Apr'25 View on Mankind Pharma Ltd

Mankind Pharma Limited develops, manufactures, and markets pharmaceutical formulations in various acute and chronic therapeutic areas and several consumer healthcare products. • Q3FY25: Subdued quarter for Mankind’s base business as well as BSV, on account of the ongoing corrective measures taken to boost sustainable growth. • Post partial impact of these initiatives in Q4FY25, we expect the company to revert to its robust growth trajectory from Q1FY26. • We incorporate BSV deal in our estimates and bake in 15% EPS CAGR over FY24-27E. • We expect earnings per share (EPS) to grow by 17.9% in FY26E and 30.0% in FY27E. • With the medium- to long-term prospects staying intact, we retain ADD. Q3FY25 Earnings update: Positives: • OTC business saw 30% yoy growth, led by healthy performance across key brands. • Adjusted EBITDA (+47% yoy, +5% qoq) beat our estimates by 2%. • Mankind expects synergy benefits of Rs50-100 cr from BSV, over next 12-24 month. • Mankind expects to expand BSV’s EBITDA margins every year from current levels of 26-28%, and aims to reach ~30% EBITDA margins in BSV over the next 2-3 years. Negatives: • BSV’s revenues are expected to remain flat yoy in FY25E.