Mankind Pharma has one of the largest distribution networks of medical representatives in the Indian pharmaceutical market. Over 80% of doctors in India prescribed their formulations and has been ranked number 4th in terms of domestic sales during the Financial Year 2022.
As of December 31, 2022, the Company had a team of over 600 scientists and a dedicated in-house R&D center.
Strong brand: it has over 36 brands which includes including Manforce (Rx), Asthakind-DX, Monticope, Telmikind-H, Telmikind etc.
IPO details
F.V: INR 1 per share
Price band: INR 1026 - 1080 per share
Total Size: INR 4.3K Crs
Retail Quota: 50%
Financial
Revenue:
Fy 2022: 7,977 crs
Dec 2022 (9 months): 6,777 crs
PAT:
Fy2022: 1,452 Crs
Dec 2022 (9 months): 1,015 Crs
Networth
Fy22: 6,155 Crs
Dec 2022 (9 months): 7,145 Crs
Borrowing: Virtually debt free negligble borrowing.
As per the current IPO price. Company PE is around 32.5
MCAP: 43K Crs
ROE: 27%, ROCE: 26%
Object of the issue
Offer proceeds will be received by the selling shareholders not received by the company.
Pros
-Strong distribution network. Mankind has a pan-India marketing presence
-Mankind has one of the largest distribution networks of medical representatives in the Indian pharmaceutical market ("IPM") and over 80% of doctors in India prescribed its formulations.
- Domestic Sales grew at a compounded annual growth rate ("CAGR") of approximately 12%
-Fundamentally too sound. Although PAT is declined in 9MFY23 due to one-time provisioning for its recent takeovers.
-Business is active in a number of acute and chronic therapeutic fields, including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins/minerals/nutrients, and respiratory.
Cons
- Fully Priced IPO as per current IPO price. Compared to their PE peers as per below:
Cipla: 27.5
Sunpharma: 29
Dr.Reddy: 22
Torrent Pharma: 45
Alkem: 39
- The another challenge is around 72% reserved for retail and HNIs which also feel selling pressure in near term.
Conclusion
So per my view IPO is fully priced and it's just OFS because company will not get any proceeds. Only long term investors may subscribe to the issue. Listing gain is very limited or no listing gain.
Disclaimer: This is just my personal view and opinion. Others view can be different.
