Is Natco Pharma a good quality company?

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

Is Natco Pharma 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 Somewhat Undervalued zone .

What is Natco Pharma share price return in the past 10 years?

Natco Pharma Ltd share price has appreciated 16.9% annually (CAGR) over the past ten years.

Is Natco Pharma 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.

Natco Pharma Ltd - Stock Valuation and Financial Performance

Name: Natco Pharma
Brand: Natco Pharma

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

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Natco Pharma Share Price

₹1,429.50 14.70 1.04%
as on 03-Dec'24 16:59

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

Standalone Basis ^P Consolidated Basis ^P

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

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	14.9%	17.5%	39.2%	35.3%	23.7%	14.8%	14%	4.9%	18.1%	30.1%	-
Value Creation Index ⓘ	0.1	0.3	1.9	1.6	0.8	0.1	0.0	-0.6	0.3	1.2	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	730	1,042	2,020	2,185	2,095	1,915	2,052	1,945	2,707	3,999	4,561
Sales YoY Gr.	-	42.7%	93.8%	8.2%	-4.1%	-8.6%	7.2%	-5.2%	39.2%	47.7%	-
Adj EPS ⓘ	8.1	9	27.7	37.2	33.9	24.5	22.8	7.3	37.9	77.1	108.6
YoY Gr.	-	11%	209%	34.4%	-9%	-27.7%	-6.9%	-68.1%	420.6%	103.3%	-
BVPS (₹) ⓘ	50.9	73.9	93.6	165.2	189.5	206	224.9	233.4	267.1	327	399.2
Adj Net Profit ⓘ	134	156	483	687	619	446	416	133	692	1,380	1,945
Cash Flow from Ops. ⓘ	92.7	112	346	464	669	417	299	46.5	849	1,212	-
Debt/CF from Ops. ⓘ	3.4	1	0.6	0.4	0.6	0.8	0.9	8.7	0.2	0.3	-

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%
BVPSⓘ	23%	11.5%	13.3%	22.4%
Share Price	16.9%	19.7%	19.1%	82.1%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	17.1	14.6	32.8	29.1	18.9	12.3	10.5	3.2	15.1	25.7	29.9
Op. Profit Mgn % ⓘ	28.3	25.9	33.8	42.5	38.1	30.4	29.4	13.6	33.9	43.9	52.1
Net Profit Mgn % ⓘ	17.8	14.8	23.8	31.4	29.5	23.1	20.3	6.8	25.5	34.5	42.6
Debt to Equity ⓘ	0.4	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0	0.1	0
Working Cap Days ⓘ	232	230	169	252	315	381	374	339	278	210	167
Cash Conv. Cycle ⓘ	89	79	51	76	96	124	152	179	145	102	130

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 29.90%

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 31.36%

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Latest Financials - Natco Pharma Ltd.

	Standalone	Consolidated
TTM EPS (₹)	102.7	108.6
TTM Sales (₹ Cr.)	4,120	4,561
BVPS (₹.) ⓘ	382	399.2
Reserves (₹ Cr.) ⓘ	6,807	7,114
P/BV ⓘ	3.70	3.54
PE ⓘ	13.78	13.03

From the Market
52 Week Low / High (₹)	752.55 / 1638.35
All Time Low / High (₹)	1.60 / 1638.35
Market Cap (₹ Cr.)	25,340
Equity (₹ Cr.)	35.8
Face Value (₹)	2
Industry PE ⓘ	44.7

Management X-Ray of Natco Pharma:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

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

Valuation of Natco Pharma

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Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Natco Pharma

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	730	1,042	2,020	2,185	2,095	1,915	2,052	1,945	2,707	3,999
Operating Expenses ⓘ	524	777	1,337	1,256	1,300	1,332	1,448	1,681	1,795	2,247
Manufacturing Costs	111	149	220	239	336	306	353	430	362	457
Material Costs	170	271	599	411	333	354	484	528	583	668
Employee Cost	128	180	243	326	356	375	415	445	487	525
Other Costs ⓘ	116	177	274	281	275	297	197	278	364	597
Operating Profit ⓘ	206	266	683	928	795	583	604	264	912	1,751
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 ⓘ	14	10	14	40	130	107	106	99	129	128
Interest ⓘ	32	23	19	15	19	22	13	18	15	19
Depreciation ⓘ	47	51	54	66	81	100	117	143	164	187
Exceptional Items ⓘ	-15	0	0	0	0	0	0	0	0	0
Profit Before Tax ⓘ	126	202	624	887	825	569	580	202	862	1,674
Tax ⓘ	2	48	140	192	182	111	137	32	147	285
Profit After Tax	125	154	485	695	642	458	442	170	715	1,388
PAT Margin (%)	17.1%	14.7%	24.0%	31.8%	30.7%	23.9%	21.6%	8.7%	26.4%	34.7%
Adjusted EPS (₹)	8.1	9.0	27.9	37.7	35.3	25.3	24.2	9.3	39.2	77.6
Dividend Payout Ratio (%)	12%	14%	24%	22%	18%	27%	22%	48%	14%	12%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	846	1,286	1,634	3,048	3,458	3,750	4,104	4,260	4,874	5,853
Share Capital ⓘ	33	35	35	37	37	36	37	37	37	36
Reserves ⓘ	813	1,251	1,599	3,011	3,422	3,714	4,068	4,224	4,837	5,817
Minority Interest	5	5	4	4	2	11	2	0	0	0
Debt	266	98	222	173	386	314	266	404	165	363
Long Term Debt	97	0	0	0	0	0	0	0	0	0
Short Term Debt	169	98	222	173	386	314	266	404	165	363
Trade Payables	125	276	263	269	217	255	146	162	264	236
Others Liabilities ⓘ	142	157	195	221	240	257	274	283	355	435
Total Liabilities ⓘ	1,384	1,822	2,318	3,715	4,303	4,588	4,792	5,109	5,657	6,887
Fixed Assets
Gross Block	940	983	1,159	1,408	1,695	2,149	2,702	3,127	3,375	3,603
Accumulated Depreciation	226	273	326	389	467	564	679	815	948	1,112
Net Fixed Assetsⓘ	714	710	833	1,019	1,227	1,584	2,023	2,312	2,427	2,491
CWIP ⓘ	129	212	336	480	638	518	223	130	64	137
Investmentsⓘ	2	22	32	77	169	112	304	308	392	539
Inventories	220	357	349	438	529	558	798	762	743	701
Trade Receivables	192	262	475	638	506	551	413	621	856	1,189
Cash Equivalents	13	45	36	184	280	66	284	206	546	953
Others Assetsⓘ	113	214	256	880	955	1,198	747	771	629	877
Total Assets ⓘ	1,384	1,822	2,318	3,715	4,303	4,588	4,792	5,109	5,657	6,887

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	93	112	346	464	669	417	299	47	849	1,212
PBT ⓘ	134	209	624	887	825	569	580	202	862	1,674
Adjustment ⓘ	68	91	100	76	14	54	62	124	102	134
Changes in Working Capital ⓘ	-86	-141	-253	-295	9	-98	-213	-231	63	-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	-127	36	226	-410	-755
Others ⓘ	0	-19	-3	-140	-39	296	68	-53	49	60
Cash Flow From Financing Activityⓘ	29	154	-48	651	-51	-251	-186	35	-363	-247
Net Proceeds from Shares ⓘ	0	334	0	896	0	0	0	0	0	0
Net Proceeds from Borrowing ⓘ	1	-129	-14	0	0	0	0	0	0	0
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 ⓘ	77	1	124	-48	60	-75	-59	134	-248	-58
Net Cash Flow ⓘ	7	91	-1	-1	6	-1	10	76	9	-68

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	15.9	14.41	33.21	29.7	19.75	12.71	11.27	4.06	15.66	25.88
ROCE (%)	14.89	17.49	39.21	35.28	23.71	14.82	13.99	4.86	18.06	30.08
Asset Turnover Ratio	0.58	0.67	1	0.73	0.57	0.46	0.44	0.45	0.54	0.69
PAT to CFO Conversion(x)	0.74	0.73	0.71	0.67	1.04	0.91	0.68	0.28	1.19	0.87
Working Capital Days
Receivable Days	76	77	65	92	91	94	84	85	94	86
Inventory Days	98	98	62	65	77	96	119	128	95	61
Payable Days	252	270	164	236	267	243	152	106	133	136

Natco Pharma Ltd Stock News

Natco Pharma Ltd FAQs

What is the share price of Natco Pharma?

Company share prices are keep on changing according to the market conditions. The closing price of Natco Pharma on 03-Dec-2024 16:59 is ₹1,429.5.

What is the market cap of Natco Pharma?

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 03-Dec-2024 16:59 the market cap of Natco Pharma stood at ₹25,340.5.

What is the P/E ratio of Natco Pharma?

The latest P/E ratio of Natco Pharma as of 03-Dec-2024 16:59 is 13.78.

What is the P/B ratio of Natco Pharma?

The latest P/B ratio of Natco Pharma as of 03-Dec-2024 16:59 is 3.70.

What is the 52-week high and low of Natco Pharma?

The 52-week high of Natco Pharma is ₹1,638.4 and the 52-week low is ₹752.5.

What is the TTM revenue of Natco Pharma?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Natco Pharma is ₹4,120 ( 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.