Mankind Pharma shares drop 4% post block deal

Are you curious about what happened with the shares of Mankind Pharma, today? What made the share price fall over 4%? The reason behind its lacklustre start in morning trading was due to the block deals that took place for the company’s shares.

At the start of the day, the company’s shares began trading at Rs 1,849 per share on the BSE, marking a 3.6% decline compared to the previous day’s closing price of Rs 1,918.75 per share. Furthermore, the stock hit an intraday low of 1,832.30, representing a decline of around 4.5% from the previous day’s closing price.

The bearish start in the stock followed a block deal involving 3,00,73,272 crore shares traded today. The total value of these shares traded in the block deal was around Rs 5,523 crore. However, the identities of the buyers and sellers are not currently known.

Earlier, various sources had reported that some private equity firms were planning to sell stakes worth Rs 5,000 crore in Mankind Pharma through block deals on Tuesday. Specifically, Chrys Capital, Capital Group, and Everbridge Partners were looking to sell a 5% to 6% stake in the pharmaceutical major.

Furthermore, according to sources reported by CNBC-TV18 on Monday, five private equity funds, including Beige Investment, Link Investment Fund, Cairnhill CIPEF, Cairnhill CGPE, and Hema CIPEF, were expected to reduce their stake in Mankind Pharma. However, the final names are not known to anyone as of now. We need to wait for the exchanges to disclose the names.

Share Performance 

As of writing the article, the company’s stock is trading at Rs 1,866.50 per share on the BSE, marking a 2.8% decrease from the previous day’s closing price of Rs 1,918.75 per share. The current market capitalization of the company stands at Rs 74,750 crore. Additionally, the company’s stock has generated a 27% return in the last six months and an impressive return of more than 70% over its initial IPO issue price of Rs 1,080 per share. On the listing day, the company debuted at a premium of 20%, opening at Rs 1,300 per share.

Financial Overview: 

In the second quarter of FY24, the company reported revenues of Rs 2,453 crore, marking a growth of 8.7% compared to the same quarter in the previous year when the revenue stood at Rs 2,258 crore. The company posted an operating profit of Rs 635 crore for the quarter, contrasting with an operating profit of Rs 522 crore in the corresponding quarter of the previous year while the operating profit margins stood at 26% during the Q2 FY24. Furthermore, the company reported a net profit of Rs 473 crore compared to a net profit of Rs 420 crore in the same period last year.

In terms of ownership, the Promoter holds 76.50%, While the FIIs and DIIs hold 4.18% and 4.56%, respectively, while the remaining 14.76% is held by public investors, according to the most recent update.

Business Overview 

Mankind Pharma Limited is engaged in the development, manufacturing, and marketing of pharmaceutical formulations across multiple acute and chronic therapeutic areas, along with a range of consumer healthcare products. The company was incorporated in 1991.

Disclaimer: This blog 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.