Target Price: ₹2,640
Current Market Price (CMP): ₹2,246.55
Mankind Pharma’s domestic formulation (DF) sector is experiencing a robust recovery, with year-on-year growth of 11.5 percent reported for March 2026, compared to the Indian Pharmaceutical Market (IPM) growth of 10.6 percent. This growth is primarily driven by chronic therapies, including a 20 percent increase in cardiac treatments and a 12.6 percent rise in anti-diabetic medications, reflecting enhanced operational execution and improved stability within the field force following recent restructuring.
Growth drivers within the company are becoming increasingly solid, evidenced by the remarkable 4.8-fold surge in the performance of new prescription (Rx) launches over the last three years, amounting to ₹520 crore in the moving annual total (MAT) for March 2026. Additionally, top brands are significantly contributing about 65 percent to revenue. The portfolio of in-licensed and partnered products is also rapidly expanding, particularly in the respiratory segment, with an approximate threefold growth, thus establishing a dual-engine growth model for Mankind.
The integration of BSV is now complete, leading to a notable uptick in growth during the third quarter of FY26, attributed to the normalization of operations and enhanced execution. Following the realization of cost synergies, the next phase is anticipated to focus on revenue synergies, cross-selling opportunities, and operational leverage.
Overall, projections estimate a compound annual growth rate (CAGR) of 13 percent for domestic formulations and 11 percent for export revenues from FY26 to FY28, fueled by a revival driven by restructuring and strengthened revenue synergies in acquired products. This is expected to result in a 16 percent EBITDA CAGR over the same period. A decline in interest expenses is likely to support a 27 percent earnings CAGR between FY26 and FY28. Valuing Mankind at 35 times the 12-month forward earnings leads to a target price of ₹2,640. Analysts reiterate a “Buy” recommendation.
Published on April 30, 2026
