Mankind Pharma shares fall after blockbuster listing day; here's what investors should do

Mankind Pharma share price BSE, NSE today: Are Mankind Pharma shares witnessing profit-booking finally? The stock of Mankind Pharma – whose popular products include Manforce condoms and Prega News pregnancy test kits – faced some selling pressure on Wednesday, a day after making a stellar debut in the secondary market. Mankind Pharma (MANKIND) shares fell as much as 6.3 per cent from their previous close to Rs 1,334.5 apiece on BSE. Even at this level, the stock of the pharma major commanded a premium of 23.6 per cent over the upper end of its IPO price band. 

The Mankind Pharma stock scaled a new high of Rs 1,431 apiece on the bourse within the first few minutes of trade on Wednesday before reversing direction. On Tuesday, the stock had finished the listing day at a premium of 32 per cent over the issue price. 

Mankind Pharma listing: Five key things to know

• The stock staged a bumper debut on Dalal Street, listing at a premium of more than 20 per cent at Rs 1,300 per share.
• Mankind Pharma shares continued to rise after the listing, covering a distance of Rs 100 from Rs 1,300 within the first 90 minutes of trade itself. 
• Mankind shares finished the listing day at a premium of 32 per cent over the issue price on stock exchanges BSE and NSE.
• At the end of the listing day, the market capitalisation (mcap) – or market value – of the company stood at Rs 56,976 crore.
• The stock registered a high of Rs 1,430 on the bourses on the listing day.    

Mankind Pharma shares: What should investors do with the newly-listed stock?

Zee Business Managing Editor Anil Singhvi suggests investors to ‘hold’ on to the stock from a long-term perspective. "It is a stock worth having in the portfolio in the long run," he said.

Singhvi also said that even those who intended to exit the stock with a listing gain may hold on to their investments.

Prior to the listing, the market guru had predicted Mankind Pharma to be a game-changer in the IPO space. He suggested buying the stock at Rs 1,150-odd levels. 

"One has to see this company differently among drug makers operating in the country given the relatively lower levels of business uncertainties," he said. 

Mankind Pharma shares: What analysts say

A number of analysts have positive views on the stock.

Mankind Pharma shares are trading a price-to-earnings multiple of 46.7 times on a trailing 12 months basis, said Rajnath Yadav, Senior Analyst at Choice Broking.

Yadav sees limited upside in the stock and suggests investors to book profit and enter at a lower price later subject to availability.

Domestic brokerage firm Motilal Oswal has a ‘buy’ rating on Mankind Pharma shares with a target price of Rs 1,700 per share (27% upside) with a stop loss of Rs 1,260 apiece. 

Mankind Pharma IPO: Key things to know

The Mankind Pharma IPO was open for subscription from April 25 to April 27. The IPO concluded with an overall subscription of over 15 times with strong participation from institutional investors.

Potential investors could bid for Mankind Pharma shares in a price band of Rs 1,026-1,080 apiece in multiples of 13 under the IPO. 

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