Mankind Pharma Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹2,275.50−₹72.10 (−3.07%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Mankind Pharma Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mankind Pharma Limited develops, manufactures, and markets pharmaceutical formulations and consumer healthcare products in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees20,451

Annual revenue₹14,278 Cr

How does it make money?

Turns over ₹14,278 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 20,451 employees supports ₹69.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin27.2%

Net margin13.4%

Revenue / employee₹69.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

CIPLA LTDP/E 31.8x · ROE 9.8%

DIVI S LABORATORIES LTDP/E 83.0x · ROE 17.5%

What is its competitive advantage?Little sign of one

Returns on capital of 13.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE13.7%

ROE11.7%

Peer median ROE14.5%

What is the outlook?

17 analysts covering the stock expect revenue to grow about 11.6% and earnings to grow about 23.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.6%

Est. earnings growth+23.1%

Analysts17

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +63% while net margin moved -9% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+63%

Margin effect-9%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 46.0x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 52.2x
✗ P/B of 5.76x is a steep premium to book

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

32/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

46.0x

3Y Median

52.2x

40 monthly readings · mean 54.0x · range 40.8x–73.9x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 3y median of 52.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 38% above the peer median of 33.3x.

vs. its own history

Fair

52.2x median over 40 months · -12%

vs. sector peers

Expensive

33.3x median of 4 peers · +38%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

46.0x

P/B

5.76x

EV/EBITDA

25.8x

PEG

3.23

Dividend Yield

0.09%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 23.0% to 27.2% over 3 years.
Cash generation is improving
Free cash flow is up 143% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 3605% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 17.2% to 11.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.8% to 13.7% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 200% against revenue growth of 63% — customers are taking longer to pay.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 3605% over 3 years, from ₹170 Cr to ₹6,312 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 200% against revenue up 63% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 7.0x to 4.7x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 23.0% to 27.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2,384 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 200% against revenue up 63%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 38% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 17.2% to 11.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.7% CAGR
Latest reported year was 12.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 25%✓ 27.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹2,384 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 13.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹93,988 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

46.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.76x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹49.42

Profitable

Profitable on a per-share basis

ROE

11.7%

Moderate

Moderate capital efficiency

ROCE

13.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

12.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

29.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.09%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹2,384 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹2,275.5

P/E (Forward)

32.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

20.6%

Good

Healthy core-business profitability

Net Margin

13.9%

Good

Strong bottom-line conversion

Current Ratio

1.07

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2431.8 / 2391.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8,749 Cr	₹10,259 Cr	₹12,207 Cr	₹14,278 Cr	+17.7%
EBITDA	₹2,014 Cr	₹2,707 Cr	₹3,248 Cr	₹3,877 Cr	+24.4%
EBITDA Margin	23.0%	26.4%	26.6%	27.2%	—
PAT (Net Profit)	₹1,282 Cr	₹1,913 Cr	₹1,991 Cr	₹1,913 Cr	+14.3%
EPS	₹32	₹47.68	₹49.19	₹46.28	+13.1%
ROE	17.2%	20.4%	13.9%	11.7%	—
ROCE	21.8%	24.6%	13.3%	13.7%	—
Total Debt	₹170 Cr	₹207 Cr	₹8,511 Cr	₹6,312 Cr	+233.4%
Free Cash Flow	₹981 Cr	₹1,763 Cr	₹1,883 Cr	₹2,384 Cr	+34.4%

🟢 Revenue has grown at 17.7% a year over 3 years.

🟢 EBITDA has grown at 24.4% a year over 3 years.

🟢 EBITDA Margin has risen from 23.0% to 27.2% over 3 years (+4.1 pts).

🟢 PAT (Net Profit) has grown at 14.3% a year over 3 years.

🟢 EPS has grown at 13.1% a year over 3 years.

🔴 ROE has fallen from 17.2% to 11.7% over 3 years (-5.5 pts).

🔴 ROCE has fallen from 21.8% to 13.7% over 3 years (-8.0 pts).

🔴 Total Debt has grown at 233.4% a year over 3 years.

🟢 Free Cash Flow has grown at 34.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹28,080 Cr

Total Liabilities

₹11,518 Cr

Total Debt

₹6,312 Cr

Cash & Equivalents

₹392 Cr

Operating Cash Flow

₹3,121 Cr

Capex

-₹737 Cr

Shareholding (proxy)

Institutional Holding

18.7%

Insider Holding

75.4%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹2

Ex-Dividend Date

08 Aug 2025

Analyst Consensus

Recommendations

12 Buy · 3 Hold · 4 Sell

Target Price (Mean)

₹2,762.79

+21.4% vs CMP

Target Range

₹2,057 – ₹3,280

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

1 positive3 mixed2 general

Mankind Pharma Share Price

Upstox, 17 Oct

Buzzing Stocks: Tech Mahindra surges 6% after Q2 earnings; Mankind Pharma falls 2% on Belgium acquisition

Moneycontrol.com, 16 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Mankind Pharma Sees Sharp Open Interest Surge Amid Mixed Market Signals

MarketsMojo, 18 Oct

Mankind Pharma shares up 10% in just 4 sessions; Kotak upgrades the stock - Target, share price trend

TradingView, 22 SeptAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Mankind Pharma Share Price Falls 4.89% After Q1 Results

Univest, 31 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Pharma stocks to buy ahead of Q2 results: Acutaas Chemicals, Mankind Pharma, Ipca Labs - Max upside? Target price

Livemint, 08 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong13.4/20

🟢GrowthStrong15.8/20

🟡ProfitabilityModerate8.2/15

🔴ValuationDemanding5.3/15

🟢RiskLow7.5/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 13% a year17.7% CAGR
✓EBITDA margin holds above 25%27.2%
✓Free cash flow remains positive₹2,384 Cr
✓Debt / EBITDA stays below 2x1.6x
✓ROCE stays above 11%13.7%