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Last Updated: April 2, 2026, 3:23 am
Author: Getaka|Social: XLinkedIn
Stock Ticker - BSE: 524816 | NSE: NATCOPHARM

Natco Pharma Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹1,251.67Undervalued by 24.92%vs CMP ₹1,002.00

P/E (11.5) × ROE (28.0%) × BV (₹483.00) × DY (0.60%)

₹1,243.23Undervalued by 24.07%vs CMP ₹1,002.00
MoS: +19.4% (Adequate)Confidence: 48/100 (Moderate)Models: 3 Under, 1 Fair, 5 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹1,956.7923%Under (+95.3%)
Graham NumberEarnings₹972.0217%Fair (-3%)
Earnings PowerEarnings₹617.4711%Over (-38.4%)
DCFCash Flow₹2,117.0411%Under (+111.3%)
Net Asset ValueAssets₹482.997%Over (-51.8%)
EV/EBITDAEnterprise₹1,614.319%Under (+61.1%)
Earnings YieldEarnings₹869.407%Over (-13.2%)
ROCE CapitalReturns₹575.937%Over (-42.5%)
Revenue MultipleRevenue₹371.046%Over (-63%)
Consensus (9 models)₹1,243.23100%Undervalued
Key Drivers: EPS CAGR 56.3% lifts DCF — verify sustainability. | Wide model spread (₹371–₹2,117) — high uncertainty.

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: 56.3%

*Investments are subject to market risks

Investment Snapshot

70
Natco Pharma Ltd scores 70/100 (Strong)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health88/100 · Strong
ROCE 32.8% ExcellentROE 28.0% ExcellentD/E 0.06 Low debtInterest Coverage 0.0x RiskyProfitable 5/5 years Consistent
Smart Money30/100 · Weak
FII holding down -2.33% (6mo) SellingPromoter holding at 49.5% Stable
Earnings Quality55/100 · Moderate
OPM expanding (25% → 47%) ImprovingWorking capital: 151 days Capital intensive
Quarterly Momentum60/100 · Moderate
Revenue (4Q): +7% YoY GrowingProfit (4Q): -16% YoY DecliningOPM: 25.0% (up 17.0% YoY) Margin expansion
Industry Rank100/100 · Strong
P/E 11.5 vs industry 53.8 Cheaper than peersROCE 32.8% vs industry 16.4% Above peersROE 28.0% vs industry 15.2% Above peers3Y sales CAGR: 32% High growth

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 3:23 am

Market Cap 17,945 Cr.
Current Price 1,002
Intrinsic Value₹1,243.23
High / Low 1,060/660
Stock P/E11.5
Book Value 483
Dividend Yield0.60 %
ROCE32.8 %
ROE28.0 %
Face Value 2.00
PEG Ratio0.20

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

View Share Price Target for Natco Pharma Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Natco Pharma Ltd 17,945 Cr. 1,002 1,060/66011.5 4830.60 %32.8 %28.0 % 2.00
ERIS Lifesciences Ltd 18,152 Cr. 1,310 1,910/1,09740.9 2270.56 %12.2 %12.9 % 1.00
Acutaas Chemicals Ltd 19,093 Cr. 2,332 2,688/93066.5 1730.06 %19.9 %16.0 % 5.00
Astrazeneca Pharma India Ltd 19,630 Cr. 7,852 10,691/6,50294.4 3200.41 %33.4 %23.6 % 2.00
Neuland Laboratories Ltd 16,182 Cr. 12,613 19,748/10,06090.3 1,2630.10 %18.7 %14.8 % 10.0
Industry Average19,815.15 Cr1,053.8453.84201.200.39%16.35%15.16%6.10

All Competitor Stocks of Natco Pharma Ltd

Quarterly Result

MetricDec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales 4928981,1401,0317591,0681,3631,3714751,2211,3291,363647
Expenses 387559612573490571558567436673758784489
Operating Profit 10633952845826849780580439548571579159
OPM % 22%38%46%44%35%47%59%59%8%45%43%42%25%
Other Income 2129202937424864176666210058
Interest 4344565441031310
Depreciation 42414444445644464798585246
Profit before tax 81324500440256478804818164506572614161
Tax % 23%15%16%16%17%19%17%17%19%20%16%16%13%
Net Profit 62276420369213386668676132406480518151
EPS in Rs 3.4115.1123.4720.6011.8821.5737.3237.817.4322.7026.8428.948.46

Last Updated: March 3, 2026, 6:16 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 25, 2026, 4:16 am

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 7398251,0422,0202,1852,0941,9152,0521,9452,7073,9994,4304,560
Expenses 5606157771,3371,2561,3001,3321,4461,6811,7722,2452,2342,703
Operating Profit 1792102666839287955836062649361,7542,1961,857
OPM % 24%25%25%34%42%38%30%30%14%35%44%50%41%
Other Income 17012144013010710499105126354286
Interest 37322318151922131814192436
Depreciation 304751546681100117143164187235254
Profit before tax 1291322046248878255695802028621,6742,2911,853
Tax % 24%1%24%22%22%22%19%24%16%17%17%18%
Net Profit 981301564856956424584421707151,3881,8831,556
EPS in Rs 6.218.109.0227.8837.7435.2425.3124.189.3139.1877.51105.2686.94
Dividend Payout % 16%12%14%24%22%18%27%22%48%14%12%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)32.65%20.00%210.90%43.30%-7.63%-28.66%-3.49%-61.54%320.59%94.13%35.66%
Change in YoY Net Profit Growth (%)0.00%-12.65%190.90%-167.60%-50.92%-21.03%25.17%-58.05%382.13%-226.46%-58.46%

Natco Pharma Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Last Updated: September 5, 2025, 11:35 am

Balance Sheet

Last Updated: December 4, 2025, 1:42 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 33333535373636363636363636
Reserves 6938131,2611,6143,0353,4523,7374,0854,2274,8375,8177,5718,614
Borrowings 240312113222173386316268416167371279261
Other Liabilities 2292264134464704284984034306176827441,520
Total Liabilities 1,1961,3841,8222,3183,7154,3034,5884,7925,1095,6576,9068,63110,430
Fixed Assets 6457107108331,0191,2271,5842,0232,3122,4272,4912,6982,697
CWIP 12412921233648063851822313064137225255
Investments 22223276169112304308392539474774
Other Assets 4255438781,1162,1402,2702,3732,2422,3602,7743,7395,2346,704
Total Assets 1,1961,3841,8222,3183,7154,3034,5884,7925,1095,6576,9068,63110,430

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity + 14493112346464669417299468491,2121,697
Cash from Investing Activity + -108-120-176-299-1,116-611-175-1074-465-1,026-1,436
Cash from Financing Activity + -3529154-48651-51-251-18635-363-247-211
Net Cash Flow 0290-1-27-868521-6250
Free Cash Flow 34-25-4466572258192-1426748551,300
CFO/OP 100%55%60%69%72%107%90%71%36%110%85%94%

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow-61.00-102.00153.00461.00755.00409.00267.00338.00-152.00769.00-370.00-277.00

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

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days 598592861068810573116115109103
Inventory Days 283331482213389545534570496432357405
Days Payable 172189372160239224244104105153120145
Cash Conversion Cycle 170228202138257410395539507394345362
Working Capital Days 22259771215207295246256198151151
ROCE %18%17%18%39%35%23%14%13%4%18%30%33%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 48.84%49.76%49.71%49.71%49.71%49.71%49.62%49.62%49.56%49.56%49.48%49.48%
FIIs 11.91%11.03%12.82%13.72%16.14%17.45%17.51%17.94%17.49%15.52%14.09%15.16%
DIIs 15.38%15.15%14.01%11.26%9.69%7.86%6.75%5.59%5.64%5.81%5.87%5.39%
Public 23.87%24.08%23.48%25.32%24.46%24.99%26.13%26.88%27.30%29.12%30.56%29.97%
No. of Shareholders 1,53,6631,55,1811,63,7532,07,5712,28,4672,51,4853,02,9443,45,3324,05,2224,29,4344,19,6994,24,167

Shareholding Pattern Chart

No. of Shareholders

Natco Pharma Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Tata Value Fund 825,000 0.78 68.961,411,4752025-12-15 08:54:25-41.55%
Sundaram Small Cap Fund 603,569 1.54 50.45561,3692025-12-08 07:53:017.52%
Tata Small Cap Fund 549,064 0.43 45.9900,0002025-09-10 00:17:42-38.99%
Baroda BNP Paribas Business Cycle Fund 54,000 0.8 4.5167,5002026-02-23 03:58:30-20%
Sundaram Long Term Micro Cap Tax Advantage Fund - Series III 12,965 1.52 1.08N/AN/AN/A
Sundaram Long Term Micro Cap Tax Advantage Fund - Series VI 6,182 1.51 0.52N/AN/AN/A
Sundaram Long Term Micro Cap Tax Advantage Fund - Series IV 6,109 1.51 0.51N/AN/AN/A
Sundaram Long Term Tax Advantage Fund - Series III 5,676 1.48 0.47N/AN/AN/A
Sundaram Long Term Micro Cap Tax Advantage Fund - Series V 5,139 1.48 0.43N/AN/AN/A
Sundaram Long Term Tax Advantage Fund - Series IV 3,747 1.46 0.31N/AN/AN/A

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23Mar 22Mar 21
FaceValue 2.002.002.002.002.00
Basic EPS (Rs.) 105.2677.3439.189.3224.20
Diluted EPS (Rs.) 105.2677.3439.189.3224.16
Cash EPS (Rs.) 118.3687.9948.1717.1330.65
Book Value[Excl.RevalReserv]/Share (Rs.) 424.97326.99267.06233.62225.94
Book Value[Incl.RevalReserv]/Share (Rs.) 424.97326.99267.06233.62225.94
Revenue From Operations / Share (Rs.) 247.46223.40148.33106.56112.44
PBDIT / Share (Rs.) 142.49105.0057.0019.8638.89
PBIT / Share (Rs.) 129.3594.5648.0212.0532.49
PBT / Share (Rs.) 128.0193.4947.2311.0831.76
Net Profit / Share (Rs.) 105.2277.5639.199.3124.24
NP After MI And SOA / Share (Rs.) 105.3377.5639.199.3124.16
PBDIT Margin (%) 57.5747.0038.4218.6334.58
PBIT Margin (%) 52.2742.3332.3711.3028.89
PBT Margin (%) 51.7341.8531.8310.3928.24
Net Profit Margin (%) 42.5134.7126.428.7421.55
NP After MI And SOA Margin (%) 42.5634.7126.428.7421.48
Return on Networth / Equity (%) 24.7823.7114.673.9810.69
Return on Capital Employeed (%) 30.1128.5217.614.9913.89
Return On Assets (%) 21.8420.1012.643.329.20
Total Debt / Equity (X) 0.030.060.030.090.06
Asset Turnover Ratio (%) 0.570.630.500.360.35
Current Ratio (X) 5.594.144.393.524.45
Quick Ratio (X) 4.773.423.302.442.93
Inventory Turnover Ratio (X) 6.040.720.630.690.56
Dividend Payout Ratio (NP) (%) 5.7012.2514.0348.2925.81
Dividend Payout Ratio (CP) (%) 5.0610.8011.4226.2620.40
Earning Retention Ratio (%) 94.3087.7585.9751.7174.19
Cash Earning Retention Ratio (%) 94.9489.2088.5873.7479.60
Interest Coverage Ratio (X) 106.7297.8971.7420.4853.37
Interest Coverage Ratio (Post Tax) (X) 79.8073.3150.3310.6034.26
Enterprise Value (Cr.) 12381.2316442.159905.3114018.6315043.09
EV / Net Operating Revenue (X) 2.804.113.667.217.33
EV / EBITDA (X) 4.858.759.5238.6721.19
MarketCap / Net Operating Revenue (X) 3.224.263.807.117.34
Retention Ratios (%) 94.2987.7485.9651.7074.18
Price / BV (X) 1.882.912.113.243.65
Price / Net Operating Revenue (X) 3.224.263.807.117.34
EarningsYield 0.130.080.060.010.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

About the Company - Qualitative Analysis

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. 4094.50 Cr. and Equity Capital is Rs. 35.80 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
PharmaceuticalsNATCO House, Road # 2, Banjara Hills, Hyderabad Telangana 500034Contact not found
Management
NamePosition Held
Mr. V C NannapaneniChairman & Managing Director
Mr. Rajeev NannapaneniVice Chairman & CEO
Mr. P S R K PrasadDirector & Exe. VP (Corp. Engg. Services)
Dr. D Linga RaoDirector & President (Tech. Affairs)
Mr. D Vijaya BhaskarIndependent Director
Mr. A D M ChavaliIndependent Director
Dr. Kantipudi SumaIndependent Director
Mr. Nitin JainIndependent Director
Mr. Lakshminarayana BolisettyIndependent Director

FAQ

What is the intrinsic value of Natco Pharma Ltd and is it undervalued?

As of 20 April 2026, Natco Pharma Ltd's intrinsic value is ₹1243.23, which is 24.07% higher than the current market price of ₹1,002.00, suggesting the stock is undervalued. This is calculated using the PE ratio method factoring in ROE (28.0 %), book value (₹483), dividend yield (0.60 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of Natco Pharma Ltd?

Natco Pharma Ltd is trading at ₹1,002.00 as of 20 April 2026, with a FY2026-2027 high of ₹1,060 and low of ₹660. The stock is currently near its 52-week high. Market cap stands at ₹17,945 Cr..

How does Natco Pharma Ltd's P/E ratio compare to its industry?

Natco Pharma Ltd has a P/E ratio of 11.5, which is below the industry average of 53.84. Trading at a steep discount to peers could signal a value opportunity or reflect concerns about the company's fundamentals.

Is Natco Pharma Ltd financially healthy?

Key indicators for Natco Pharma Ltd: ROCE of 32.8 % indicates efficient capital utilization; ROE of 28.0 % shows strong shareholder returns. Dividend yield is 0.60 %.

Is Natco Pharma Ltd profitable and how is the profit trend?

Natco Pharma Ltd reported a net profit of ₹1,883 Cr in Mar 2025 on revenue of ₹4,430 Cr. Compared to ₹170 Cr in Mar 2022, the net profit shows an improving trend.

Does Natco Pharma Ltd pay dividends?

Natco Pharma Ltd has a dividend yield of 0.60 % at the current price of ₹1,002.00. The company pays dividends, though the yield is modest.

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
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