Mankind Pharma shares gain after OTC biz transfer to subsidiary; details

Mankind Pharma’s stock price gained up to 2.41 per cent at Rs 2451.95 per share on the BSE in Wednesday’s intraday deals. Mankind Pharma share price surged after the company on Tuesday completed a business transfer agreement (BTA) to shift its over-the-counter (OTC) business to its wholly owned subsidiary, Mankind Consumer Products Private Limited (MCPPL), via a slump sale. 

This transaction involves selling the OTC business for a lump sum without specifying individual asset and liability values. MCPPL will take over the OTC business, which includes various non-prescription products, as a going concern.

“The completion of slump sale of OTC business undertaking to MCPPL is subject to pre-conditions, closing actions and other terms and conditions as specified in the BTA,” the company said in an exchange filing. 

Mankind Pharma is the fourth biggest domestic pharmaceutical company. It reported a 9.9 per cent year-on-year increase in consolidated net profit, reaching Rs 543 crore in Q1FY25, up from Rs 494 crore in the same quarter last year. 

Revenue from operations grew by 12.2 per cent year-on-year to Rs 2,893 crore for the June quarter, compared to Rs 2,579 crore in Q1FY24. 

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) rose to Rs 686 crore in the June quarter, up from Rs 660 crore in the previous year.

Mankind Pharma has a total market capitalisation of 96,332.88 crore. Its shares are presently trading at a price to earnings multiple of 49.76 times with an earning per share of Rs 48.11.

At 12:07 PM; the share of the company was 0.37 per cent higher at Rs 2403 per share on the BSE. By comparison, the BSE Sensex was trading 0.50 per cent lower at 82,145 levels. 

Mankind Pharma develops, manufactures, and markets pharmaceuticals and consumer healthcare products across various therapeutic areas, including anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, neuro/CNS, vitamins, and respiratory treatments.