Target: ₹2,640
CMP: ₹2,246.55
Mankind Pharma’s domestic formulation (DF) business is witnessing a healthy revival, with March 2026 growth at 11.5 per cent year on year vs. IPM growth at 10.6 per cent, driven by chronic therapies (cardiac up about 20 per cent/anti-diabetic up about 12.6 per cent), indicating improving execution and field force stability after restructuring.
Growth drivers are strengthening structurally, with the performance of new Rx launches surging 4.8x over the past three years (to ₹520 crore in MAT March 2026) and a concentrated contribution from top brands (about 65 per cent). Moreover, a rapidly scaling up in-licenced/partnered portfolio (about 3x growth, led by respiratory) is building a dual-engine growth model for Mankind.
BSV has moved past the integration phase, with a strong pick-up in growth in Q3FY26, driven by normalisation in operations and improved execution. With cost synergies having largely been realised, the next phase will be led by revenue synergies, cross-selling opportunities and operating leverage.
Overall, we expect a CAGR of 13 per cent/11 per cent in DF/export revenue over FY26-28, led by restructuring-led revival and strengthening revenue synergy in acquired products. Accordingly, we expect 16 per cent EBITDA CAGR over FY26-28. This would be further supported by a declining interest outgo, driving 27 per cent earnings CAGR over FY26-28. We value Mankind at 35x 12M forward earnings to arrive at a TP of ₹2,640. Reiterate Buy.