pharma IPO Analysis – Understand the Company before invest

Mankind Pharma IPO Analysis, Mankind Pharma Company Insights, Mankind Pharma IPO Insights, Mankind Pharma Company Review
Mankind Pharma IPO Insights

Mankind Pharma Company Review

Mankind Pharma IPO Analysis – Mankind Pharma Limited was incorporated as ‘Mankind Pharma Private Limited’ in Delhi, India on July 3, 1991. On April 13, 2006, the company changed its name to “Mankind Pharma Limited”.  The registered and corporate office – ‘Mankind Pharma Limited’ address – is 208, Okhla Industrial Estate, Phase-III, New Delhi 110 020, Delhi, India; Tel: +91 11 4747 6600.

  • Mankind Pharma Limited is the fourth largest pharmaceutical company in terms of Domestic Sales in FY 2022 in India.
  • Its brand name “Mankind” is a well-recognized brand in India. Some other brands of the company are “Manforce”, “PregaNews”, and “GasOfast” which are also well recognized in Indian households.
  • The company manufactures and sells a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas.
  • Mankind Pharma is also engaged in several consumer healthcare products.
  • The company has one of the largest distribution networks in the IPM with 11,196 medical representatives and 3,195 field managers, as of March 31, 2022.
  • Mankind Pharma Limited was awarded the “Silver Award for Good Health Brand” in 2021 by The India Health & Wellness Awards and the Best of Bharat Award by Pride of India in 2022.
  • The company operates 23 manufacturing facilities across India.
Mankind Pharma IPO Analysis, Mankind Pharma Company Insights, Mankind Pharma IPO Insights, Mankind Pharma Company Review
Mankind Pharma IPO Analysis

Mankind Pharma IPO Analysis Products

Mankind Pharma Limited manufactures products that are well diversified across leading therapeutic and nutraceutical areas. The company is a market leader in a few products. The company captures 80% of the market of “PregaNews” in FY 2022. Nurokind brand is one of the best products in the vitamins segment that includes Nurokind LC, Nurokind Gold, and Nurokind Plus-RF which is used for treating chronic fatigue syndrome and vitamin deficiencies. Manforce is another leading brand in the pharma market in India.

  • Mankind Pharma Limited products can primarily be categorized as below:
  • Anti-infective
  • Cardiovascular
  • Gastrointestinal
  • Vitamins/minerals/nutrients
  • Respiratory
  • Anti-diabetic
  • Dermatology
  • Gynecology
  • Pain/analgesics
  • Neuro/CNS

Mankind Pharma Company Insights – Founders and Leadership team

  • Mr. Ramesh Juneja is the founder chairman and Whole-Time Director of the company. He has over 31 years of work experience in the pharmaceutical industry.
  • Mr. Rajeev Juneja is the promoter Vice Chairman and Managing Director of the company. He has over 29 years of experience in the pharmaceutical industry.
  • Mrs. Sheetal Arora is the promoter, Chief Executive Officer and Whole-time Director of the company. He has over 14 years of experience in the pharmaceutical industry.
  • Mr. Arjun Juneja is the Chief Operating Officer of the company. He is instrumental in the management, operations, and growth of the Company.

Mankind Pharma IPO Insights – Financial Snapshot

The company reported strong revenue from operations of INR 58,652.34 million, INR 62,144.31 million, and INR 77,815.55 million, respectively for the financial years 2020, 2021, and 2022. Mankind Pharma’s business mostly depends on domestic business which contributes 97% of the total revenue. Mankind Pharma Limited reported a profit of INR 10,561.48 million, INR 12,930.34 million, and INR 1 4,529.56 million for the financial years 2020, 2021, and 2022 respectively.

Domestic Sales of the company grew at a CAGR of approximately 16% from INR 60,647 million in FY 2020 to INR 82,198 million in FY 2022. Manforce brand had Domestic Sales of approximately INR4,511 while Prega News brand had Domestic Sales of approximately INR 1,529 million in 2022. 

Mankind Pharma Limited has been registering strong EPS over the years. The parameters such as the return on equity, ROCE, net cash flow, and profit margin are looking strong over the years.  Refer to the table below for all the details valuation parameters. Looking at the numbers below one can invest in the company’s IPO if the floor price is affordable according to the valuation.

All amounts in INR Million except percentages
(Year ended March 31)
Revenue from Operations58,652.34 62,144.3177,815.55
Total Income59,756.54 63,853.8079,775.84
Profit After Tax for the Year10,561.48 12,930.3414,529.56
PAT (%) of Total Revenue18.01% 20.81%18.67%
EBITDA20,038.00 16,597.8014,483.46
EBITDA (%) of Revenue from Operations25.75% 26.71%24.69%
Return on Equity31.75% 30.30%25.99%
Return on Capital Employed25.50% 30.41%35.86%
Net Debt / Equity0.8
Earnings Per Share-Diluted (in INR)25.72 31.5935.78
Net Cash from Operating Activities10,697.05 11,372.449,197.76

Mankind Pharma Limited Peers

Mankind Pharma is a leading player in the pharmaceutical market in India. Hence, the main competitors within India include leading pharmaceutical companies operating in similar therapeutic areas and product categories, such as Alkem Laboratories Limited, Abbott India Limited, Aristo Pharmaceuticals Private Limited, Cipta Limited, Eris Lifesciences Limited, Intas Pharmaceuticals Limited, Ipca Laboratories Limited, J. B. Chemicals & Pharmaceuticals Limited, Lupin Limited, etc.

The company also faces competition from multinational companies such as GlaxoSmithKline Pharmaceuticals Limited, AstraZeneca PLC, Boehringer Ingelheim, Janssen Pharmaceuticals, Merck & Co., Inc., Novartis AG, Pfizer Inc., Procter & Gamble Health Limited, Sanofi S.A. and Viatris Inc.

Do you invest in Mankind Pharma Stock?

If you are thinking to invest in Mankind Pharma Stock for long term, absolutely I would suggest yes. This company is one of the best in pharma industry.

  • Rising life expectancy, urbanization and affluence levels along with lifestyle changes associated with sedentary behavior, stress and poor diet increases the demand for over the counter nutrition supplements
  • The global formulation market is expected grow at a CAGR of 4.5-5% to reach US$ 1,600-1,650 billion or ₹ 120,000-123,750 billion by Financial Year 2027.
  • Mankind Pharma is in a sweat spot in terms of product portfolio and reach in India.
  • The threat of new entrant is low in case of pharma industry as it requires huge investment in research and development and long learning curve.
  • However, this industry is highly competitive and only a strong brand can compete successfully.
  • Mankind Pharma has already established itself as a brand in India.
  • I would invest in Mankind Pharma Stock during the IPO as well after the launch.

It is important to do your own due diligence on Mankind Pharma Company Insights before putting your hard earned money.

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