Natco Pharma Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: March 8, 2025, 11:16 am

Market Cap	14,777 Cr.
Current Price	825
High / Low	1,639/757
Stock P/E	7.93
Book Value	399
Dividend Yield	1.15 %
ROCE	30.1 %
ROE	25.9 %
Face Value	2.00
PEG Ratio	0.23

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Natco Pharma Ltd

Competitors of Natco Pharma Ltd

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
MPS Pharmaa Ltd	6.71 Cr.	3.51	4.33/3.05		0.80	0.00 %	9.15 %	34.9 %	10.0
Gujarat Themis Biosyn Ltd	2,663 Cr.	244	390/192	50.6	20.5	0.27 %	45.0 %	33.8 %	1.00
Gujarat Terce Laboratories Ltd	53.1 Cr.	71.5	94.9/32.1	18.0	11.9	0.00 %	9.72 %	3.44 %	10.0
Gujarat Inject (Kerala) Ltd	38.0 Cr.	26.0	29.0/8.74	38.8	6.64	0.00 %	2.65 %	2.08 %	10.0
Godavari Drugs Ltd	70.4 Cr.	93.5	155/79.0	11.4	55.4	0.00 %	14.4 %	15.5 %	10.0
Industry Average	17,255.37 Cr	1,081.84		42.42	185.80	0.37%	16.00%	16.32%	6.27

All Competitor Stocks of Natco Pharma Ltd

Quarterly Result

Metric	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024
Sales	560	597	885	432	492	898	1,140	1,031	759	1,068	1,363	1,371	475
Expenses	459	615	489	337	387	559	612	573	490	571	558	567	436
Operating Profit	102	-19	395	95	106	339	528	458	268	497	805	804	39
OPM %	18%	-3%	45%	22%	22%	38%	46%	44%	35%	47%	59%	59%	8%
Other Income	30	14	34	20	21	29	20	29	37	42	48	64	176
Interest	5	7	4	4	4	3	4	4	5	6	5	4	4
Depreciation	36	38	40	42	42	41	44	44	44	56	44	46	47
Profit before tax	91	-50	386	70	81	324	500	440	256	478	804	818	164
Tax %	12%	2%	17%	19%	23%	15%	16%	16%	17%	19%	17%	17%	19%
Net Profit	80	-50	320	57	62	276	420	369	213	386	668	676	132
EPS in Rs	4.41	-2.77	17.55	3.11	3.41	15.11	23.47	20.60	11.88	21.57	37.32	37.81	7.43

Last Updated: February 28, 2025, 6:13 pm

Below is a detailed analysis of the quarterly data for Natco Pharma Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

For Sales, as of Dec 2024, the value is ₹475.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1,371.00 Cr. (Sep 2024) to ₹475.00 Cr., marking a decrease of 896.00 Cr..
For Expenses, as of Dec 2024, the value is ₹436.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 567.00 Cr. (Sep 2024) to ₹436.00 Cr., marking a decrease of 131.00 Cr..
For Operating Profit, as of Dec 2024, the value is ₹39.00 Cr.. The value appears to be declining and may need further review. It has decreased from 804.00 Cr. (Sep 2024) to ₹39.00 Cr., marking a decrease of 765.00 Cr..
For OPM %, as of Dec 2024, the value is 8.00%. The value appears to be declining and may need further review. It has decreased from 59.00% (Sep 2024) to 8.00%, marking a decrease of 51.00%.
For Other Income, as of Dec 2024, the value is ₹176.00 Cr.. The value appears strong and on an upward trend. It has increased from 64.00 Cr. (Sep 2024) to ₹176.00 Cr., marking an increase of ₹112.00 Cr..
For Interest, as of Dec 2024, the value is ₹4.00 Cr.. The value remains steady. There is no change compared to the previous period (Sep 2024) which recorded 4.00 Cr..
For Depreciation, as of Dec 2024, the value is ₹47.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 46.00 Cr. (Sep 2024) to ₹47.00 Cr., marking an increase of ₹1.00 Cr..
For Profit before tax, as of Dec 2024, the value is ₹164.00 Cr.. The value appears to be declining and may need further review. It has decreased from 818.00 Cr. (Sep 2024) to ₹164.00 Cr., marking a decrease of 654.00 Cr..
For Tax %, as of Dec 2024, the value is 19.00%. The value appears to be increasing, which may not be favorable. It has increased from 17.00% (Sep 2024) to 19.00%, marking an increase of 2.00%.
For Net Profit, as of Dec 2024, the value is ₹132.00 Cr.. The value appears to be declining and may need further review. It has decreased from 676.00 Cr. (Sep 2024) to ₹132.00 Cr., marking a decrease of 544.00 Cr..
For EPS in Rs, as of Dec 2024, the value is 7.43. The value appears to be declining and may need further review. It has decreased from ₹37.81 (Sep 2024) to 7.43, marking a decrease of ₹30.38.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 6, 2025, 3:24 pm

Metric	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	661	739	825	1,042	2,020	2,185	2,094	1,915	2,052	1,945	2,707	3,999	4,277
Expenses	511	560	615	777	1,337	1,256	1,300	1,332	1,446	1,681	1,772	2,245	2,132
Operating Profit	150	179	210	266	683	928	795	583	606	264	936	1,754	2,145
OPM %	23%	24%	25%	25%	34%	42%	38%	30%	30%	14%	35%	44%	50%
Other Income	1	17	0	12	14	40	130	107	104	99	105	126	330
Interest	26	37	32	23	18	15	19	22	13	18	14	19	20
Depreciation	22	30	47	51	54	66	81	100	117	143	164	187	192
Profit before tax	102	129	132	204	624	887	825	569	580	202	862	1,674	2,263
Tax %	36%	24%	1%	24%	22%	22%	22%	19%	24%	16%	17%	17%
Net Profit	66	98	130	156	485	695	642	458	442	170	715	1,388	1,864
EPS in Rs	4.58	6.21	8.10	9.02	27.88	37.74	35.24	25.31	24.18	9.31	39.18	77.51	104.13
Dividend Payout %	17%	16%	12%	14%	24%	22%	18%	27%	22%	48%	14%	12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	48.48%	32.65%	20.00%	210.90%	43.30%	-7.63%	-28.66%	-3.49%	-61.54%	320.59%	94.13%
Change in YoY Net Profit Growth (%)	0.00%	-15.83%	-12.65%	190.90%	-167.60%	-50.92%	-21.03%	25.17%	-58.05%	382.13%	-226.46%

Natco Pharma Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	18%
5 Years:	14%
3 Years:	25%
TTM:	12%

Compounded Profit Growth
10 Years:	30%
5 Years:	17%
3 Years:	49%
TTM:	46%

Stock Price CAGR
10 Years:	6%
5 Years:	7%
3 Years:	-2%
1 Year:	-19%

Return on Equity
10 Years:	17%
5 Years:	14%
3 Years:	16%
Last Year:	26%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:00 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	31	33	33	35	35	37	36	36	36	36	36	36	36
Reserves	502	693	813	1,261	1,614	3,035	3,452	3,737	4,085	4,227	4,837	5,817	7,114
Borrowings	338	240	312	113	222	173	386	316	268	416	167	371	208
Other Liabilities	209	229	226	413	446	470	428	498	403	430	617	682	886
Total Liabilities	1,080	1,196	1,384	1,822	2,318	3,715	4,303	4,588	4,792	5,109	5,657	6,906	8,245
Fixed Assets	583	645	710	710	833	1,019	1,227	1,584	2,023	2,312	2,427	2,491	2,541
CWIP	106	124	129	212	336	480	638	518	223	130	64	137	234
Investments	2	2	2	22	32	76	169	112	304	308	392	539	643
Other Assets	389	425	543	878	1,116	2,140	2,270	2,373	2,242	2,360	2,774	3,739	4,826
Total Assets	1,080	1,196	1,384	1,822	2,318	3,715	4,303	4,588	4,792	5,109	5,657	6,906	8,245

Below is a detailed analysis of the balance sheet data for Natco Pharma Ltd based on the most recent figures (Sep 2024) and their trends compared to the previous period:

For Equity Capital, as of Sep 2024, the value is ₹36.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded ₹36.00 Cr..
For Reserves, as of Sep 2024, the value is ₹7,114.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹5,817.00 Cr. (Mar 2024) to ₹7,114.00 Cr., marking an increase of 1,297.00 Cr..
For Borrowings, as of Sep 2024, the value is ₹208.00 Cr.. The value appears to be improving (decreasing). Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has decreased from ₹371.00 Cr. (Mar 2024) to ₹208.00 Cr., marking a decrease of 163.00 Cr..
For Other Liabilities, as of Sep 2024, the value is ₹886.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from ₹682.00 Cr. (Mar 2024) to ₹886.00 Cr., marking an increase of 204.00 Cr..
For Total Liabilities, as of Sep 2024, the value is ₹8,245.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from ₹6,906.00 Cr. (Mar 2024) to ₹8,245.00 Cr., marking an increase of 1,339.00 Cr..
For Fixed Assets, as of Sep 2024, the value is ₹2,541.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹2,491.00 Cr. (Mar 2024) to ₹2,541.00 Cr., marking an increase of 50.00 Cr..
For CWIP, as of Sep 2024, the value is ₹234.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹137.00 Cr. (Mar 2024) to ₹234.00 Cr., marking an increase of 97.00 Cr..
For Investments, as of Sep 2024, the value is ₹643.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹539.00 Cr. (Mar 2024) to ₹643.00 Cr., marking an increase of 104.00 Cr..
For Other Assets, as of Sep 2024, the value is ₹4,826.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹3,739.00 Cr. (Mar 2024) to ₹4,826.00 Cr., marking an increase of 1,087.00 Cr..
For Total Assets, as of Sep 2024, the value is ₹8,245.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹6,906.00 Cr. (Mar 2024) to ₹8,245.00 Cr., marking an increase of 1,339.00 Cr..

Notably, the Reserves (₹7,114.00 Cr.) exceed the Borrowings (208.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	61	144	93	112	346	464	669	417	299	46	849	1,212
Cash from Investing Activity +	-111	-108	-120	-176	-299	-1,116	-611	-175	-107	4	-465	-1,026
Cash from Financing Activity +	26	-35	29	154	-48	651	-51	-251	-186	35	-363	-247
Net Cash Flow	-24	0	2	90	-1	-2	7	-8	6	85	21	-62

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-188.00	-61.00	-102.00	153.00	461.00	755.00	409.00	267.00	338.00	-152.00	769.00	-370.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	72	59	85	92	86	106	88	105	73	116	115	109
Inventory Days	220	283	331	482	213	389	545	534	570	496	432	357
Days Payable	159	172	189	372	160	239	224	244	104	105	153	120
Cash Conversion Cycle	132	170	228	202	138	257	410	395	539	507	394	345
Working Capital Days	67	71	99	131	111	244	275	355	294	333	220	225
ROCE %	17%	18%	17%	18%	39%	35%	23%	14%	13%	4%	18%	30%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024
Promoters	48.81%	48.80%	48.80%	48.82%	48.84%	49.76%	49.71%	49.71%	49.71%	49.71%	49.62%	49.62%
FIIs	11.94%	11.65%	11.67%	11.73%	11.91%	11.03%	12.82%	13.72%	16.14%	17.45%	17.51%	17.94%
DIIs	16.15%	15.30%	14.30%	14.93%	15.38%	15.15%	14.01%	11.26%	9.69%	7.86%	6.75%	5.59%
Public	23.10%	24.25%	25.23%	24.53%	23.87%	24.08%	23.48%	25.32%	24.46%	24.99%	26.13%	26.88%
No. of Shareholders	85,828	92,449	1,21,336	1,35,397	1,53,663	1,55,181	1,63,753	2,07,571	2,28,467	2,51,485	3,02,944	3,45,332

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Mirae Asset Large & Midcap Fund	2,614,448	0.68	207.2	1,162,678	2025-03-10	124.86%
Mirae Asset Midcap Fund	1,924,853	1.19	152.54	1,162,678	2025-03-10	65.55%
ICICI Prudential Value Discovery Fund	1,162,678	0.26	92.14	1,162,678	2025-03-10	0%
Tata Equity P/E Fund - Regular Plan	900,000	1.1	71.33	1,162,678	2025-03-10	-22.59%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%	900,000	1.1	71.33	1,162,678	2025-03-10	-22.59%
Tata Small Cap Fund	900,000	1.12	71.33	1,162,678	2025-03-10	-22.59%
SBI Magnum Midcap Fund	750,551	0.41	59.48	1,162,678	2025-03-10	-35.45%
Mahindra Manulife Small Cap Fund	348,385	1.08	27.61	1,162,678	2025-03-10	-70.04%
Mirae Asset Healthcare Fund	216,673	0.87	17.17	1,162,678	2025-03-10	-81.36%
Bandhan Multi Cap Fund	200,000	0.95	15.85	1,162,678	2025-03-10	-82.8%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	2.00	2.00	2.00	2.00	2.00
Basic EPS (Rs.)	77.34	39.18	9.32	24.20	25.33
Diluted EPS (Rs.)	77.34	39.18	9.32	24.16	25.26
Cash EPS (Rs.)	87.99	48.17	17.13	30.65	30.65
Book Value[Excl.RevalReserv]/Share (Rs.)	326.99	267.06	233.62	225.94	207.95
Book Value[Incl.RevalReserv]/Share (Rs.)	326.99	267.06	233.62	225.94	207.95
Revenue From Operations / Share (Rs.)	223.40	148.33	106.56	112.44	105.22
PBDIT / Share (Rs.)	105.00	57.00	19.86	38.89	37.91
PBIT / Share (Rs.)	94.56	48.02	12.05	32.49	32.43
PBT / Share (Rs.)	93.49	47.23	11.08	31.76	31.25
Net Profit / Share (Rs.)	77.56	39.19	9.31	24.24	25.17
NP After MI And SOA / Share (Rs.)	77.56	39.19	9.31	24.16	25.32
PBDIT Margin (%)	47.00	38.42	18.63	34.58	36.03
PBIT Margin (%)	42.33	32.37	11.30	28.89	30.81
PBT Margin (%)	41.85	31.83	10.39	28.24	29.69
Net Profit Margin (%)	34.71	26.42	8.74	21.55	23.92
NP After MI And SOA Margin (%)	34.71	26.42	8.74	21.48	24.06
Return on Networth / Equity (%)	23.71	14.67	3.98	10.69	12.21
Return on Capital Employeed (%)	28.52	17.61	4.99	13.89	15.12
Return On Assets (%)	20.10	12.64	3.32	9.20	10.04
Total Debt / Equity (X)	0.06	0.03	0.09	0.06	0.08
Asset Turnover Ratio (%)	0.63	0.50	0.36	0.35	0.40
Current Ratio (X)	4.14	4.39	3.52	4.45	3.39
Quick Ratio (X)	3.42	3.30	2.44	2.93	2.58
Inventory Turnover Ratio (X)	0.72	0.63	0.69	0.56	0.62
Dividend Payout Ratio (NP) (%)	12.25	14.03	48.29	25.81	27.64
Dividend Payout Ratio (CP) (%)	10.80	11.42	26.26	20.40	22.72
Earning Retention Ratio (%)	87.75	85.97	51.71	74.19	72.36
Cash Earning Retention Ratio (%)	89.20	88.58	73.74	79.60	77.28
Interest Coverage Ratio (X)	97.89	71.74	20.48	53.37	32.09
Interest Coverage Ratio (Post Tax) (X)	73.31	50.33	10.60	34.26	22.31
Enterprise Value (Cr.)	16442.15	9905.31	14018.63	15043.09	9473.03
EV / Net Operating Revenue (X)	4.11	3.66	7.21	7.33	4.95
EV / EBITDA (X)	8.75	9.52	38.67	21.19	13.73
MarketCap / Net Operating Revenue (X)	4.26	3.80	7.11	7.34	4.81
Retention Ratios (%)	87.74	85.96	51.70	74.18	72.35
Price / BV (X)	2.91	2.11	3.24	3.65	2.44
Price / Net Operating Revenue (X)	4.26	3.80	7.11	7.34	4.81
EarningsYield	0.08	0.06	0.01	0.02	0.05

After reviewing the key financial ratios for Natco Pharma Ltd, here is a detailed analysis based on the latest available data and recent trends:

For FaceValue, as of Mar 24, the value is 2.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 2.00.
For Basic EPS (Rs.), as of Mar 24, the value is 77.34. This value is within the healthy range. It has increased from 39.18 (Mar 23) to 77.34, marking an increase of 38.16.
For Diluted EPS (Rs.), as of Mar 24, the value is 77.34. This value is within the healthy range. It has increased from 39.18 (Mar 23) to 77.34, marking an increase of 38.16.
For Cash EPS (Rs.), as of Mar 24, the value is 87.99. This value is within the healthy range. It has increased from 48.17 (Mar 23) to 87.99, marking an increase of 39.82.
For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 326.99. It has increased from 267.06 (Mar 23) to 326.99, marking an increase of 59.93.
For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 326.99. It has increased from 267.06 (Mar 23) to 326.99, marking an increase of 59.93.
For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 223.40. It has increased from 148.33 (Mar 23) to 223.40, marking an increase of 75.07.
For PBDIT / Share (Rs.), as of Mar 24, the value is 105.00. This value is within the healthy range. It has increased from 57.00 (Mar 23) to 105.00, marking an increase of 48.00.
For PBIT / Share (Rs.), as of Mar 24, the value is 94.56. This value is within the healthy range. It has increased from 48.02 (Mar 23) to 94.56, marking an increase of 46.54.
For PBT / Share (Rs.), as of Mar 24, the value is 93.49. This value is within the healthy range. It has increased from 47.23 (Mar 23) to 93.49, marking an increase of 46.26.
For Net Profit / Share (Rs.), as of Mar 24, the value is 77.56. This value is within the healthy range. It has increased from 39.19 (Mar 23) to 77.56, marking an increase of 38.37.
For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 77.56. This value is within the healthy range. It has increased from 39.19 (Mar 23) to 77.56, marking an increase of 38.37.
For PBDIT Margin (%), as of Mar 24, the value is 47.00. This value is within the healthy range. It has increased from 38.42 (Mar 23) to 47.00, marking an increase of 8.58.
For PBIT Margin (%), as of Mar 24, the value is 42.33. This value exceeds the healthy maximum of 20. It has increased from 32.37 (Mar 23) to 42.33, marking an increase of 9.96.
For PBT Margin (%), as of Mar 24, the value is 41.85. This value is within the healthy range. It has increased from 31.83 (Mar 23) to 41.85, marking an increase of 10.02.
For Net Profit Margin (%), as of Mar 24, the value is 34.71. This value exceeds the healthy maximum of 10. It has increased from 26.42 (Mar 23) to 34.71, marking an increase of 8.29.
For NP After MI And SOA Margin (%), as of Mar 24, the value is 34.71. This value exceeds the healthy maximum of 20. It has increased from 26.42 (Mar 23) to 34.71, marking an increase of 8.29.
For Return on Networth / Equity (%), as of Mar 24, the value is 23.71. This value is within the healthy range. It has increased from 14.67 (Mar 23) to 23.71, marking an increase of 9.04.
For Return on Capital Employeed (%), as of Mar 24, the value is 28.52. This value is within the healthy range. It has increased from 17.61 (Mar 23) to 28.52, marking an increase of 10.91.
For Return On Assets (%), as of Mar 24, the value is 20.10. This value is within the healthy range. It has increased from 12.64 (Mar 23) to 20.10, marking an increase of 7.46.
For Total Debt / Equity (X), as of Mar 24, the value is 0.06. This value is within the healthy range. It has increased from 0.03 (Mar 23) to 0.06, marking an increase of 0.03.
For Asset Turnover Ratio (%), as of Mar 24, the value is 0.63. It has increased from 0.50 (Mar 23) to 0.63, marking an increase of 0.13.
For Current Ratio (X), as of Mar 24, the value is 4.14. This value exceeds the healthy maximum of 3. It has decreased from 4.39 (Mar 23) to 4.14, marking a decrease of 0.25.
For Quick Ratio (X), as of Mar 24, the value is 3.42. This value exceeds the healthy maximum of 2. It has increased from 3.30 (Mar 23) to 3.42, marking an increase of 0.12.
For Inventory Turnover Ratio (X), as of Mar 24, the value is 0.72. This value is below the healthy minimum of 4. It has increased from 0.63 (Mar 23) to 0.72, marking an increase of 0.09.
For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 12.25. This value is below the healthy minimum of 20. It has decreased from 14.03 (Mar 23) to 12.25, marking a decrease of 1.78.
For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 10.80. This value is below the healthy minimum of 20. It has decreased from 11.42 (Mar 23) to 10.80, marking a decrease of 0.62.
For Earning Retention Ratio (%), as of Mar 24, the value is 87.75. This value exceeds the healthy maximum of 70. It has increased from 85.97 (Mar 23) to 87.75, marking an increase of 1.78.
For Cash Earning Retention Ratio (%), as of Mar 24, the value is 89.20. This value exceeds the healthy maximum of 70. It has increased from 88.58 (Mar 23) to 89.20, marking an increase of 0.62.
For Interest Coverage Ratio (X), as of Mar 24, the value is 97.89. This value is within the healthy range. It has increased from 71.74 (Mar 23) to 97.89, marking an increase of 26.15.
For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 73.31. This value is within the healthy range. It has increased from 50.33 (Mar 23) to 73.31, marking an increase of 22.98.
For Enterprise Value (Cr.), as of Mar 24, the value is 16,442.15. It has increased from 9,905.31 (Mar 23) to 16,442.15, marking an increase of 6,536.84.
For EV / Net Operating Revenue (X), as of Mar 24, the value is 4.11. This value exceeds the healthy maximum of 3. It has increased from 3.66 (Mar 23) to 4.11, marking an increase of 0.45.
For EV / EBITDA (X), as of Mar 24, the value is 8.75. This value is within the healthy range. It has decreased from 9.52 (Mar 23) to 8.75, marking a decrease of 0.77.
For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 4.26. This value exceeds the healthy maximum of 3. It has increased from 3.80 (Mar 23) to 4.26, marking an increase of 0.46.
For Retention Ratios (%), as of Mar 24, the value is 87.74. This value exceeds the healthy maximum of 70. It has increased from 85.96 (Mar 23) to 87.74, marking an increase of 1.78.
For Price / BV (X), as of Mar 24, the value is 2.91. This value is within the healthy range. It has increased from 2.11 (Mar 23) to 2.91, marking an increase of 0.80.
For Price / Net Operating Revenue (X), as of Mar 24, the value is 4.26. This value exceeds the healthy maximum of 3. It has increased from 3.80 (Mar 23) to 4.26, marking an increase of 0.46.
For EarningsYield, as of Mar 24, the value is 0.08. This value is below the healthy minimum of 5. It has increased from 0.06 (Mar 23) to 0.08, marking an increase of 0.02.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Natco Pharma Ltd as of March 12, 2025 is: ₹663.13

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of March 12, 2025, Natco Pharma Ltd is Overvalued by 19.62% compared to the current share price 825.00

Intrinsic Value of Natco Pharma Ltd as of March 12, 2025 is: 888.02

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of March 12, 2025, Natco Pharma Ltd is Undervalued by 7.64% compared to the current share price 825.00

Last 5 Year EPS CAGR: 33.91%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 20.50%, which is a positive sign. The company has higher reserves (3,168.23 cr) compared to borrowings (271.54 cr), indicating strong financial stability. The company has shown consistent growth in sales (172.69 cr) and profit (393.77 cr) over the years.	The stock has a high average Working Capital Days of 202.08, which may not be favorable. The stock has a high average Cash Conversion Cycle of 309.75, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Natco Pharma Ltd:
1. Net Profit Margin: 34.71%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 28.52% (Industry Average ROCE: 16%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 23.71% (Industry Average ROE: 16.32%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 73.31
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 3.42
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 7.93 (Industry average Stock P/E: 42.42)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.06
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

No data availabale for About the Company

INDUSTRY	ADDRESS	CONTACT
Industry not found	Address not found	Contact not found

Management Data not Available

FAQ

What is the latest intrinsic value of Natco Pharma Ltd?

The latest intrinsic value of Natco Pharma Ltd as on 12 March 2025 is ₹663.13, which is 19.62% lower than the current market price of 825.00, indicating the stock is overvalued by 19.62%. The intrinsic value of Natco Pharma Ltd is calculated using PE ratio method. The stock has a market capitalization of ₹14,777 Cr. and recorded a high/low of ₹1,639/757 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹7,114 Cr and total liabilities of ₹8,245 Cr.

What is the Market Cap of Natco Pharma Ltd?

The Market Cap of Natco Pharma Ltd is 14,777 Cr..

What is the current Stock Price of Natco Pharma Ltd as on 12 March 2025?

The current stock price of Natco Pharma Ltd as on 12 March 2025 is ₹825.

What is the High / Low of Natco Pharma Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Natco Pharma Ltd stocks is ₹1,639/757.

What is the Stock P/E of Natco Pharma Ltd?

The Stock P/E of Natco Pharma Ltd is 7.93.

What is the Book Value of Natco Pharma Ltd?

The Book Value of Natco Pharma Ltd is 399.

What is the Dividend Yield of Natco Pharma Ltd?

The Dividend Yield of Natco Pharma Ltd is 1.15 %.

What is the ROCE of Natco Pharma Ltd?

The ROCE of Natco Pharma Ltd is 30.1 %.

What is the ROE of Natco Pharma Ltd?

The ROE of Natco Pharma Ltd is 25.9 %.

What is the Face Value of Natco Pharma Ltd?

The Face Value of Natco Pharma Ltd is 2.00.