India's Mankind Pharma misses Q1 profit expectations on higher costs

Mankind Pharma

31/07/2024 11:27

BENGALURU, July 31 (Reuters) - India's Mankind Pharma  MNKI.NS  posted first-quarter profit below
expectations on Wednesday, as higher costs offset strong demand for its drugs. 
    The company, which makes Manforce condoms and Prega News pregnancy kits, said its consolidated net profit rose
10% to 5.36 billion rupees ($64 million) for the quarter ended June 30, missing analysts' average estimates of 5.77
billion rupees, as per LSEG data.
    Revenue from operations rose about 12% to 28.93 billion rupees, but expenses rose 15.5%. 
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JN0QS
        
    KEY CONTEXT 
    Mankind Pharma's June quarter profit was hurt by rising costs, mainly employee-related expenses, even as Indian
drugmakers have been benefiting from strong domestic demand for their specialty drugs. 
    The company, which makes anti-infectives and drugs for treating respiratory illnesses, also said that growth was
partially impacted due to a delay in the flu season. 
    
    PEER COMPARISON
    
                                                   Estimates (next 12            Analysts' sentiment         
                                                        months)                                              
                      RIC        PE     EV/EBI  Revenue     Profit        Mean      # of      Stock to       Div
                                        TDA     growth (%)  growth (%)    rating*   analysts  price          yield
                                                                                              target**       (%)
 Mankind Pharma        MNKI.NS   36.62   26.95    12.55        17.74      Buy             13      0.96       NULL
 Torrent               TORP.NS   46.87  25.91   12.81       25.39         Buy       26        1.08           0.92
 Pharmaceuticals                                                                                             
 Glenmark              GLEN.NS   28.27   15.22    14.90         NULL      Buy             11      1.27           0.18
 Pharmaceuticals                                                                                             
 Sun Pharmaceutical    SUN.NS    33.34   24.51    10.24        10.91      Buy             30      1.00           0.85
 Industries                                                                                                  
    * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
    ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    APRIL TO JUNE STOCK PERFORMANCE 
    -- All data from LSEG
    -- $1 = 83.7234 Indian rupees

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APRIL TO JUNE STOCK PERFORMANCE    https://tmsnrt.rs/3yh2nZA
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 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))