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Last Updated on: 27 February, 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. V C NannapaneniManaging Director
Mr. Rajeev NannapaneniDirector & CEO
Mr. T V RaoIndependent Director
Mr. G S MurthyChairman & Ind.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)
Mr. Pavan BhatDirector

Natco Pharma Ltd. Share Price Update

Share PriceValue
Today₹845.00
Previous Day₹857.05

Basic Stock Data of Natco Pharma Ltd

Market Cap 18,407 Cr.
Current Price 1,028
High / Low1,108/520
Stock P/E14.4
Book Value 296
Dividend Yield0.92 %
ROCE17.7 %
ROE15.3 %
Face Value 2.00

Data Source: screener.in

Competitors of Natco Pharma Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Jagsonpal Pharmaceuticals Ltd 811 Cr. 308515/28033.1 64.41.65 %25.6 %19.9 % 5.00
Beta Drugs Ltd 1,259 Cr. 1,3101,595/60036.2 1480.00 %33.9 %28.6 % 10.0
Bliss GVS Pharma Ltd 1,385 Cr. 132150/69.215.8 88.80.38 %11.8 %8.30 % 1.00
Neuland Laboratories Ltd 8,963 Cr. 6,9867,342/1,54528.3 8830.14 %20.8 %17.9 % 10.0
Venus Remedies Ltd 456 Cr. 341430/15115.7 3520.00 %7.75 %5.90 % 10.0
Industry Average2,574.80 Cr1,815.4025.82307.240.43%19.97%16.12%7.20

Natco Pharma Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8023553314103775605978854324928981,1401,031
Expenses526273255300307459615489337387559612573
Operating Profit276827611070102-1939595106339528458
OPM %34%23%23%27%19%18%-3%45%22%22%38%46%44%
Other Income26312817383014342021292029
Interest3342457444344
Depreciation29303034353638404242414444
Profit before tax2718071917091-503867081324500440
Tax %25%21%25%18%7%12%-2%17%19%23%15%16%16%
Net Profit2046353756580-503205762276420369
EPS in Rs11.113.442.914.113.574.41-2.7717.553.113.4115.1123.4720.60

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:15%
5 Years:4%
3 Years:12%
TTM:59%
Compounded Profit Growth
10 Years:25%
5 Years:0%
3 Years:16%
TTM:228%
Stock Price CAGR
10 Years:20%
5 Years:12%
3 Years:8%
1 Year:89%
Return on Equity
10 Years:15%
5 Years:12%
3 Years:10%
Last Year:15%

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

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters48.87%48.87%48.87%48.86%48.81%48.80%48.80%48.82%48.84%49.76%49.71%49.71%
FIIs16.35%13.73%12.53%12.26%11.94%11.65%11.67%11.73%11.91%11.03%12.82%13.72%
DIIs16.14%16.21%17.78%18.08%16.15%15.30%14.30%14.93%15.38%15.15%14.01%11.26%
Public18.65%21.19%20.82%20.80%23.10%24.25%25.23%24.53%23.87%24.08%23.48%25.32%
No. of Shareholders85,50987,66788,43988,42185,82892,4491,21,3361,35,3971,53,6631,55,1811,63,7532,07,571

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)
Mirae Asset Large & Midcap Fund26144480.68207.2
Mirae Asset Midcap Fund19248531.19152.54
ICICI Prudential Value Discovery Fund11626780.2692.14
Tata Equity P/E Fund - Regular Plan9000001.171.33
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%9000001.171.33
Tata Small Cap Fund9000001.1271.33
SBI Magnum Midcap Fund7505510.4159.48
Mahindra Manulife Small Cap Fund3483851.0827.61
Mirae Asset Healthcare Fund2166730.8717.17
Bandhan Multi Cap Fund2000000.9515.85

Natco Pharma Ltd ROCE Trend

Natco Pharma Ltd EPS Trend

Natco Pharma Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)39.189.3224.2025.3334.98
Diluted EPS (Rs.)39.189.3224.1625.2634.87
Cash EPS (Rs.)48.1717.1330.6530.6539.64
Book Value[Excl.RevalReserv]/Share (Rs.)267.06233.62225.94207.95191.29
Book Value[Incl.RevalReserv]/Share (Rs.)267.06233.62225.94207.95191.29
Revenue From Operations / Share (Rs.)148.33106.56112.44105.22114.77
PBDIT / Share (Rs.)57.0019.8638.8937.9150.68
PBIT / Share (Rs.)48.0212.0532.4932.4346.25
PBT / Share (Rs.)47.2311.0831.7631.2545.19
Net Profit / Share (Rs.)39.199.3124.2425.1735.20
NP After MI And SOA / Share (Rs.)39.199.3124.1625.3235.31
PBDIT Margin (%)38.4218.6334.5836.0344.16
PBIT Margin (%)32.3711.3028.8930.8140.29
PBT Margin (%)31.8310.3928.2429.6939.37
Net Profit Margin (%)26.428.7421.5523.9230.67
NP After MI And SOA Margin (%)26.428.7421.4824.0630.76
Return on Networth / Equity (%)14.673.9810.6912.2118.46
Return on Capital Employeed (%)17.614.9913.8915.1223.61
Return On Assets (%)12.643.329.2010.0414.97
Total Debt / Equity (X)0.030.090.060.080.11
Asset Turnover Ratio (%)0.500.360.350.400.49
Current Ratio (X)4.393.524.453.393.22
Quick Ratio (X)3.302.442.932.582.50
Inventory Turnover Ratio (X)0.630.690.560.620.70
Dividend Payout Ratio (NP) (%)14.0348.2925.8127.6414.26
Dividend Payout Ratio (CP) (%)11.4226.2620.4022.7212.66
Earning Retention Ratio (%)85.9751.7174.1972.3685.74
Cash Earning Retention Ratio (%)88.5873.7479.6077.2887.34
Interest Coverage Ratio (X)71.7420.4853.3732.0947.93
Interest Coverage Ratio (Post Tax) (X)50.3310.6034.2622.3134.28
Enterprise Value (Cr.)9905.3114018.6315043.099473.0310540.50
EV / Net Operating Revenue (X)3.667.217.334.955.03
EV / EBITDA (X)9.5238.6721.1913.7311.40
MarketCap / Net Operating Revenue (X)3.807.117.344.814.98
Retention Ratios (%)85.9651.7074.1872.3585.73
Price / BV (X)2.113.243.652.442.99
Price / Net Operating Revenue (X)3.807.117.344.814.98
EarningsYield0.060.010.020.050.06

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 of Natco Pharma Ltd Stock

Fair Value: ₹658.15

The stock is overvalued by 35.98% compared to the current price ₹1028

*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 is trading at a high valuation with an average P/B ratio of 34.25 and average Dividend Yield of 28.73%.
  2. The stock has a high average Working Capital Days of 187.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 289.17, which may not be favorable.

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