Shares of Mankind Pharma surged by 4% to ₹2,519 in early trade on September 20, following a 'buy' recommendation by Investec. The brokerage firm initiated coverage, highlighting the strong growth potential of the pharmaceutical company. This has sparked significant interest for those looking to invest in stocks, particularly in the healthcare sector.
With a price target of ₹3,300, Investec expects an upside of 36% from the last closing price of ₹2,426 on the National Stock Exchange (NSE). So far this year, Mankind Pharma has already seen a 22% increase in its share price, making it an attractive option for those aiming to invest in stocks.
Investec's 'buy' recommendation is supported by Mankind Pharma's solid execution and strong brand presence in the market. The brokerage notes that the company's acquisition of Bharat Serums and Vaccines (BSV) adds further value, especially in the super-specialty space. They believe the combination of BSV's research and development capabilities, along with its sourcing strengths, will provide Mankind Pharma with a unique competitive edge. This makes the stock even more compelling for those looking to invest in stocks with long-term growth potential.
Investec also pointed out the complementary strengths between Mankind Pharma and BSV, which are expected to boost BSV's India sales through Mankind's extensive distribution network. The underpenetrated in vitro fertilisation (IVF) market is another area where the company is poised for growth, further establishing its position as a global leader. This promising outlook may appeal to those keen to invest in stocks with exposure to specialised healthcare markets.
Investec believes the market is currently undervaluing BSV's super-specialty business and its long-term growth prospects. The brokerage sees this segment as a significant driver of Mankind Pharma's future growth. For those considering investing in stocks, the undervalued nature of the business presents an opportunity to benefit from future upward momentum as the market begins to realise the strategic importance of BSV.
In other corporate news, Mankind Pharma's board announced on September 18 that it is exploring raising capital through various channels, including non-convertible debentures and commercial papers. These developments, combined with the company's robust growth strategy, make it a stock worth monitoring for anyone planning to invest in stocks in the near future.
At 9:20 am, Mankind Pharma shares were trading at ₹2,512, reflecting a 3.6% increase, underscoring the strong market sentiment following Investec's coverage.
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