Why
Neutral
Low Room for Capital Appreciation and Little Exposure to US Markets
Rich Valuation
Issue Details
| Issue Opens | 25th April 2023 |
| Issue Closes | 27th April 2023 |
| Price Band | Rs. 1026– Rs. 1080 |
| Issue size (Upper Band) | Rs. 4326 Cr |
| Issue Type | OFFER FOR SALE |
| Market cap (based on upper band) | 43263 Cr |
| Sales- March 2022 (Rs./Crs) | 7782 Cr |
| Net Profit - March 2022 (Rs./Crs) | 1453 Cr |
| Industry | Pharma |
| Promoters | Ramesh Juneja |
| Lead Manager | JP Morgan |
Offer for Sale Rs. 4326cr
The funds collected from the Offer for Sale will not be used by the company.
Achieve the benefits of listing the equities on the stock exchange
| Name | Type | Number of Equity Shares for OFS |
% of Total Offerings (OFS) |
|---|---|---|---|
| Ramesh Juneja | Promoter | 37,05,443 | 9.2% |
| Rajeev Juneja | Promoter | 35,05,149 | 8.8% |
| Sheetal Arora | Promoter | 28,04,119 | 7.0% |
| Cairnhill CIPEF Limited | Investor | 1,74,05,559 | 43.4% |
| Cairnhill CGPE Limited | Investor | 26,23,863 | 6.6% |
| Beige Limited | Investor | 99,64,711 | 24.9% |
| Link Investment Trust | Investor | 50,000 | 0.1% |
Mankind Pharma develops, manufactures, and markets a wide range of pharmaceutical formulations in acute and chronic therapeutic areas, as well as several consumer healthcare items.
They are focused on the domestic market, with India accounting for 98% of their income.
The pharmaceuticals business accounts for 90% of its revenue, while the consumer business accounts for 10%.
They have created 36 brands in the pharmaceutical business, each of which has reached over 50 crore in domestic sales in the last 12 months till December 2022.
| Revenue Breakdown by Geography: | ||||
|---|---|---|---|---|
| | 9MFY23 | FY 22 | FY 21 | FY 20 |
| Domestic | 97% | 98% | 97% | 99% |
| International | 3% | 2% | 3% | 1% |
In 9 months till December 2022, the company reported a revenue of Rs. 6697 crore and a net profit of Rs. 1016 crore.
In FY22, the company reported a revenue of Rs. 7782 crore, compared to Rs. 6214 crore of FY21.
The company reported net profit of Rs 1453 crore in FY2022, compared to Rs 1293 crore, a growth of 12.4 per cent.
In FY22, the company reported a RONW of 23.3%, down from 26.8% in FY21 and 29.6% in FY20.
| Rs./Crs | 9MFY23 | FY 22 | FY 21 | FY 20 |
|---|---|---|---|---|
| Sales | 6697 | 7782 | 6214 | 5865 |
| Net Profit | 1016 | 1453 | 1293 | 1056 |
| Net Profit Margin | 15% | 19% | 21% | 18% |