India's Mankind Pharma tops Q2 profit view on higher demand for chronic drugs

Mankind Pharma

05/11/2024 11:36

Nov 5 (Reuters) - India's Mankind Pharma  MNKI.NS  reported a better-than-expected second-quarter
profit on Tuesday, driven by strong demand for its drugs to treat long-term illnesses, such as diabetes and
cardiovascular diseases. 
    The company, which also makes Manforce condoms and Prega News pregnancy kits, said its consolidated net
profit rose to 6.53 billion rupees ($77.7 million) for the quarter ended Sept. 30, a 30% climb from last year.
Analysts, on average, expected a profit of 5.90 billion rupees, as per data compiled by LSEG.
    Revenue contribution from its mainstay chronic illness drugs segment climbed to 35% from 34%, driving
total revenue 14% higher. 
    
    KEY CONTEXT
    Indian drugmakers, such as Mankind Pharma and peer Torrent Pharma  TORP.NS , continue to benefit from
steady domestic demand for their specialty drugs and those used to treat chronic illnesses.
    These companies see higher demand for anti-infective medicines during the second quarter as people tend to
fall sick more during the monsoons.
    Last week, Torrent Pharma missed second-quarter profit estimates, hurt by the shutdown of an insulin
manufacturing facility.    
    
    PEER COMPARISON
    
                                               Estimates (next 12         Analysts' sentiment         
                                                    months)                                           
                    RIC        PE     EV/EBI  Revenue     Profit    Mean      # of     Stock to       Div
                                      TDA     growth (%)  growth    rating*   analyst  price          yield
                                                          (%)                 s        target**       (%)
 Mankind Pharma      MNKI.NS   44.78   31.43    14.63      17.03    Buy            15      1.09       NULL
 Ltd                                                                                                  
 Torrent             TORP.NS   45.66   25.86    12.26      27.54    Buy            27      0.92           0.89
 Pharmaceuticals                                                                                      
 Ltd                                                                                                  
 Glenmark            GLEN.NS   30.00   17.17    13.05      210.35   Buy            10      1.10           0.15
 Pharmaceuticals                                                                                      
 Ltd                                                                                                  
 Sun                 SUN.NS    35.81   26.60     9.53      14.61    Buy            32      0.95           0.73
 Pharmaceutical                                                                                       
 Industries Ltd                                                                                       
 * 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
    
    JULY TO SEPTEMBER STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 84.0660 Indian rupees



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 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))