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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

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.
INDUSTRYADDRESSCONTACT
PharmaceuticalsNATCO House, Road # 2, Hyderabad Telangana 500034investors@natcopharma.co.in
http://www.natcopharma.co.in
Management
NamePosition Held
Mr. G S MurthyChairman & Ind.Director
Mr. V C NannapaneniManaging Director
Mr. Rajeev NannapaneniDirector & CEO
Mr. T V RaoIndependent Director
Mr. D G PrasadIndependent Director
Dr. M U R NaiduIndependent Director
Dr. Leela DigumartiIndependent Director
Mr. P S R K PrasadDirector & Exe. VP (Corp. Engg. Services)
Dr. Linga Rao DonthineniDirector & President (Tech. Affairs)
Dr. Pavan Ganapati BhatDirector

Basic Stock Data of Natco Pharma Ltd

Last Updated: June 20, 2024, 10:34 pm

Market Cap 21,042 Cr.
Current Price 1,174
High / Low1,259/624
Stock P/E15.2
Book Value 327
Dividend Yield0.81 %
ROCE30.0 %
ROE25.9 %
Face Value 2.00
PEG Ratio0.77

Competitors of Natco Pharma Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bliss GVS Pharma Ltd 1,108 Cr. 106150/75.411.8 92.40.47 %14.4 %10.2 % 1.00
Brawn Biotech Ltd 8.04 Cr. 26.827.5/14.4 16.90.00 %27.1 %27.1 % 10.0
Venus Remedies Ltd 502 Cr. 375430/22217.6 3650.00 %8.67 %6.01 % 10.0
Chemo Pharma Laboratories Ltd 9.19 Cr. 61.287.0/27.27.66 85.30.00 %13.4 %9.84 % 10.0
Adline Chem Lab Ltd 7.80 Cr. 13.329.0/8.33 2.920.00 %%% 10.0
Industry Average15,221.55 Cr1,212.1038.65194.480.34%17.17%16.60%6.56

Natco Pharma Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales3553314103775605978854324928981,1401,031759
Expenses273255300307459615489337387559612573490
Operating Profit827611070102-1939595106339528458268
OPM %23%23%27%19%18%-3%45%22%22%38%46%44%35%
Other Income31281738301434202129202937
Interest3424574443445
Depreciation30303435363840424241444444
Profit before tax8071917091-503867081324500440256
Tax %21%25%18%7%12%-2%17%19%23%15%16%16%17%
Net Profit6353756580-503205762276420369213
EPS in Rs3.442.914.113.574.41-2.7717.553.113.4115.1123.4720.6011.88

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

Natco Pharma Ltd Quarterly Chart

Natco Pharma Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5246617398251,0422,0202,1852,0941,9152,0521,9452,7073,562
Expenses4145115606157771,3371,2561,3001,3321,4461,6811,7722,131
Operating Profit1091501792102666839287955836062649361,431
OPM %21%23%24%25%25%34%42%38%30%30%14%35%40%
Other Income911701214401301071049910599
Interest23263732231815192213181415
Depreciation1622304751546681100117143164170
Profit before tax801021291322046248878255695802028621,345
Tax %26%36%24%1%24%22%22%22%19%24%16%17%
Net Profit5866981301564856956424584421707151,127
EPS in Rs3.834.586.218.109.0227.8837.7435.2425.3124.189.3139.1862.59
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:18%
5 Years:18%
3 Years:3%
1 Year:92%
Return on Equity
10 Years:17%
5 Years:14%
3 Years:16%
Last Year:26%

Last Updated: June 16, 2024, 5:02 pm

Natco Pharma Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital31313333353537363636363636
Reserves4425026938131,2611,6143,0353,4523,7374,0854,2274,8375,258
Borrowings259338240312113222173386316268416167248
Other Liabilities173209229226413446470428498403430617713
Total Liabilities9051,0801,1961,3841,8222,3183,7154,3034,5884,7925,1095,6576,254
Fixed Assets3205836457107108331,0191,2271,5842,0232,3122,4272,468
CWIP1641061241292123364806385182231306484
Investments63222223276169112304308392387
Other Assets3593894255438781,1162,1402,2702,3732,2422,3602,7743,315
Total Assets9051,0801,1961,3841,8222,3183,7154,3034,5884,7925,1095,6576,254

Natco Pharma Ltd Reserves and Borrowings Chart

Natco Pharma Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 65611449311234646466941729946849
Cash from Investing Activity -125-111-108-120-176-299-1,116-611-175-1074-465
Cash from Financing Activity 6326-3529154-48651-51-251-18635-363
Net Cash Flow3-240290-1-27-868521

Natco Pharma Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days6672598592861068810573116115
Inventory Days198220283331482213389545534570496432
Days Payable166159172189372160239224244104105153
Cash Conversion Cycle98132170228202138257410395539507394
Working Capital Days54677199131111244275355294333220
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

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters48.87%48.87%48.86%48.81%48.80%48.80%48.82%48.84%49.76%49.71%49.71%49.71%
FIIs13.73%12.53%12.26%11.94%11.65%11.67%11.73%11.91%11.03%12.82%13.72%16.14%
DIIs16.21%17.78%18.08%16.15%15.30%14.30%14.93%15.38%15.15%14.01%11.26%9.69%
Public21.19%20.82%20.80%23.10%24.25%25.23%24.53%23.87%24.08%23.48%25.32%24.46%
No. of Shareholders87,66788,43988,42185,82892,4491,21,3361,35,3971,53,6631,55,1811,63,7532,07,5712,28,467

Natco Pharma Ltd Shareholding Pattern Chart

No. of Natco Pharma Ltd Shareholders

Natco Pharma Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Mirae Asset Large & Midcap Fund2,614,4480.68207.2900,0002024-06-19190.49%
Mirae Asset Midcap Fund1,924,8531.19152.54900,0002024-06-19113.87%
ICICI Prudential Value Discovery Fund1,162,6780.2692.14900,0002024-06-1929.19%
Tata Equity P/E Fund - Regular Plan900,0001.171.33900,0002024-06-190%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%900,0001.171.33900,0002024-06-190%
Tata Small Cap Fund900,0001.1271.33900,0002024-06-190%
SBI Magnum Midcap Fund750,5510.4159.48900,0002024-06-19-16.61%
Mahindra Manulife Small Cap Fund348,3851.0827.61900,0002024-06-19-61.29%
Mirae Asset Healthcare Fund216,6730.8717.17900,0002024-06-19-75.93%
Bandhan Multi Cap Fund200,0000.9515.85900,0002024-06-19-77.78%

Natco Pharma Ltd ROCE Trend

Natco Pharma Ltd EPS Trend

Natco Pharma Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)77.3439.189.3224.2025.33
Diluted EPS (Rs.)77.3439.189.3224.1625.26
Cash EPS (Rs.)87.9948.1717.1330.6530.65
Book Value[Excl.RevalReserv]/Share (Rs.)326.99267.06233.62225.94207.95
Book Value[Incl.RevalReserv]/Share (Rs.)326.99267.06233.62225.94207.95
Revenue From Operations / Share (Rs.)223.40148.33106.56112.44105.22
PBDIT / Share (Rs.)105.0057.0019.8638.8937.91
PBIT / Share (Rs.)94.5648.0212.0532.4932.43
PBT / Share (Rs.)93.4947.2311.0831.7631.25
Net Profit / Share (Rs.)77.5639.199.3124.2425.17
NP After MI And SOA / Share (Rs.)77.5639.199.3124.1625.32
PBDIT Margin (%)47.0038.4218.6334.5836.03
PBIT Margin (%)42.3332.3711.3028.8930.81
PBT Margin (%)41.8531.8310.3928.2429.69
Net Profit Margin (%)34.7126.428.7421.5523.92
NP After MI And SOA Margin (%)34.7126.428.7421.4824.06
Return on Networth / Equity (%)23.7114.673.9810.6912.21
Return on Capital Employeed (%)28.5217.614.9913.8915.12
Return On Assets (%)20.1012.643.329.2010.04
Total Debt / Equity (X)0.060.030.090.060.08
Asset Turnover Ratio (%)0.630.500.360.350.40
Current Ratio (X)4.144.393.524.453.39
Quick Ratio (X)3.423.302.442.932.58
Inventory Turnover Ratio (X)0.720.630.690.560.62
Dividend Payout Ratio (NP) (%)0.0014.0348.2925.8127.64
Dividend Payout Ratio (CP) (%)0.0011.4226.2620.4022.72
Earning Retention Ratio (%)0.0085.9751.7174.1972.36
Cash Earning Retention Ratio (%)0.0088.5873.7479.6077.28
Interest Coverage Ratio (X)97.8971.7420.4853.3732.09
Interest Coverage Ratio (Post Tax) (X)73.3150.3310.6034.2622.31
Enterprise Value (Cr.)16442.159905.3114018.6315043.099473.03
EV / Net Operating Revenue (X)4.113.667.217.334.95
EV / EBITDA (X)8.759.5238.6721.1913.73
MarketCap / Net Operating Revenue (X)4.263.807.117.344.81
Retention Ratios (%)0.0085.9651.7074.1872.35
Price / BV (X)2.912.113.243.652.44
Price / Net Operating Revenue (X)4.263.807.117.344.81
EarningsYield0.080.060.010.020.05

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: 1,297.76

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: 10.54% compared to the current price 1174

Intrinsic Value: 1,555.38

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: 32.49% compared to the current price ₹1174

Last 5 Year EPS CAGR: 19.85%

*Investments are subject to market risks

Strength and Weakness of Natco Pharma Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 19.33%, which is a positive sign.
  2. The company has higher reserves (2,612.00 cr) compared to borrowings (266.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (212.69 cr) and profit (399.77 cr) over the years.
  1. The stock has a high average Working Capital Days of 187.83, which may not be favorable.
  2. 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 ₹1297.76.

What is the Market Cap of Natco Pharma Ltd?

The Market Cap of Natco Pharma Ltd is 21,042 Cr..

What is the current Stock Price of Natco Pharma Ltd as on 21 June 2024?

The current stock price of Natco Pharma Ltd as on 21 June 2024 is ₹1,174.

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 1,259/624.

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

The Stock P/E of Natco Pharma Ltd is 15.2.

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 0.81 %.

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.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Natco Pharma Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE