Fundamental Analysis of Natco Pharma Ltd

About the Company - Natco Pharma Ltd

Natco Pharma Ltd. is a Public Limited Listed company incorporated on 19/09/1981 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L24230TG1981PLC003201 and registration number is 003201. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 1767.80 Cr. and Equity Capital is Rs. 36.50 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Pharmaceuticals	NATCO House, Road # 2, Hyderabad Telangana 500034	investors@natcopharma.co.in http://www.natcopharma.co.in

Management
Name	Position Held
Mr. G S Murthy	Chairman & Ind.Director
Mr. V C Nannapaneni	Managing Director
Mr. Rajeev Nannapaneni	Director & CEO
Mr. T V Rao	Independent Director
Mr. D G Prasad	Independent Director
Dr. M U R Naidu	Independent Director
Dr. Leela Digumarti	Independent Director
Mr. P S R K Prasad	Director & Exe. VP (Corp. Engg. Services)
Dr. Linga Rao Donthineni	Director & President (Tech. Affairs)
Dr. Pavan Ganapati Bhat	Director

Basic Stock Data of Natco Pharma Ltd

Last Updated: July 6, 2024, 11:48 am

Market Cap	21,921 Cr.
Current Price	1,224
High / Low	1,259/667
Stock P/E	15.8
Book Value	327
Dividend Yield	0.78 %
ROCE	30.0 %
ROE	25.9 %
Face Value	2.00
PEG Ratio	0.80

Competitors of Natco Pharma Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Syncom Formulations (India) Ltd	1,207 Cr.	12.8	18.6/7.09	51.1	3.05	0.00 %	10.4 %	8.72 %	1.00
SMS Lifesciences India Ltd	261 Cr.	863	948/464	41.3	585	0.17 %	6.86 %	3.66 %	10.0
Sequent Scientific Ltd	3,285 Cr.	132	156/86.0		26.3	0.00 %	0.90 %	2.46 %	2.00
Astrazeneca Pharma India Ltd	17,239 Cr.	6,896	7,572/3,650	115	285	0.35 %	31.1 %	23.0 %	2.00
Jagsonpal Pharmaceuticals Ltd	881 Cr.	333	515/270	39.2	70.9	1.50 %	17.0 %	13.0 %	5.00
Industry Average	16,630.01 Cr	1,292.61		49.14	207.45	0.35%	17.00%	16.33%	6.53

Natco Pharma Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	355	331	410	377	560	597	885	432	492	898	1,140	1,031	759
Expenses	273	255	300	307	459	615	489	337	387	559	612	573	490
Operating Profit	82	76	110	70	102	-19	395	95	106	339	528	458	268
OPM %	23%	23%	27%	19%	18%	-3%	45%	22%	22%	38%	46%	44%	35%
Other Income	31	28	17	38	30	14	34	20	21	29	20	29	37
Interest	3	4	2	4	5	7	4	4	4	3	4	4	5
Depreciation	30	30	34	35	36	38	40	42	42	41	44	44	44
Profit before tax	80	71	91	70	91	-50	386	70	81	324	500	440	256
Tax %	21%	25%	18%	7%	12%	-2%	17%	19%	23%	15%	16%	16%	17%
Net Profit	63	53	75	65	80	-50	320	57	62	276	420	369	213
EPS in Rs	3.44	2.91	4.11	3.57	4.41	-2.77	17.55	3.11	3.41	15.11	23.47	20.60	11.88

Last Updated: April 10, 2024, 4:19 am

Natco Pharma Ltd Quarterly Chart

Natco Pharma Ltd Profit & Loss

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	524	661	739	825	1,042	2,020	2,185	2,094	1,915	2,052	1,945	2,707	3,562
Expenses	414	511	560	615	777	1,337	1,256	1,300	1,332	1,446	1,681	1,772	2,131
Operating Profit	109	150	179	210	266	683	928	795	583	606	264	936	1,431
OPM %	21%	23%	24%	25%	25%	34%	42%	38%	30%	30%	14%	35%	40%
Other Income	9	1	17	0	12	14	40	130	107	104	99	105	99
Interest	23	26	37	32	23	18	15	19	22	13	18	14	15
Depreciation	16	22	30	47	51	54	66	81	100	117	143	164	170
Profit before tax	80	102	129	132	204	624	887	825	569	580	202	862	1,345
Tax %	26%	36%	24%	1%	24%	22%	22%	22%	19%	24%	16%	17%
Net Profit	58	66	98	130	156	485	695	642	458	442	170	715	1,127
EPS in Rs	3.83	4.58	6.21	8.10	9.02	27.88	37.74	35.24	25.31	24.18	9.31	39.18	62.59
Dividend Payout %	16%	17%	16%	12%	14%	24%	22%	18%	27%	22%	48%	14%

Natco Pharma Ltd Profit & Loss Yearly Chart

Natco Pharma Ltd Growth

Compounded Sales Growth
10 Years:	18%
5 Years:	14%
3 Years:	25%
TTM:	48%

Compounded Profit Growth
10 Years:	30%
5 Years:	17%
3 Years:	49%
TTM:	98%

Stock Price CAGR
10 Years:	20%
5 Years:	18%
3 Years:	1%
1 Year:	72%

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

Last Updated: June 29, 2024, 1:53 pm

Natco Pharma Ltd Balance Sheet

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	31	31	33	33	35	35	37	36	36	36	36	36	36
Reserves	442	502	693	813	1,261	1,614	3,035	3,452	3,737	4,085	4,227	4,837	5,258
Borrowings	259	338	240	312	113	222	173	386	316	268	416	167	248
Other Liabilities	173	209	229	226	413	446	470	428	498	403	430	617	713
Total Liabilities	905	1,080	1,196	1,384	1,822	2,318	3,715	4,303	4,588	4,792	5,109	5,657	6,254
Fixed Assets	320	583	645	710	710	833	1,019	1,227	1,584	2,023	2,312	2,427	2,468
CWIP	164	106	124	129	212	336	480	638	518	223	130	64	84
Investments	63	2	2	2	22	32	76	169	112	304	308	392	387
Other Assets	359	389	425	543	878	1,116	2,140	2,270	2,373	2,242	2,360	2,774	3,315
Total Assets	905	1,080	1,196	1,384	1,822	2,318	3,715	4,303	4,588	4,792	5,109	5,657	6,254

Natco Pharma Ltd Reserves and Borrowings Chart

Natco Pharma Ltd Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	65	61	144	93	112	346	464	669	417	299	46	849
Cash from Investing Activity	-125	-111	-108	-120	-176	-299	-1,116	-611	-175	-107	4	-465
Cash from Financing Activity	63	26	-35	29	154	-48	651	-51	-251	-186	35	-363
Net Cash Flow	3	-24	0	2	90	-1	-2	7	-8	6	85	21

Natco Pharma Ltd Financial Efficiency Indicators

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	66	72	59	85	92	86	106	88	105	73	116	115
Inventory Days	198	220	283	331	482	213	389	545	534	570	496	432
Days Payable	166	159	172	189	372	160	239	224	244	104	105	153
Cash Conversion Cycle	98	132	170	228	202	138	257	410	395	539	507	394
Working Capital Days	54	67	71	99	131	111	244	275	355	294	333	220
ROCE %	16%	17%	18%	17%	18%	39%	35%	23%	14%	13%	4%	18%

Natco Pharma Ltd Financial Efficiency Indicators Chart

Natco Pharma Ltd Share Holding Pattern

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	48.87%	48.87%	48.86%	48.81%	48.80%	48.80%	48.82%	48.84%	49.76%	49.71%	49.71%	49.71%
FIIs	13.73%	12.53%	12.26%	11.94%	11.65%	11.67%	11.73%	11.91%	11.03%	12.82%	13.72%	16.14%
DIIs	16.21%	17.78%	18.08%	16.15%	15.30%	14.30%	14.93%	15.38%	15.15%	14.01%	11.26%	9.69%
Public	21.19%	20.82%	20.80%	23.10%	24.25%	25.23%	24.53%	23.87%	24.08%	23.48%	25.32%	24.46%
No. of Shareholders	87,667	88,439	88,421	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

Natco Pharma Ltd Shareholding Pattern Chart

No. of Natco Pharma Ltd Shareholders

Natco Pharma Ltd 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	2024-07-05	124.86%
Mirae Asset Midcap Fund	1,924,853	1.19	152.54	1,162,678	2024-07-05	65.55%
ICICI Prudential Value Discovery Fund	1,162,678	0.26	92.14	1,162,678	2024-07-05	0%
Tata Equity P/E Fund - Regular Plan	900,000	1.1	71.33	1,162,678	2024-07-05	-22.59%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%	900,000	1.1	71.33	1,162,678	2024-07-05	-22.59%
Tata Small Cap Fund	900,000	1.12	71.33	1,162,678	2024-07-05	-22.59%
SBI Magnum Midcap Fund	750,551	0.41	59.48	1,162,678	2024-07-05	-35.45%
Mahindra Manulife Small Cap Fund	348,385	1.08	27.61	1,162,678	2024-07-05	-70.04%
Mirae Asset Healthcare Fund	216,673	0.87	17.17	1,162,678	2024-07-05	-81.36%
Bandhan Multi Cap Fund	200,000	0.95	15.85	1,162,678	2024-07-05	-82.8%

Natco Pharma Ltd ROCE Trend

Natco Pharma Ltd EPS Trend

Natco Pharma Ltd 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) (%)	0.00	14.03	48.29	25.81	27.64
Dividend Payout Ratio (CP) (%)	0.00	11.42	26.26	20.40	22.72
Earning Retention Ratio (%)	0.00	85.97	51.71	74.19	72.36
Cash Earning Retention Ratio (%)	0.00	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 (%)	0.00	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

Natco Pharma Ltd Profitability Ratios (%)

Natco Pharma Ltd Liquidity Ratios

Natco Pharma Ltd Liquidity Ratios (%)

Natco Pharma Ltd Interest Coverage Ratios (%)

Natco Pharma Ltd Valuation Ratios

Fair Value

Fair Value: 1,348.59

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.

Undervalued: 10.18% compared to the current price 1224

Intrinsic Value: 1,616.30

Calculation basis:

Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 32.05% compared to the current price ₹1224

Last 5 Year EPS CAGR: 19.85%

*Investments are subject to market risks

Strength and Weakness of Natco Pharma Ltd Stock

Strength	Weakness
The stock has a high average ROCE of 19.33%, which is a positive sign. The company has higher reserves (2,612.00 cr) compared to borrowings (266.00 cr), indicating strong financial stability. The company has shown consistent growth in sales (212.69 cr) and profit (399.77 cr) over the years.	The stock has a high average Working Capital Days of 187.83, which may not be favorable. The stock has a high average Cash Conversion Cycle of 289.17, which may not be favorable.

FAQ

What is the latest fair value of Natco Pharma Ltd?

The latest fair value of Natco Pharma Ltd is ₹1348.59.

What is the Market Cap of Natco Pharma Ltd?

The Market Cap of Natco Pharma Ltd is 21,921 Cr..

What is the current Stock Price of Natco Pharma Ltd as on 06 July 2024?

The current stock price of Natco Pharma Ltd as on 06 July 2024 is 1,224.

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

In FY 2024, the High / Low of Natco Pharma Ltd stocks is 1,259/667.

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

The Stock P/E of Natco Pharma Ltd is 15.8.

What is the Book Value of Natco Pharma Ltd?

The Book Value of Natco Pharma Ltd is 327.

What is the Dividend Yield of Natco Pharma Ltd?

The Dividend Yield of Natco Pharma Ltd is 0.78 %.

What is the ROCE of Natco Pharma Ltd?

The ROCE of Natco Pharma Ltd is 30.0 %.

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.