Buy, sell or hold Mankind Pharma shares after stellar debut? What Anil Singhvi recommends

Mankind Pharma shares made a stellar debut in the secondary market on Tuesday, May 9, starting their journey on exchanges BSE and NSE at Rs 1,300 apiece. However, a spike in the stock of Mankind Pharma (MANKIND) — whose popular products include Manforce condoms and Prega News pregnancy test kits — immediately after the strong debut got investors, at least those looking to book listing gains, wondering whether to press the exit button already. 

Within an hour of their journey in the listed space, Mankind Pharma shares reached the Rs 1,400 mark, taking the premium over the upper end of the issue price from 20-odd per cent at debut to almost 30 per cent. 

Should you buy, hold or sell Mankind Pharma shares now?

Zee Business Managing Editor Anil Singhvi recommends investors to hold on to the stock from a long-term perspective. The market wizard had predicted Mankind Pharma to be a game-changer in the IPO space.

Even those who intended to exit the stock with a listing gain may hold on to their investment, he said.

How was the Mankind Pharma IPO listing?

The Mankind Pharma listing even beat Singhvi's expectations. The market guru had expected the stock to debut at Rs 1,200-odd levels, a premium of 11 per cent. 

Prior to the listing, Singhvi had suggested long-term investors to hold the stock and buy more around Rs 1,150 per share. The strong performance of the stock is expected post-listing, he added.

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

The initial public offering (IPO) of Mankind Pharma, which was open for subscription from April 25 to April 27, saw an overall subscription of more than 15 times with strong participation from institutional investors.

What analysts say

Many analysts have positive views on the stock. 

Macquarie initiated an ‘outperform’ rating with a target price of Rs 1,400 on Mankind Pharma, just ahead of the listing on BSE and NSE.

According to the brokerage, the company's chronic focus is likely to drive meaningful growth and margin expansion.

Swastika Investmart Head of Research Santosh Meena pointed out that Mankind Pharma has strong fundamentals. "We remain bullish on the stock... Investors may hold for the long term. However, investors who applied for listing gains may either choose to exit or hold it with a stop loss at the issue price,” he said.

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