Natco Pharma Ltd - Stock Valuation and Financial Performance

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

Natco Pharma Share Price

974.85 19.55 2.05%
as on 12-Apr'24 10:20

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):
13.66
Market Cap:
17,450.7 Cr.
52-wk low:
550.5
52-wk high:
1,107.9

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 12.9%14.6%13.4%31.4%27.2%17.8%11.6%10%3.2%14.5%-
Value Creation
Index
-0.10.10.01.31.00.3-0.1-0.3-0.80.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 7398251,0422,0202,1852,0951,9152,0521,9452,7073,828
Sales YoY Gr.-11.7%26.3%93.8%8.2%-4.1%-8.6%7.2%-5.2%39.2%-
Adj EPS 5.78.1928.837.233.924.522.87.337.971.3
YoY Gr.-41.6%11%221.9%29.1%-9%-27.7%-6.9%-68.1%420.6%-
BVPS (₹) 43.950.973.993.6165.2189.5206224.9233.4267.1307.4
Adj Net
Profit
94.31341565036876194464161336921,278
Cash Flow from Ops. 14492.711234646466941729946.5849-
Debt/CF from Ops. 1.73.410.60.40.60.80.98.70.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 15.5%4.4%12.2%39.2%
Adj EPS 23.4%0.4%15.7%420.6%
BVPS22.2%10.1%9%14.4%
Share Price 21.2% 11.5% 2.2% 69.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
1517.114.634.129.118.912.310.53.215.124.8
Op. Profit
Mgn %
24.32525.935.342.538.130.429.413.633.941.6
Net Profit
Mgn %
12.115.714.824.831.429.523.120.36.825.533.4
Debt to
Equity
0.30.40.10.10.10.10.10.10.10-
Working Cap
Days
194206230169252315381374339278148
Cash Conv.
Cycle
678279497696124152179145112

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 24.80%

Sales growth is growing at healthy rate in last 3 years 12.23%

Net Profit is growing at healthy rate in last 3 years 15.67%

Sales growth is good in last 4 quarters at 68.03%

No data to display

Latest Financials - Natco Pharma Ltd.

Standalone Consolidated
TTM EPS (₹) 67.7 71.3
TTM Sales (₹ Cr.) 3,385 3,828
BVPS (₹.) 295.2 307.4
Reserves (₹ Cr.) 5,251 5,470
P/BV 3.30 3.17
PE 14.40 13.66
From the Market
52 Week Low / High (₹) 550.45 / 1107.85
All Time Low / High (₹) 1.60 / 1188.95
Market Cap (₹ Cr.) 17,451
Equity (₹ Cr.) 35.8
Face Value (₹) 2
Industry PE 48

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales7398251,0422,0202,1852,0951,9152,0521,9452,707
Operating Expenses 5606207771,3371,2561,3001,3321,4481,6811,795
Manufacturing Costs121116149192239336306353430362
Material Costs233242271599411333354484528583
Employee Cost 113137180243326356375415445487
Other Costs 92124177303281275297197278364
Operating Profit 179206266683928795583604264912
Operating Profit Margin (%) 24.3%24.9%25.5%33.8%42.5%37.9%30.4%29.4%13.5%33.7%
Other Income 171510144013010710699129
Interest 37322319151922131815
Depreciation 304751546681100117143164
Exceptional Items 0-1500000000
Profit Before Tax 129126202624887825569580202862
Tax 3124814019218211113732147
Profit After Tax 98125154485695642458442170715
PAT Margin (%) 13.3%15.1%14.7%24.0%31.8%30.7%23.9%21.6%8.7%26.4%
Adjusted EPS (₹)6.28.19.027.937.735.325.324.29.339.2
Dividend Payout Ratio (%)16%12%14%24%22%18%27%22%48%14%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 7268461,2861,6343,0483,4583,7504,1044,2604,874
Share Capital 33333535373736373737
Reserves 6938131,2511,5993,0113,4223,7144,0684,2244,837
Minority Interest75544211200
Debt19426698222173386316266404165
Long Term Debt959700001000
Short Term Debt9916998222173386315266404165
Trade Payables110125276263269217255146162264
Others Liabilities 159142157195221240255274283355
Total Liabilities 1,1961,3841,8222,3183,7154,3034,5884,7925,1095,657

Fixed Assets

Gross Block8209409831,1591,4081,6952,1492,7023,1273,375
Accumulated Depreciation171226273326389467564679815948
Net Fixed Assets6497147108331,0191,2271,5842,0232,3122,427
CWIP 12412921233648063851822313064
Investments 22223277169112304308392
Inventories181220357349438529558798762743
Trade Receivables119192262475638506551413621856
Cash Equivalents 1113453618428066284206546
Others Assets1101132142568809551,198747771629
Total Assets 1,1961,3841,8222,3183,7154,3034,5884,7925,1095,657

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 1449311234646466941729947849
PBT 129134209624887825569580202862
Adjustment 66689110076145462124102
Changes in Working Capital -16-86-141-253-2959-98-213-23163
Tax Paid -35-24-46-126-205-179-108-130-48-178
Cash Flow From Investing Activity -109-115-176-299-1,116-612-167-103-5-477
Capex -110-117-138-280-407-444-337-207-179-116
Net Investments 13-1813-45-130-12736226-410
Others 00-19-33-665-3929668-5349
Cash Flow From Financing Activity -3529154-48651-51-251-18635-363
Net Proceeds from Shares 1090334089600000
Net Proceeds from Borrowing -421-129-14000000
Interest Paid -34-30-26-16-16-19-22-13-17-14
Dividend Paid -19-20-26-141-181-92-154-114-82-100
Others -48771124-4860-75-59134-248
Net Cash Flow 0791-1-16-110769
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)15.5815.914.4133.2129.719.7512.7111.274.0615.66
ROCE (%)18.0214.8917.4939.2135.2823.7114.8213.994.8618.06
Asset Turnover Ratio0.650.650.6710.730.570.460.440.450.54
PAT to CFO Conversion(x)1.470.740.730.710.671.040.910.680.281.19
Working Capital Days
Receivable Days61687765929194848594
Inventory Days8087986265779611912895
Payable Days169177270164236267243152106133

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 12-Apr-2024 10:20 is ₹974.9.
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 12-Apr-2024 10:20 the market cap of Natco Pharma stood at ₹17,450.7.
The latest P/E ratio of Natco Pharma as of 12-Apr-2024 10:20 is 14.40.
The latest P/B ratio of Natco Pharma as of 12-Apr-2024 10:20 is 3.30.
The 52-week high of Natco Pharma is ₹1,107.9 and the 52-week low is ₹550.5.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Natco Pharma is ₹3,385 ( 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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