With a target price of Rs 2,500, the international brokerage firm implies an upside potential of 23% from the last closing price of Rs 2,030 per share on the BSE. The brokerage expects revenue to grow at a CAGR of around 11% between FY26 and FY28, while adjusted EPS is projected to see a stronger CAGR of about 25% over the same period.
Growth is likely to be supported by a recovery in the domestic business, along with optionality from its BSV segment. Morgan Stanley also sees the Indian pharmaceutical market expanding at 11% to 12% during FY26 to FY28 and prefers Mankind Pharma for its favourable risk-reward profile.
Mankind Pharma share price performance
The share price of the company has declined 10% in the last one month. Mankind Pharma shares are down 18% in the last six months.
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Mankind Pharma Q3 snapshot
The pharma major posted an 8% year-on-year rise in consolidated net profit, which stood at Rs 414 crore in Q3FY26, compared with Rs 385 crore in the same quarter last year. Revenue for the quarter grew 11.5% YoY to Rs 3,567 crore, up from Rs 3,199 crore in the corresponding period last year.On the operational front, domestic revenues rose 11.1% YoY to Rs 3,046 crore, driven by steady growth in the base business and supported by consolidation of BSV. Export revenues increased 14.1% YoY to Rs 521 crore, aided by strong performance in the international BSV business.
The company reported an adjusted EBITDA margin of 25.9%, while PAT margin stood at 11.6% during the quarter. Diluted EPS came in at Rs 9.9, registering a 6.7% YoY growth (face value Re 1).
While domestic revenue growth remained healthy, secondary sales growth stood at 8.5% compared with IPM growth of 11.8%, largely due to underperformance in acute therapies amid ongoing corrective actions.
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