Mankind Pharma share falls 6% today after gaining 32% over IPO price; should you buy, sell or hold?

As Mankind Pharma shares fell 6% in trade today following its bumper listing on the bourses yesterday, analysts are mixed on if you should buy, sell or hold the stock.

mankind pharma
Mankind Pharma closed its listing day at the day's high, 32% above the issue price of Rs 1080.

Mankind Pharma share price fell 6% today after surging 32% over the IPO price yesterday in its stock market debut. Analysts have mixed views on whether investors should buy, sell, or hold Mankind Pharma stock. The scrip listed at a premium of 20% to its issue price of Rs 1080 and closed its listing day 32% above the issue price. Today, the stock fell, touching a low of Rs 1340, before trimming losses. At 12:30 pm, Mankind Pharma stock was trading at Rs 1390.3, down 2.2% from yesterday’s closing on the NSE.

Book profits in Mankind Pharma stock, say some analysts

Choice Broking has recommended investors to book profits at the current price of Rs 1382 and reenter at a lower price later. The stock is currently trading at a TTM P/E multiple of 46.7x, which is expensive compared to its peers. Although the company’s fundamentals look good for the long term, there are better opportunities in the pharmaceutical space that are trading at lower multiples. “We see limited upside from here, thus investors are recommended to book profit and later enter at lower price, if available,” said the brokerage.

Stoxbox has recommended investors who have got allotment in the IPO to book profits on the opening day. Although the company’s fundamentals look good from a long-term perspective, the valuations are expensive compared to its peers. “We would be comfortable for fresh entry at lower levels. At the current juncture, there are better opportunities in the pharmaceutical space which is trading at lower multiples compared to long term averages,” said Prathamesh Masdekar, Research Analyst, Stoxbox.

Hold Mankind Pharma shares, say others

Swastika Investmart has maintained a bullish view of the stock and advised investors to hold it for the long term. The company has strong fundamentals and is already attracting outperforming ratings from global brokerage Macquarie. However, investors who applied for listing gains may either choose to exit or hold it with a stop loss at the issue price.

Mehta Equities and Motilal Oswal Financial Services have advised investors who have got allotment in the IPO to hold the stock as a portfolio stock for the long term. Both the firms have cited the company’s “domestic focus of the business, strong distribution network and good products at affordable prices” as reasons for holding the stock. The healthcare sector has started seeing traction over the last two months. Mankind is likely to continue doing well,” said Hemang Jani, Head of Equity Strategy, Motilal Oswal Financial Services.

“Given its healthy financial track record, domestic focus and extensive network, Mankind is likely to continue doing well. We are advising allotted investors to hold it as a portfolio stock for the long term. Moreover, the healthcare sector was a laggard over the last one year but started seeing traction as the monthly pharma data showed improvement,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

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First published on: 10-05-2023 at 12:46 IST