(Reuters) -Indian drugmaker Mankind Pharma reported a fourth-quarter profit that beat analysts’ estimates on Wednesday, driven by strong domestic demand for its drugs to treat long-term illnesses.
The company, which makes ‘Gas-O-Fast’ antacid tablets and ‘Manforce’ condoms, reported a 10.7% drop in consolidated net profit of 4.21 billion rupees ($49.2 million) for the quarter ended March 31.
However, that was higher than analysts’ average estimates of 3.60 billion rupees, according to data compiled by LSEG.
Overall revenue climbed 27% to 30.79 billion rupees. Its domestic market share of chronic illness drugs increased to 39.2% from 37.5%.
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KEY CONTEXT
The Indian pharmaceutical market grew 7% during the quarter, led by a 9% jump in the chronic segment, according to IQVIA data.
This benefitted Mankind Pharma and its peer Torrent Pharma, which rely on their drugs to treat long-term conditions, such as diabetes and hypertension, for most of their sales.
Moreover, Mankind said gains from its $1.6 billion acquisition of Bharat Serums and Vaccines, further boosted results.
Torrent Pharma, however, missed quarterly profit estimates due to currency depreciation in Brazil.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to
TDA growth (%) growth rating* analyst price
(%) s target**
Mankind Pharma 46.77 24.33 22.19 15.18 Buy 13 0.92
Torrent 43.64 25.54 13.07 31.19 Hold 24 0.94
Pharmaceuticals
Glenmark 23.15 13.62 11.80 24.48 Buy 9 0.86
Pharmaceuticals
J B Chemicals 32.46 20.78 11.31 18.87 Strong 11 0.83
and Buy
Pharmaceuticals
* The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY TO MARCH STOCK PERFORMANCE
— All data from LSEG — $1 = 85.5320 Indian rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Savio D’Souza)
