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Mankind Pharma’s strong Q2 results drive stock surge

Stocks
2 min Read Nov 6, 2024
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Mankind Pharma’s stock surged 6.2% on November 6, reaching a high of ₹2,882.75 on the BSE. This came after the company reported impressive Q2 FY25 earnings, making it a compelling choice for share market investment.

Robust performance in Q2 FY25

Mankind Pharma's profit after tax (PAT) climbed 29% year-on-year to ₹659 crore, up from ₹511 crore in Q2 FY24, while revenue rose 13.6% to ₹3,077 crore. The rise was largely driven by a 10.5% growth in its domestic business revenue to ₹2,796 crore and an uptick in exports. This solid growth makes Mankind Pharma a notable option for investors in share market investment, especially given its strong domestic and international performance.

Margin improvements and sector growth

The company’s EBITDA margins improved by 220 basis points to 27.6%, up from 25.2% last year. Mankind’s expansion in this key metric underscores its efficient management and growing operational strength. The pharmaceutical sector’s 8.6% secondary sales growth, surpassing the Indian Pharma Market’s 8%, further highlights Mankind’s solid position in the industry. For those interested in share market investment, these factors contribute to the stock’s potential.

Outlook and factors to consider for investment

While Mankind Pharma saw growth, some regulatory challenges impacted its operations. However, the company’s optimisation strategies continue to improve efficiency, enhancing its appeal for share market investment. With a diverse portfolio and a consistent upward trend in stock value (a 54% increase over the past year), Mankind Pharma presents a strong opportunity for long-term growth.

Invest safely

Mankind Pharma’s strong Q2 performance and impressive stock recovery highlight its position in the market. As a potential share market investment, the company offers a blend of robust domestic growth, international expansion, and steady operational improvements. Given its solid fundamentals, Mankind Pharma remains a compelling option for investors seeking to capitalise on the growing pharmaceutical sector in India.