Natco Pharma Ltd - Stock Valuation and Financial Performance

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

Natco Pharma Share Price

1,404.15 21.95 1.59%
as on 31-Oct'24 16:01

DeciZen - make an informed investing decision on Natco Pharma

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Natco Pharma stock performance -

mw4me loader
P/E Ratio (CD):
15.36
Market Cap:
25,130 Cr.
52-wk low:
725
52-wk high:
1,638.4

Is Natco Pharma Ltd an attractive stock to invest in?

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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 14.9%17.5%39.2%35.3%23.7%14.8%14%4.9%18.1%30.1%-
Value Creation
Index
0.10.31.91.60.80.10.0-0.60.31.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 7301,0422,0202,1852,0951,9152,0521,9452,7073,9994,221
Sales YoY Gr.-42.7%93.8%8.2%-4.1%-8.6%7.2%-5.2%39.2%47.7%-
Adj EPS 8.1927.737.233.924.522.87.337.977.191.4
YoY Gr.-11%209%34.4%-9%-27.7%-6.9%-68.1%420.6%103.3%-
BVPS (₹) 50.973.993.6165.2189.5206224.9233.4267.1327364.1
Adj Net
Profit
1341564836876194464161336921,3801,636
Cash Flow from Ops. 92.711234646466941729946.58491,212-
Debt/CF from Ops. 3.410.60.40.60.80.98.70.20.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 20.8%13.8%24.9%47.7%
Adj EPS 28.5%17.9%50.1%103.3%
BVPS23%11.5%13.3%22.4%
Share Price 17.2% 19.1% 18.5% 89.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
17.114.632.829.118.912.310.53.215.125.726.4
Op. Profit
Mgn %
28.325.933.842.538.130.429.413.633.943.948.1
Net Profit
Mgn %
17.814.823.831.429.523.120.36.825.534.538.8
Debt to
Equity
0.40.10.10.10.10.10.10.100.1-
Working Cap
Days
232230169252315381374339278210158
Cash Conv.
Cycle
8979517696124152179145102118

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 26.40%

Sales growth is growing at healthy rate in last 3 years 24.90%

Net Profit is growing at healthy rate in last 3 years 50.06%

Sales growth is good in last 4 quarters at 57.79%

No data to display

Latest Financials - Natco Pharma Ltd.

Standalone Consolidated
TTM EPS (₹) 85.9 91.4
TTM Sales (₹ Cr.) 3,758 4,221
BVPS (₹.) 347.8 364.1
Reserves (₹ Cr.) 6,193 6,486
P/BV 4.03 3.85
PE 16.34 15.36
From the Market
52 Week Low / High (₹) 725.00 / 1638.35
All Time Low / High (₹) 1.60 / 1638.35
Market Cap (₹ Cr.) 25,130
Equity (₹ Cr.) 35.8
Face Value (₹) 2
Industry PE 46.8

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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales7301,0422,0202,1852,0951,9152,0521,9452,7073,999
Operating Expenses 5247771,3371,2561,3001,3321,4481,6811,7952,247
Manufacturing Costs111149220239336306353430362457
Material Costs170271599411333354484528583668
Employee Cost 128180243326356375415445487525
Other Costs 116177274281275297197278364597
Operating Profit 2062666839287955836042649121,751
Operating Profit Margin (%) 28.2%25.5%33.8%42.5%37.9%30.4%29.4%13.5%33.7%43.8%
Other Income 1410144013010710699129128
Interest 32231915192213181519
Depreciation 4751546681100117143164187
Exceptional Items -15000000000
Profit Before Tax 1262026248878255695802028621,674
Tax 24814019218211113732147285
Profit After Tax 1251544856956424584421707151,388
PAT Margin (%) 17.1%14.7%24.0%31.8%30.7%23.9%21.6%8.7%26.4%34.7%
Adjusted EPS (₹)8.19.027.937.735.325.324.29.339.277.6
Dividend Payout Ratio (%)12%14%24%22%18%27%22%48%14%12%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 8461,2861,6343,0483,4583,7504,1044,2604,8745,853
Share Capital 33353537373637373736
Reserves 8131,2511,5993,0113,4223,7144,0684,2244,8375,817
Minority Interest55442112000
Debt26698222173386314266404165363
Long Term Debt97000000000
Short Term Debt16998222173386314266404165363
Trade Payables125276263269217255146162264236
Others Liabilities 142157195221240257274283355435
Total Liabilities 1,3841,8222,3183,7154,3034,5884,7925,1095,6576,887

Fixed Assets

Gross Block9409831,1591,4081,6952,1492,7023,1273,3753,603
Accumulated Depreciation2262733263894675646798159481,112
Net Fixed Assets7147108331,0191,2271,5842,0232,3122,4272,491
CWIP 12921233648063851822313064137
Investments 2223277169112304308392539
Inventories220357349438529558798762743701
Trade Receivables1922624756385065514136218561,189
Cash Equivalents 13453618428066284206546953
Others Assets1132142568809551,198747771629877
Total Assets 1,3841,8222,3183,7154,3034,5884,7925,1095,6576,887

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 93112346464669417299478491,212
PBT 1342096248878255695802028621,674
Adjustment 689110076145462124102134
Changes in Working Capital -86-141-253-2959-98-213-23163-309
Tax Paid -24-46-126-205-179-108-130-48-178-286
Cash Flow From Investing Activity -115-176-299-1,116-612-167-103-5-477-1,033
Capex -117-138-280-407-444-337-207-179-116-337
Net Investments 3-18-17-569-130-12736226-410-755
Others 0-19-3-140-3929668-534960
Cash Flow From Financing Activity 29154-48651-51-251-18635-363-247
Net Proceeds from Shares 03340896000000
Net Proceeds from Borrowing 1-129-140000000
Interest Paid -30-26-16-16-19-22-13-17-14-18
Dividend Paid -20-26-141-181-92-154-114-82-100-171
Others 771124-4860-75-59134-248-58
Net Cash Flow 791-1-16-110769-68
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)15.914.4133.2129.719.7512.7111.274.0615.6625.88
ROCE (%)14.8917.4939.2135.2823.7114.8213.994.8618.0630.08
Asset Turnover Ratio0.580.6710.730.570.460.440.450.540.69
PAT to CFO Conversion(x)0.740.730.710.671.040.910.680.281.190.87
Working Capital Days
Receivable Days76776592919484859486
Inventory Days9898626577961191289561
Payable Days252270164236267243152106133136

Natco Pharma Ltd Stock News

Natco Pharma Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Natco Pharma on 31-Oct-2024 16:01 is ₹1,404.2.
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 31-Oct-2024 16:01 the market cap of Natco Pharma stood at ₹25,130.
The latest P/E ratio of Natco Pharma as of 31-Oct-2024 16:01 is 16.34.
The latest P/B ratio of Natco Pharma as of 31-Oct-2024 16:01 is 4.03.
The 52-week high of Natco Pharma is ₹1,638.4 and the 52-week low is ₹725.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Natco Pharma is ₹3,758 ( 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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