Investec has initiated coverage on Mankind Pharma (MNKI) with a “Buy” rating and a target price of ₹3,300, indicating a 35% upside from the previous close of ₹2,442. Investec’s report highlights Mankind Pharma’s vision to become an innovation-driven and differentiation-focused company, emphasizing its high entry barrier products.
The investment bank sees significant growth potential in the partnership between Mankind Pharma and BSV, particularly leveraging BSV’s strengths in specialty research and development (R&D) and sourcing. Investec believes BSV’s capabilities will complement MNKI’s strong presence and network in India, leading to a substantial increase in BSV’s India sales.
One of the key areas of focus is the underpenetrated In Vitro Fertilization (IVF) market, valued at $6 billion. Investec sees the potential for the MNKI-BSV collaboration to become a global leader in this segment.
Investec also notes that the market underappreciates BSV’s specialty business moat in both the near and long term. Under Mankind Pharma’s capable management, Investec believes BSV could achieve significant growth, potentially generating $1 billion in sales with an EBITDAM of over 35% by FY32, representing an improvement of more than 1000 basis points.
