D-Street newbie Mankind Pharma to be included in Nifty500, Nifty Midcap100 and other indices
Mankind Pharma, a recent entrant to the stock exchanges, has been included in several Nifty indices, including Nifty500, Nifty Midcap150, Nifty Midcap100 and Nifty200. The decision was taken at a meeting of the index maintenance sub-committee. Mankind Pharma, whose IPO was one of the largest this year, made a healthy debut on the exchanges in May.
The shares got listed at a premium of 20% to the issue price. Mankind is the fourth largest Indian pharmaceutical company in terms of domestic sales and third largest in terms of sales volume for moving annual total as of December 2022. It has a pan-India marketing presence and operates 25 manufacturing facilities across the country.
Post listing of the stock, Jefferies initiated a «hold» rating with a target price of Rs 1,830. The brokerage said levers are in place to sustain future outperformance. The stock is currently trading nearly 29% higher at Rs 1,675 over the listed price of Rs 1,300.
On Tuesday, it closed 1.32% lower over the previous day's price. Meanwhile, Kotak Institutional Equities has a 'Buy' recommendation on the stock for a target price of Rs 1,875. "(Mankind Pharma is) Well-positioned to further leverage its robust marketing prowess and reach.
Within branded Rx, we expect ramp-up of specialty and large brands to drive higher productivity for Mankind. We expect its outperformance over IPM to be pronounced over the next few years, as it yields benefits from the field force addition," Kotak said. In another major reshuffle, LTI Mindtree will get an entry into the Coveted Nifty after HDFC was excluded following its merger with HDFC Bank.
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