Mankind Pharma IPO, Should you subscribe or not

  The Indian IPO market is once again in focus as the IPO of Mankind Pharma, one of the country's biggest pharma companies, will open today. If we look at the issue size, then Mankind Pharma IPO is the biggest IPO of the current financial year in the Indian market. If we talk about the IPO Avalon Technologies which was listed in the last week, then it got a good response from the investors in the market and the investors suffered losses in the listing as well. We had told our website visitors before the listing of Avalon Technologies what to do in this stock and the listing of this IPO happened as per our expectation. Let us now understand that should I subscribe to Mankind Pharma IPO or not? First of all, let us understand what the business of Mankind Pharma Company is:

Mankind Pharma Business & Financial Performance:

The management of Mankind Pharma claims to be the fourth largest pharmaceutical company in the country. The company's product portfolio includes leading brands such as Manforce and Prega News. The main focus of the company is on the domestic pharma market. If we talk about the financial year 2021-22, then 97.20 percent of the company's income came from the domestic market and the company's profit was Rs 996.4 crore in the nine months of April - December 2022, while the company's income increased by 10%. 6697 crore.

Financial performance of Mankind Pharma:

Total Revenues: ( In Crores)

FY20 : 5865.20

FY21: 6214

FY22: 7781.60

From Above Data, It is clears that from Operations front company revenues are increasing yearly.

Profit after Tax: ( In Crores)

FY20: 1056.10

FY1293

FY1453

PAT has also been increasing

EBITDA Margin in FY22: 25%

Net Profit margin in FY22:18.6%

ROCE: 25.50%

P/E: 32%

Debt to equity:  0.11

Mankind Pharma IPO Details:

Mankind Pharma's IPO will be open to the public for three days from April 25 to April 27, 2023.

The QIB portion was opened for anchor investors only on 24 April 2023.

Mankind Pharma IPO OFS will be on offer for sale basis wherein the promoters and investors of the company will sell their stake through OFS and this IPO will not involve any fresh issue. Let us tell you in detail that in the offer for sale of Mankind Pharma's IPO, more than 4 crore shares will be sold, out of which Rajeev Juneja, Ramesh Juneja and Sheetal Arora are going to sell more than 1 crore shares through the offer for sale. And the rest of the shares are being sold by Cairnhill CGPE, Cairnhill CIPEF Bayes and Link Investment Trust.

Mankind Pharma IPO Price Band:

The price band of Mankind Pharma IPO has been kept at Rs 1026-1080 and the management of the company is expecting to get Rs 4326.35 crore through the IPO. The lot of Mankind Pharma IPO will be of 13 shares and the investor will have to pay Rs 14,040 to participate in this IPO. Means (1080 * 13) will have to invest .

Mankind Pharma IPO share allotment date and Mankind Pharma IPO listing date:

Investors who invest in this IPO will get the allotment of Mankind Pharma shares on May 3, 2023 and the listing of Mankind Pharma on BSE and NSE will take place on May 8, 2023.

 

Should you Subscribe Mankind Pharma IPO?

We strongly advise our website visitors or investors not to invest in such IPO's in which promoters and exiting investors of the company sell their shares to innocent investors. Before investing money in IPOs like Offer for Sale, investors should think with a cool head and do their research. Mankind Pharma has a wide product portfolio which includes famous brands like Man force, Prega News, Nestor Gas-O-Fast and Unwanted 72. Before investing in IPOs of any company, it is important to understand the valuations if the field force of the company is If you look at the data as on 31st December 2022, the company has 11,691 Medical Representatives & 3561 Field Managers, so the company's product distribution network is looking good. Company's Medical Representatives focus on Medical Practitioners, Distributors & Firms so that the company K's products can be sold more in the domestic market.

As per December 2021 for nine month data , mankind pharma revenues 96.79%  comes from Indian domestic  pharma market. FY20 & Fy222 Market share of company had also grown from 4.1% to 4.3%. Sales of the company also increased. Company focus has also shifted to chronic therapeutic areas and dpmestic sales from chronic therapeutic areas grew at CAGR nearly 14% in between FY 20 and MAT Dec FY22. If we will talk about R&D centre then mankind Pharma has team of 600 scientists in house.

Indian government has also focus on the growth of domestic Pharma sector if we will see the  size of Indian pharma industry  from FY12 to FY22  grown by 10.9% CAGR and expecting to grown by 11.5% in the coming financial years.

 Positive Key factors for  Mankind Pharma:

Good growth Potential for Indian pharma Industry to be continued in coming years

Indian Govt. focus on Domestic pharma company to increase the growth of this sector and Government is also offering Incentive schemes for domestic companies.

Mankind Pharma products comes in top 10 products of Indian companies.

Challenges for mankind Pharma:

Heavily focused on Domestic market nearly 66.79% revenues generated from Indian market only.

Political instability if comes in India then it can impact sale of Domestic companies

Out of Indian small revenues comes from only USA market which is also worry factor.

In the last few years, company was also in lime light for some inappropriate  internal transactions  i.e related –party transactions.

Recommendation on Mankind Pharma IPO:

Overall, We can say that, mankind Pharma company had performed well in the domestic market & Also a profit making company but challenges  are more for the this company. If Company will focus on International market in the coming years then Debit will also be increase on company balance sheet and it is not going to easy for company to compete at international market. If Investors wants to take some risk then they can apply for this IPO otherwise, Wait for IPO to list and then try to accumulate at lower price levels for long term point of view.  At the IPO Price of Rs 1026-1080rs , mankind Pharma IPO look bit expensive but If you will compare with the earnings of Torrent Pharma or some others then it looks at reasonable price. If Risky Traders or investors want to take a risk then appy for this IPO otherwise it is better to wait for listing of this IPO and wait for lower price to come after listing and then investors can make their mind for making investment into Mankind Pharma stock.