Natco Pharma Ltd Stock Analysis

BSE: 524816 | NSE: NATCOPHARM | Pharmaceuticals & Drugs | Mid Cap

BSE Share Price 21-Mar-2023 18:01
546.70 7.70 (1.43%)

DeciZen - Make an Informed Decision on Natco Pharma

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Natco Pharma Price Chart

P/E Ratio ( SA) :
30.59
Market Cap :
9,839.8 Cr.
52-wk low :
502
52-wk high :
846.7
Bole Toh?

1. Is Natco Pharma Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Natco Pharma Ltd is a good quality company.

2. Is Natco Pharma Ltd undervalued or overvalued?

The key valuation ratios of Natco Pharma Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Natco Pharma Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Natco Pharma Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Natco Pharma:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Natco Pharma Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 12.4%13.7%16.5%14.7%31.1%26.8%18%11.4%6.8%2.5%-
Value Creation Index -0.1-0.00.20.11.31.00.3-0.2-0.5-0.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5586227161,0211,9582,0911,9861,7901,6541,7682,084
YoY Gr. Rt. %-11.6%15%42.7%91.7%6.8%-5%-9.9%-7.6%6.9%-
Adj EPS 5.26.29.510.229.337.33524.615.55.617.6
YoY Gr. Rt. %-18.2%53.7%8%186.7%27.3%-6.2%-29.7%-37.3%-64.1%-
BVPS (₹) 34.344.352.976.296.5168.1193.6211.3223.2229.5246.5
Adj Net Profit 81.8102157178511689640449282101322
Cash Flow from Ops. 7017212519033047669942318457.7-
Debt/CF from Ops. 4.81.42.50.60.70.40.60.71.46.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.7%-2%-3.8%6.9%
Adj EPS 0.7%-28.3%-45.9%-64.1%
BVPS 23.518.95.82.8
Share Price 20.5% -6.9% 0.8% -32.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 16.316.119.516.133.728.619.112.17.12.47.4
Op. Profit Mgn % 28.13031.92836.844.441.132.325.112.123
Net Profit Mgn % 14.716.42217.526.132.932.225.117.15.715.4
Debt to Equity 0.60.30.40.10.10.10.10.10.10.1-
Working Cap Days 2382562612371692583284164583910
Cash Conv. Cycle 606985764977971331872090

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 7.40%

Sales growth is good in last 4 quarters at 38.48%

Sales growth has been subdued in last 3 years -3.81%

Net Profit has been subdued in last 3 years -45.89%

Latest Financials - Natco Pharma Ltd.

Standalone Consolidated
TTM EPS (₹) 17.6 21.3
TTM Sales (₹ Cr.) 2,084 2,406
BVPS (₹.) 246.5 253.8
Reserves (₹ Cr.) 4,463 4,597
P/BV 2.19 2.11
PE 30.59 25.17
From the Market
52 Week Low / High (₹) 502.00 / 846.70
All Time Low / High (₹) 1.60 / 1188.95
Market Cap (₹ Cr.) 9,840
Equity (₹ Cr.) 36.5
Face Value (₹) 2
Industry PE 35.4

Management X-Ray of Natco Pharma :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Natco Pharma

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Natco Pharma Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Natco Pharma on 21-Mar-2023 18:01 is : 546.7.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 21-Mar-2023 18:01 the market cap of Natco Pharma stood at ₹ 9,839.8.
The latest PE ratio of Natco Pharma as of 21-Mar-2023 18:01 is 30.59.
The latest PB ratio of Natco Pharma as of 21-Mar-2023 18:01 is 2.19
The 52-week high of Natco Pharma is ₹ 846.7 and the 52-week low is ₹ 502.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Natco Pharma is ₹ 2,084 ( Cr.) .

About Natco Pharma Ltd

Natco Pharma was promoted by V C Nannapaneni in the year 1981 as a private company to be in the business of research, developing, manufacturing and marketing of pharmaceutical substances and finished dosage forms for Indian and International markets. The company began its operations in 1984 in Andhra Pradesh. The company focus is primarily on niche therapeutic areas and complex products. It market and distribute products in various countries. It also operates in certain key geographies through its subsidiaries.

Natco Pharma manufactures API products which are primarily used for captive consumption in its FDF products and are also sold to customers for various international markets. In the API segment, company has capabilities to develop and manufacture products with multi-step synthesis, semi synthetic fusion technologies, high-potency APIs and peptides.

Business area of the company

Natco Pharma is a vertically integrated and R&D focused pharmaceutical company engaged in developing, manufacturing and marketing of finished dosage formulations (FDF) and active pharmaceutical ingredients (APIs). It is also engaged in contract manufacturing business, whereby it undertake selected contracts with pharmaceutical companies to manufacture and supply pharmaceutical products. It has diversified into the business of crop health sciences to leverage is skills in organic chemistry.

Products:

  • Formulations
  • API’s
  • Contract manufacturing
  • Crop Health Sciences

Milestone:

  • 1981: Incorporated Natco Pharma Division at Kothur, Mahaboobnagar Dist, Telangana, India.
  • 1984: First full year in operation- sales of Rs 0.5 million
  • 1986: Inaugurated parental manufacturing facility at Nagarjunasagar, Telangana, India.
  • 1993: Inaugurated Natco’s chemical division at Mekaguda in Telangana.
  • 1995: Natco trust was founded. Natco merged three of groups companies with the parent company.
  • 1997: Inaugurated Natco Research Center (NRC) at Sanathnagar, Hyderabad, India.
  • 2003: Launched Oncology division with introduction of the flagship brand VEENAT (generic Imatinib Mesylate) for the treatment of chronic myelogenous leukemia.
  • 2006: Incorporated a finished dosage facility at Dehradun, Uttrakhand.
  • 2007: Natco launched its first ever ANDA in the US market. Natco acquired Savemart Pharmacy in USA.
  • 2008: Natco filed its first paragraph IV filing in the US market.
  • 2009: Inaugurated Natco Organics at Chennai, India with facilities dedicated for Cyto-toxic APIS’s Biotechnology products. Natco’s turnover reached $100 million.
  • 2011: Incorporated Natcofarma do Brazil LTDA.
  • 2012: Compulsory License was granted by government of India for patent protected anti-cancer drug Nexavar of Bayer.
  • 2012: Established Natco Pharma Asia Pte Ltd for sales and distribution in Singapore and winner of Golden peacock award for CSR work.
  • 2013: Established Natco Pharma Canada Inc for sales and distribution in Canada.
  • 2014: Established Natco Pharma Australia Pty Ltd for sales and distribution in Australia.
  • 2016: Sold U.S. based Save Mart pharmacy store. 
  • 2016: Winner of 'Golden Peacock Environment Management Award' for the Year 2016.
  • 2016: Launched generic version of Oseltamivir Phosphate capsules in the United States.
  • 2017: Started Cardiology and Diabetology divisions for domestic market with launches like Dabigatran. 
  • 2017: Launched Glatiramer Acetate injection (20 & 40 mg/ml) in the US. 
  • 2017: Launched complex drug delivery product, liposomal doxorubicin in the US.
  • 2018: USFDA completed inspection of Natco’s Mekaguda API facility with zero observations. 
  • 2018: Natco launched its first generic version of oral tablets Teriflunomide for Multiple Sclerosis in India. 
  • 2018: Natco introduced generic Posaconazole injection, available for the first time in India.
  • 2019: Commercial manufacturing operations begin in NATCO's Visakhapatnam Formulation Facility. 
  • 2019: Natco launches Crop Health Sciences Division.
  • 2019: Natco Pharma invests Rs 5 crore in OMRV Hospitals.
  • 2019: Natco Pharma has commenced commercial operations at Finished Dosage Formulations (FDF) facility in Visakhapatnam.
  • 2020: Natco Pharma’s subsidiary -- Natco Pharma (Canada) Inc., has entered into a settlement agreement with Celgene (now part of Bristol-Myers Squibb) for the product Lenalidomide Capsules in Canada. The terms of the agreement are confidential as per the agreement.
  • 2020: Natco Pharma has received Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA) for its drug formulations manufacturing facility at Visakhapatnam (Vizag) Andhra Pradesh, India.
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