Target: ₹2,360

CMP: ₹2,092.90

Mankind Pharma reported 42 per cent y-o-y EBITDA growth, led by 19 per cent sales growth (India formulation up 11 per cent and exports grew 230 per cent) and gross margin expansion (+262 bps). India growth was largely led by 15 per cent growth in the chronic segment (outperformance in CVS, anti-diabetics, and CNS) and recovery in gynaecology. Export grew 230 per cent YoY on US one-off opportunity. In

FY25, Mankind expects Steady growth in India (volume to outperform IPM by 1.3-1.4x, 3.5-4 per cent new launches and 4-5 per cent price-led growth); mid-teen growth in consumer healthcare; export business to see mid-teen growth; gross margin to sustain at 69+ per cent; and EBITDA margin guidance raised to 25-26 per cent (from earlier 24-26 per cent).

The company is looking for India-focused M&As (enabling resolution to raise ₹7,500 crore through QIP, increase the investment limit to ₹10,500 crore, and increase limits for borrowing to ₹12,500 crore). We retain the TP at ₹2,360 (36x FY26E), given steady growth visibility in India formulation (acute recovery and strong scale-up in chronic segment), growth momentum in exports, and margin expansion of 50-100 bps for each FY25 and FY26.