Mankind Pharma Faces Pressure
- 24th January 2025
Aaj Ka Bazaar
Wall Street indices gained on Wednesday, driven by optimism surrounding President Donald Trump’s private-sector investment plan for AI infrastructure, which bolstered technology stocks. The S&P 500 rose by 0.61%, the Dow Jones Industrial Average climbed 0.30%, and the tech-heavy Nasdaq Composite climbed 1.28%. In the Asia-Pacific markets, stocks opened on a mixed note as investors reacted to varying regional economic data. Indian benchmark indices are expected to open slightly lower, as suggested by the GIFT Nifty trading marginally in the red, reflecting mixed global cues. On the stock-specific front, Bharat Petroleum Corporation Ltd. (BPCL) announced that its board has approved the submission of a development plan for the Nunukan block’s oil and gas reserves to the Indonesian regulator, with an estimated investment of $121 million. Additionally, BPCL’s board approved the formation of a joint venture with Praj Industries Ltd. to set up Compressed Bio Gas (CBG) plants across India.
Markets Around Us
BSE Sensex –76,318.43 (-0.11%)
Nifty 50 – 23,112.85 (-0.18%)
Bank Nifty – 48,568.45 (-0.32%)
Dow Jones – 44,1584.78 (0.01%)
Nasdaq – 20,015.54 (0.61%)
FTSE – 8,545.13 (-0.04%)
Nikkei 225 – 39,907.32 (0.65%)
Hang Seng – 19,821.26 (0.21%)
Sector: Pharmaceuticals
Mankind Pharma Falls 6% on Q3
Shares of Mankind Pharma dropped nearly 6% after the company reported a 16% year-on-year decline in net profit for the October-December quarter, falling to ₹385 crore due to higher expenses. The $1.6 billion acquisition of Bharat Serums and Vaccines (BSV), which began in October, also impacted profits. However, revenue rose 24% to ₹3,230 crore, supported by an increased market share in the domestic market from the BSV acquisition and leadership in gynae therapy. Despite the profit drop, the company’s EBITDA margin improved by 240 basis points to 25.8%, driven by a better product mix. Rising costs, including a significant jump in finance expenses and higher employee-related costs, weighed on the overall performance. At 9:51 am, the stock was trading at ₹2,515.25 on the NSE. Indian pharma companies, including Mankind Pharma, continue to grow due to strong domestic demand and new launches in specialty and chronic illness segments.
Why it Matters:
Mankind Pharma’s profit decline and rising expenses highlight the challenges of integrating large acquisitions like BSV while managing costs. Despite this, the revenue growth and improved EBITDA margin signal strong domestic demand and leadership in key segments. Traders should watch how the company balances growth and profitability in upcoming quarters.
NIFTY 50 GAINERS
WIPRO – 314.45 (1.73%)
ULTRACEMCO – 10865.85 (1.61%)
TECHM – 1699.90 (0.95%)
NIFTY 50 LOSERS
HINDUNILVR – 2267.50 (-3.22%)
NESTLEIND – 2170.00 (-1.71%)
LT– 3483.60 (-0.98%)
Sector: Telecom
Indus Tower Gains on Strong Q3
Indus Towers’ stock after the company reported strong Q3 results, with net profit jumping 159.9% year-on-year to ₹4,003 crore, driven by overdue payments from Vodafone Idea and significant tower additions. Revenue increased 4.8% to ₹7,547 crore compared to the same quarter last year. The company’s average sharing factor per tower stood at 1.65, with net lean colocation additions reaching 132 during the quarter. Indus secured a dominant share of Vodafone Idea’s rollouts, indicating strong tenancy growth. Citi Research maintained a ‘buy’ rating with a target price of ₹485, expecting a 32% upside from the current price of ₹370, citing robust free cash flow and potential dividend payouts in the coming quarters. This performance reflects the company’s strong execution capabilities and strategic positioning in the telecom infrastructure space, making it a key stock to watch for both traders and investors.
Why it Matters:
Persistent Systems’ strong Q3 results highlight its solid growth trajectory, improved margins, and robust deal pipeline exceeding $1 billion. Despite mixed brokerage views, its ability to secure large deals and expand into new verticals showcases long-term potential. The stock’s surge indicates market confidence, making it a key player to watch in the IT sector.
Around the World
Asian stocks mostly rose on Friday, following record highs on Wall Street and optimism over more economic support from China. Japan’s Nikkei 225 and TOPIX gained slightly despite the Bank of Japan hiking interest rates by 25 basis points, signaling more hikes ahead amid rising inflation and slower growth forecasts. Chinese markets also rose, supported by government policies encouraging investment in local equities, while Hong Kong’s Hang Seng rallied 1.7% on chipmaking stock gains. South Korea’s KOSPI gained 0.8% due to optimism over a U.S. artificial intelligence project. Australia’s ASX 200 added 0.5%, while Singapore’s market dipped after the central bank loosened monetary policy. Meanwhile, India’s Nifty 50 futures indicated a flat open near seven-month lows. Investors are also focused on next week’s U.S. Federal Reserve meeting, where rates are expected to remain unchanged. Chinese markets prepare for the Lunar New Year, with key PMI data due Monday.
Option Traders Corner
Max Pain
Nifty 50 – 23,250
Bank Nifty – 49,600
Nifty 50 – 23,102 (Pivot)
Support – 23,034, 22,913, 22,846
Resistance – 23,222, 23,290, 23,411
Bank Nifty – 48,526 (Pivot)
Support – 48,271, 47,819, 47,564
Resistance – 48,879, 49,234, 49,687
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