Shares of Mankind Pharma Ltd. continued their impressive rally on Tuesday, September 22, rising more than 2% in intraday trade to reach ₹2,481 on the BSE, defying weak market sentiment. According to BSE data, the stock opened at ₹2,445.60 against its previous close of ₹2,429.85 and climbed 2.1% to an intraday high of ₹2,481, marking the fourth consecutive session of gains. This performance comes as the equity benchmark Sensex declined about 0.50% to hit an intraday low of 74,517 during the session, highlighting the stock's strong momentum despite broader market weakness.
The latest surge was driven by brokerage firm Kotak Institutional Equities upgrading its recommendation on the stock. The brokerage upgraded its rating to 'buy' from 'add' and raised the price target to ₹3,000 from ₹2,885, indicating an upside potential of 23% from current levels. As per CNBC TV18, this marks the fourth straight day of gains for the pharmaceutical company's stock, with the stock gaining 10.4% in just four sessions from recent lows. The upgrade cites signs of recovery in the company's core domestic business following the impact of prolonged restructuring.
The company delivered robust financial results in Q3FY26, with net profit rising 29.1% year-on-year to ₹574 crore and revenue growing 12.9% to ₹4,031 crore, as reported by The Economic Times. The growth was led by solid domestic performance and stronger export results. The company's EBITDA grew 24.7% to ₹1,060 crore, while margin expanded 250 basis points to 26.3%. The growth was led by solid domestic performance and stronger export results, with the company's domestic business growing by 15.5%.
According to the brokerage report, Mankind Pharma's base domestic business is finally showing tangible signs of recovery after a prolonged restructuring impact. Following the 12.7% secondary sales growth on an annual basis in the June quarter, there has been a further uptick in July and August with the company reporting 14.6% growth from last year, outpacing the Indian pharma market by 120 basis points. Kotak noted that with field force stability and a step-up in research and development, new launches and volumes should also pick up for the company.
The stock has demonstrated exceptional performance with 14% year-to-date gains compared to a 12% fall in the Sensex, as reported by BSE. In the last six months, the stock has clocked a gain of 23% and is up nearly 3% so far in September, looking set to snap its two-month losing run. Of the 22 analysts who have coverage on Mankind Pharma, 14 have a 'buy' rating, while four each have 'hold' and 'sell' ratings. With a target price of ₹2,910, analysts recommend a 'Buy' for the stock.
