Mankind Pharma stock buy sell or hold after IPO Listing ?

Mankind Pharma's IPO was subscribed 15.32 times out of which 0.92 in retail category, 49.16 times in QIB & 3.80 times in the NII category. If understood, the response of retail investors was also not very good. Mankind Pharma IPO upper price was at 1080rs which was valued at price to earnings ratio of nearly 30 times of FY 22 earnings & with Market cap of 44,000rs crore. After this IPO, Promoters shareholding will be 78%.

Remember that Mankind Pharma's IPO was based on offer for sale. We had told on our website that Mankind Pharma's IPO is coming at higher valuations. The promoters of the company have not left much on the table for their shareholders after the listing. If we look at the gray market premium, then the premium of 100rs was received from 80rs. In such a situation, if Mankind Pharma's IPO gives slightly flat to positive or negative opening then the question will come in the mind of traders and investors that what should be done in Mankind Pharma's stock after IPO listing? Let us understand whether the stock of Mankind First should be sold or not?

Recommendation on Mankind Pharma stock after IPO lsiting ?

The listing of Mankind Pharma's IPO will depend a lot on the mood of the Indian Stock Market & World Stock Market as Mankind Pharma's IPO came on higher valuations as per our research and it would be wrong to expect bang-up returns. Adding a listing gain of 80s to 100rs in the upper price band of 1080s is not a big deal. Anyway, difference has been seen in the premium of gray market and listing gains of IPO many times. If the mood of the Indian stock market remains favorable then positive opening can be seen in Mankind Pharma, but the big question will be whether Mankind Pharma stock will be able to sustain the positive opening gains or not?

According to us, a good strategy would be to try to exit every price rise in Mankind Pharma stock. If long term investors want to invest in Mankind Pharma stock then they should wait for the correction. Traders and investors should not try to jump into IPOs post listing looking at the gray market premium. Pharma sector has not been the favorite sector of the traders for the last few months and if seen, the pharma sector has not given good returns to the investors after March 2020.

There is no doubt that the company's products have a good hold in the Indian domestic market, but any company's stock has a correct valuation, which is not being reflected in the IPO price of Mankind Pharma at this time. If Mankind Pharma stock sees profit booking of 10% to 15% in coming weeks and months, then probably Mankind Pharma stock will come at moderate valuations and at that time investors will see some upside. We believe that the company's products are in demand but the IPO price of 1080s is not impressive. The management of the company must have thought about the investors. If Mankind Pharma's IPO price 650rs and 700rs were also offered then long term investment could be thought of in this.

If someone has to invest in the pharma sector, then there are shares of some such companies which are still available at good valuations. Therefore, stock price of Mankind Pharma should be allowed to settle after IPO listing and then it should be considered for long term investment at good levels.