Stock Price Movement and Market Context
The stock has been on a downward trajectory for the past two sessions, losing a cumulative 2.84% over this period. Despite this, it marginally outperformed its sector today by 0.26%. Mankind Pharma is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend in the short to medium term.
In contrast, the broader market has shown resilience. The Sensex, after a negative start, rebounded sharply by 418.71 points to close at 80,974.39, up 0.31%. Notably, the NIFTY FMCG index also hit a new 52-week low today, indicating sector-specific pressures in consumer-related stocks. The Sensex remains below its 50-day moving average, though the 50DMA is positioned above the 200DMA, suggesting mixed technical signals. Mega-cap stocks are leading the market gains, while Mankind Pharma’s performance remains subdued.
Financial Performance and Valuation Metrics
Over the past year, Mankind Pharma’s stock has declined by 16.54%, underperforming the Sensex, which has gained 4.48% in the same period. The stock’s 52-week high was Rs.2726.75, highlighting the extent of the recent correction.
The company’s latest financial results have been relatively flat. Interest costs for the nine months ended September 2025 rose sharply by 122.24% to Rs.530.87 crores, reflecting increased borrowing or higher interest rates. Meanwhile, the profit after tax (PAT) for the latest six months declined by 20.05% to Rs.949.83 crores, indicating pressure on the bottom line.
Return on Capital Employed (ROCE) for the half year stood at 12.33%, which is modest and below the company’s historical highs. The current ROCE of 11.7% combined with an enterprise value to capital employed ratio of 4.5 suggests that the stock is trading at a valuation that is fair relative to its peers’ historical averages but may be considered expensive given the recent profit contraction.
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Long-Term and Relative Performance
In addition to the one-year underperformance, Mankind Pharma has lagged behind the BSE500 index over the last three years, one year, and three months. This below-par performance in both the near and long term reflects challenges in maintaining growth momentum and investor confidence.
The stock’s downgrade from a Hold to a Sell rating on 19 November 2025, accompanied by a Mojo Score of 38.0 and a Mojo Grade of Sell, underscores the cautious stance adopted by rating agencies. The company’s market capitalisation grade is rated at 1, indicating a relatively smaller market cap compared to larger peers in the sector.
Balance Sheet Strength and Management Efficiency
Despite the recent price weakness, Mankind Pharma exhibits strengths in certain financial metrics. The company maintains a high management efficiency with a ROCE of 25.78% in other periods, reflecting effective utilisation of capital in generating returns. Additionally, the firm’s debt servicing capability remains robust, with a low Debt to EBITDA ratio of 0.54 times, indicating manageable leverage levels.
Institutional investors hold a significant 24.59% stake in the company, suggesting confidence from entities with extensive analytical resources and a long-term perspective on fundamentals.
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Summary of Key Metrics
Mankind Pharma’s recent stock price decline to Rs.2053 marks a new 52-week low, reflecting a combination of subdued profit growth, increased interest expenses, and valuation pressures. The stock’s performance over the past year has been negative, with returns of -16.54% compared to the Sensex’s positive 4.48%. The downgrade to a Sell rating and a Mojo Score of 38.0 further highlight the cautious outlook.
While the company demonstrates strong management efficiency and a healthy balance sheet with low leverage, these factors have not been sufficient to offset the impact of declining profits and valuation concerns in the current market environment.
Investors and market participants will continue to monitor the stock’s price action and financial results closely as it navigates these challenges within the Pharmaceuticals & Biotechnology sector.
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