Mankind Pharma shares drop 3% post Q2

Shares of Mankind Pharma, the seller of condom brand Manforce and pregnancy test kit Prega News, dropped over 3% in intraday trade on Wednesday, in sync with the broader market. The shares of the homegrown pharma company were under stress despite decent financial performance in the September quarter of the current fiscal.

Early today, Mankind Pharma shares opened marginally lower at ₹1,734.35, extending losses for the third straight session. During the session so far, the pharma stock declined as much as 3.2% to hit an intraday low of ₹1,685 on the BSE.

At the time of reporting, Mankind Pharma shares were down 0.8% at ₹1,727, with a market capitalisation of ₹69,178 crore.

The shares of Mankind Pharma, which made its market debut in May this year, has risen over 21% in the last six months. The stock has lost 3% in a month, while it rose over 1% in a week.

At the current price level, Mankind Pharma shares trade 11.5% lower than its all-time high of ₹1,950 touched on July 26, 2023. The counter hit its lowest level of ₹1,240.75 on May 22, 2023.

The laregcap stock trades 60% higher than its initial public offering (IPO) price of ₹1,080 per share. 

In a post-market hour release on Tuesday, Mankind Pharma reported a 19.4% rise in second-quarter profit, driven by higher domestic sales and steady growth in the company's chronic drugs segment. The country's fourth-largest pharmaceutical company by domestic sales posted profit of ₹501.03 crore in Q2 FY24, as compared to ₹419.71 crore during the same period last year.

The revenue from operations jumped 11.6% to ₹2,708.10 crore, as against ₹2,425.84 crore in Q2 FY23. The domestic revenue was up 7% YoY at ₹2,529 crore, export revenue stood at ₹179 crore, registering a YoY growth of 159%. 

On the operational front, the EBITDA revenue grew 15% YoY to ₹686 crore, with a margin of 25%.

“We continue to report steady performance with Revenue/ EBITDA and PAT growing by 12% / 15% and 21% YoY respectively. While the pharma segment has grown at par with IPM (vs outperformance earlier) – due to delayed acute season, we expect to outperform IPM given strong chronic growth and uptick in season. Focus to increase our chronic share led to outperformance of 1.4x versus IPM Chronic growth in H1FY24,” says Rajeev Juneja, Vice Chairman & Managing Director, Mankind Pharma.

“The past strategic choices in various aspects of our business are showing success, and we are confident in our ability to consistently surpass the industry growth in future,” he adds.

Established in 1991, Mankind Pharma is one of the leading players in the domestic pharmaceuticals business and consumer healthcare sectors. In the consumer healthcare business, the company operates in the condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements and anti-acne preparations categories, among others, with several category-leading brands.

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