Mankind Pharma Block Deal: Stocks Fell Over 3%

Mankind Pharma, one of the biggest pharmaceutical companies in India, is engaged in the manufacturing and marketing of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products. The company’s shares are in the limelight today due to a block deal.

Beige Limited, a private equity firm affiliated with ChrysCapital, is the likely seller. The size of the deal, according to sources, is Rs 2,450 crore. The base price for the deal was estimated to be Rs 2,103 apiece.

Following the block deal, the shares of Mankind Pharma are trading lower today compared to the closing price of the last trading day. As of writing this article, the company’s shares are trading at Rs 2154 per share, around 2.56% down compared to Friday’s closing of Rs 2212.55 per share on the BSE. During the morning session, it hit intraday highs and lows of Rs 2212.55 and Rs 2141.50 respectively. The current market capitalisation of the company stands at Rs 86,358 crore.

Additionally, the company’s shares have delivered an impressive return of 23% in the past six months.

Today, there has been a significant spurt in the volume of the company’s shares, increasing by more than 40.54 times on the BSE.

Financials Performance

In the third quarter of FY24, Mankind Pharma reported revenues of Rs 2359 crore, reflecting a growth of 21% YoY compared to the same quarter in the previous year, when the revenue stood at Rs 1936 crore. The company posted an operating profit of Rs 603 crore for the quarter, in contrast to an operating profit of Rs 374 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net profit of Rs 487 crore, compared to a net profit of Rs 249 crore in the same period last year. However, the company’s net profit has surged by around 95% YoY this quarter.

The company’s ROCE and ROE are 20.7% and 17% while the shares are trading at 52 times in the market.

In terms of ownership, the Promoter holds 76.50%. The FIIs and DIIs hold 6.74% and 9.78% respectively, while public investors hold 6.97% as per the most recent update.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.