Mankind Pharma Limited is Bharat's fourth largest pharmaceutical company in terms of Domestic Sales and third largest in terms of sales volume for MAT December 2022. They are engaged in developing, manufacturing and marketing a diverse range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer health care products. They have created 36 brands in the pharmaceutical business that have each achieved over ?500.00 million in Domestic Sales for MAT December 2022. They have one of the largest distribution networks of medical representatives in the Indian pharmaceutical market and over 80% of doctors in India prescribed the formulations for MAT December 2022. Further, in the Covered Markets, they were ranked second by market share for MAT December 2022. Company is present in several acute and chronic therapeutic areas in India, including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins/minerals/nutrients and respiratory. Our Covered Market presence in the IPM has increased from approximately 62% to approximately 69% between the Financial Year2020 and MAT December 2022. They entered the consumer healthcare industry in 2007 and have since established several differentiated brands in the condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements and anti-acne preparations categories. The total Covered Market for the consumer health care business amounted to ?206.82 billion in 2022. Company has a pan-India marketing presence, with a field force of 11,691 medical representatives and 3,561 field managers, as of December 31, 2022. They have also established a significant distribution network in India and, during the nine months ended December 31, 2022, they sold the products to over 12,000 stockists and engaged with 75 clearing and forwarding agents. During MAT December 2022, the Domestic Sales in the North India, South India, East India and West India regions amounted to approximately ?29,673 million, ?19,178 million, ?15,991 million and ?19,061 million, respectively, contributing to approximately 35%, 23%, 19% and 23%, respectively, of the total Domestic Sales. Company operates 25 manufacturing facilities across India and had 4,121 manufacturing personnel as of December 31,2022. The formulations manufacturing facilities have a total installed capacity of 42.05 billion units per annum across a wide range of dosage forms including tablets, capsules, syrups, vials, ampoules, blow fill seal, soft and hard gels, eye drops, creams, contraceptives and other over-the-counter products, as of December 31, 2022. Several of the facilities have obtained approvals or certifications from, and are subject to inspections by, a range of regulatory bodies including the Central Drugs Standard Control Organisation of the Ministry of Health and Family Welfare ('CDSCO') and the United States Food and Drug Administration ('USFDA'). Additionally, certain of the facilities have obtained certificates under the World Health Organization ('WHO') and PIC/S good manufacturing practices and guidelines, among others. They have established an independent quality assurance function, comprising 1,318 personnel as of December 31, 2022. As per financial performance, Mankind Pharma Limited has posted total income / net profits of Rs 5,975.65 Cr / Rs 1,052.08 Cr (FY20), Rs 6,385.38 Cr / Rs 1,293.53 Cr (FY21) and Rs 7,977.58 Cr / Rs 1,453.90Cr (FY22) and Rs 6,777.82 Cr / Rs 1,010.18 Cr (9MFY23). So as per last three years data, company has shown average growth. Company has posted an average EPS of Rs 32.71 and average RoNW of 25.51% for last three fiscals. Issue is priced at a P/BV of 6.05 as per NAV of 178.38 as on 31.12.2022. If we attribute latest earnings of FY22 on fully diluted equity post issue, then asking price is at a P/E of around 29.76 and as per annualized FY23 earnings P/E is around 32.12, which looks fully priced. As per RHP, peers comparison is shown in above table . On BRLM's front, 5 lead managers are associated with this IPO, and have handled around 107 IPOs in last three fiscals.Kotak Mahindra Capital Company Limited : This is 29th IPO from this BRLM. From last 10 IPOs, 2 opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 IPOs, 5 are trading below issue price and remainings are trading above issue price. ( As on 19.04.2023 )Axis Capital Limited : This is 36th IPO from this BRLM. From last 10 IPOs, 3 opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 IPOs 6 are trading below issue price and remaining are trading above issue price. ( As on 19.04.23 )IIFL Securities Limited : This is 29th IPO from this BRLM. From last 10 IPOs, 2 opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 IPOs 5 are trading below issue price and remaining are trading above issue price. ( As on 19.04.23 )Jefferies India Private Limited : This is 5th IPO from this BRLM. From last 4 IPOs, all opened above issue price. As of now, from last 4 IPOs 3 are trading below issue price and remaining are trading above issue price. ( As on 19.04.23)J. P. Morgan India Private Limited : This is 8th IPO from this BRLM. From last 7 IPOs, 6 opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 6 IPOs 5 are trading below issue price and remaining are trading above issue price. ( As on 19.04.23 ) As per financials, Mankind Pharma Limited has shown average growth, RoNW is 23.29% and P/E is respectively 29.76 and 32.12 as per FY22 and annualized FY23 earnings, which looks fully priced. Company is in pharmaceutical business which is highly competitive. Also, there are lot of listed players available. Performance of BRLMs are average. So, we give NEUTRAL rating for this IPO.
✍️ Post a Comment