Up almost 32% since listing, Mankind Pharma draws rush of 'buys'

Mankind Pharma has gar­n­ered the most analyst coverage of any new Indian stock in at least 12 years, as investors rush to buy the drug and condom maker’s shares following a blockbuster initial public offering (IPO) in May.

The company’s stock has surged more than 60 per cent since listing, driving its market value to about $8.5 billion.

It has already drawn nine buy ratings and one hold recommendation. That’s the most coverage in a similar span of time for an Indian stock that raised more than $500 million since November 2010, according to data compiled by Bloomberg.  Though most of the analysts covering the company recommend buying it, the consensus price target is already more than 10 per cent below the current level amid the stock’s stellar run.

The shares are trading at about 54 times trailing 12-month earnings, compared with 31 times for benchmark pharmaceutical index. Mankind’s stock jumped almost 32 per cent in its debut.