📌 At a Glance
From ₹6,214 Cr revenue in FY21 to ₹12,207 Cr in FY25, Mankind Pharma doubled its top line in 5 years. EPS? From ₹31 to ₹48.25. PAT? ₹2,011 Cr. Great! But then comes the twist: debt ballooned from ₹207 Cr to ₹8,511 Cr in just one year.
Is India’s most trusted OTC + pharma combo… now just another leveraged bet?
🧵 About the Company
Founded in 1995 and known for everything from Prega News to Manforce, Mankind Pharma has grown to become:
- 🏆 #1 by doctor prescriptions
- 📈 #4 by value in the Indian pharma market
- 👶 Youngest player in the top 5 of IPM (Indian Pharma Market)
- 🧴 Home to 4 consumer brands ranked #1 in their category
It straddles both acute + chronic pharma segments AND consumer healthcare. Think of it as India’s rare crossover of Cipla + Emami.
👨⚕️ Key Managerial Personnel (KMP)
- R.C. Juneja – Founder & Non-Executive Chairman
- Rajeev Juneja – MD & Vice-Chairman
- Sheetal Arora – CEO
- Key appointments unchanged — family continues to run the empire with controlled promoter holding (~72.7% as of Mar 2025)
💰 5-Year Financials (FY21–FY25)
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | EBITDA Margin % | EPS (₹) | Net Worth (₹ Cr) | Borrowings (₹ Cr) | ROCE % |
|---|---|---|---|---|---|---|---|---|
| FY21 | 6,214 | 1,649 | 1,293 | 27% | 31.59 | 4,722 | 241 | 37% |
| FY22 | 7,782 | 1,991 | 1,453 | 26% | 35.78 | 6,155 | 873 | 32% |
| FY23 | 8,749 | 1,902 | 1,310 | 22% | 32.00 | 7,395 | 170 | 22% |
| FY24 | 10,335 | 2,538 | 1,942 | 25% | 47.75 | 9,323 | 207 | 26% |
| FY25 | 12,207 | 3,018 | 2,011 | 25% | 48.26 | 14,332 | 8,511 | 18% |
🎯 Revenue CAGR (5Y): 18%
📉 ROCE Drop: From 37% to 18%
💥 Borrowing Shock: ₹207 Cr → ₹8,511 Cr in 1 year
🧾 EPS Growth: Slow but steady — ₹31.59 → ₹48.26
📊 5-Year Stock Journey
- IPO listed in May 2023
- Listing Price: ₹1,300
- June 2025 CMP: ₹2,352
- 🔺 Return since listing: +81%
- P/E: ~49x — not cheap, even by pharma royalty standards
Yet, the market still loves it. Why?
Because no one else is selling condoms and cough syrup under the same brand umbrella.
🧮 Forward-Looking Fair Value (FY26–FY27)
Assumptions:
- Revenue CAGR: 14–15%
- Margin steady at ~25%
- PAT growth 10–12%
- Valuation range: P/E of 35–40 (industry avg, accounting for OTC + pharma mix)
FY26 EPS Estimate: ₹54–₹58
Fair Value Range: ₹1,900–₹2,320
⚠️ CMP = ₹2,352 → Already slightly over the top. Priced for perfection — and then some.
🔭 Growth Outlook
- BSV Pharma Acquisition integrated (FY25)
- Entering US market cautiously
- Expanding manufacturing footprint (CapEx = reason behind debt surge)
- OTC brands still dominant (Prega News, Gas-O-Fast, Manforce)
But the wildcard: Will they be able to sustain margins while paying off this new mountain of debt?
😎 EduInvesting Take
“Mankind Pharma just borrowed ₹8,500 Cr like it’s buying a few boxes of Manforce XXL at wholesale rate.”
Let’s be clear: This is no scam.
It’s a monster biz, crushing both doctors and retail shelves.
But that FY25 borrowing spree? 👀 It’s either:
- A once-in-a-decade infra bet OR
- A warning sign of overreach
Also — no dividend. No buyback. No love for public investors. Only P/E 49 vibes.
⚠️ Risks & Red Flags
- 💣 Sudden spike in debt. From almost debt-free to levered-up
- 🧾 EPS growth slowing even as topline rises
- ⏳ Working capital days jumped to 112 (was 41 in FY24)
- 🩺 Pharma is margin sensitive – 1% OPM drop hurts ₹100s of crores
- ❌ Still no dividend – investors holding purely for price appreciation
🎯 Verdict
Mankind is a brilliant brand… but the FY25 balance sheet looks like it just popped a wrong pill.
If management can tame debt and keep PAT growing, this can be a long-term multibagger with OTC tailwinds.
If not? Well… there’s always Prega News to find out early.
🗓️ Date: 8 June 2025
✍️ Author: Prashant Marathe
🏷️ Tags: Mankind Pharma, Pharma Stocks, OTC Brands, FY25 Results, Debt Surge, 5-Year Recap, IPO Analysis
