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NATC

NATCO Pharma NSEI:NATCOPHARM Stock Report

Last Price

₹644.70

Market Cap

₹117.7b

7D

-3.6%

1Y

-41.2%

Updated

24 Jun, 2022

Data

Company Financials +
NATCOPHARM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth6/6
Past Performance1/6
Financial Health5/6
Dividends3/6

NATCOPHARM Stock Overview

NATCO Pharma Limited, a pharmaceutical company, develops, manufactures, and markets finished dosage formulations and active pharmaceutical ingredients (APIs).

NATCO Pharma Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for NATCO Pharma
Historical stock prices
Current Share Price₹644.70
52 Week High₹1,189.00
52 Week Low₹607.75
Beta0.65
1 Month Change-4.85%
3 Month Change-17.07%
1 Year Change-41.18%
3 Year Change20.53%
5 Year Change-35.64%
Change since IPO3,481.67%

Recent News & Updates

Jun 23
Does NATCO Pharma (NSE:NATCOPHARM) Have A Healthy Balance Sheet?

Does NATCO Pharma (NSE:NATCOPHARM) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jun 02
Broker Revenue Forecasts For NATCO Pharma Limited (NSE:NATCOPHARM) Are Surging Higher

Broker Revenue Forecasts For NATCO Pharma Limited (NSE:NATCOPHARM) Are Surging Higher

NATCO Pharma Limited ( NSE:NATCOPHARM ) shareholders will have a reason to smile today, with the analysts making...

Shareholder Returns

NATCOPHARMIN PharmaceuticalsIN Market
7D-3.6%2.6%2.3%
1Y-41.2%-15.4%-0.9%

Return vs Industry: NATCOPHARM underperformed the Indian Pharmaceuticals industry which returned -15.3% over the past year.

Return vs Market: NATCOPHARM underperformed the Indian Market which returned -1.7% over the past year.

Price Volatility

Is NATCOPHARM's price volatile compared to industry and market?
NATCOPHARM volatility
NATCOPHARM Average Weekly Movement4.2%
Pharmaceuticals Industry Average Movement6.7%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: NATCOPHARM is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NATCOPHARM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19815,046Rajeev Nannapanenihttps://www.natcopharma.co.in

NATCO Pharma Limited, a pharmaceutical company, develops, manufactures, and markets finished dosage formulations and active pharmaceutical ingredients (APIs). It offers formulations in various therapeutic areas, including cancers of blood, liver, kidney, lung, brain, breast, ovary, etc.; and APIs in various categories, such as oncology, central nervous system, pain management, and CV care. The company also offers orthopedic products comprising bisphosphonates, which are oral and injectable drugs; and gastroenterology products consisting of novel drugs for chronic hepatitis-B and hepatitis-C, as well as contract manufacturing services.

NATCO Pharma Fundamentals Summary

How do NATCO Pharma's earnings and revenue compare to its market cap?
NATCOPHARM fundamental statistics
Market Cap₹117.69b
Earnings (TTM)₹1.70b
Revenue (TTM)₹19.45b

69.2x

P/E Ratio

6.1x

P/S Ratio

Is NATCOPHARM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NATCOPHARM income statement (TTM)
Revenue₹19.45b
Cost of Revenue₹5.61b
Gross Profit₹13.84b
Other Expenses₹12.14b
Earnings₹1.70b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.31
Gross Margin71.16%
Net Profit Margin8.74%
Debt/Equity Ratio9.5%

How did NATCOPHARM perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

48%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NATCOPHARM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NATCOPHARM?

Other financial metrics that can be useful for relative valuation.

NATCOPHARM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.9x
Enterprise Value/EBITDA43.2x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does NATCOPHARM's PE Ratio compare to its peers?

NATCOPHARM PE Ratio vs Peers
The above table shows the PE ratio for NATCOPHARM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.8x

Price-To-Earnings vs Peers: NATCOPHARM is expensive based on its Price-To-Earnings Ratio (69.2x) compared to the peer average (20.8x).


Price to Earnings Ratio vs Industry

How does NATCOPHARM's PE Ratio compare vs other companies in the Indian Pharmaceuticals Industry?

Price-To-Earnings vs Industry: NATCOPHARM is expensive based on its Price-To-Earnings Ratio (69.2x) compared to the Indian Pharmaceuticals industry average (20.2x)


Price to Earnings Ratio vs Fair Ratio

What is NATCOPHARM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NATCOPHARM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio69.2x
Fair PE Ratio50.2x

Price-To-Earnings vs Fair Ratio: NATCOPHARM is expensive based on its Price-To-Earnings Ratio (69.2x) compared to the estimated Fair Price-To-Earnings Ratio (50.2x).


Share Price vs Fair Value

What is the Fair Price of NATCOPHARM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NATCOPHARM (₹644.7) is trading below our estimate of fair value (₹1223.07)

Significantly Below Fair Value: NATCOPHARM is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: NATCOPHARM is good value based on its PEG Ratio (1x)


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Future Growth

How is NATCO Pharma forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


71.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NATCOPHARM's forecast earnings growth (71.1% per year) is above the savings rate (6.7%).

Earnings vs Market: NATCOPHARM's earnings (71.1% per year) are forecast to grow faster than the Indian market (17.5% per year).

High Growth Earnings: NATCOPHARM's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NATCOPHARM's revenue (33.5% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: NATCOPHARM's revenue (33.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NATCOPHARM's Return on Equity is forecast to be high in 3 years time (22%)


Discover growth companies

Past Performance

How has NATCO Pharma performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-15.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NATCOPHARM has high quality earnings.

Growing Profit Margin: NATCOPHARM's current net profit margins (8.7%) are lower than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: NATCOPHARM's earnings have declined by 15% per year over the past 5 years.

Accelerating Growth: NATCOPHARM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NATCOPHARM had negative earnings growth (-61.4%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (9%).


Return on Equity

High ROE: NATCOPHARM's Return on Equity (4%) is considered low.


Discover strong past performing companies

Financial Health

How is NATCO Pharma's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NATCOPHARM's short term assets (₹25.0B) exceed its short term liabilities (₹7.1B).

Long Term Liabilities: NATCOPHARM's short term assets (₹25.0B) exceed its long term liabilities (₹1.4B).


Debt to Equity History and Analysis

Debt Level: NATCOPHARM has more cash than its total debt.

Reducing Debt: NATCOPHARM's debt to equity ratio has reduced from 13.4% to 9.5% over the past 5 years.

Debt Coverage: NATCOPHARM's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: NATCOPHARM's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


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Dividend

What is NATCO Pharma current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.70%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NATCOPHARM's dividend (0.7%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: NATCOPHARM's dividend (0.7%) is low compared to the top 25% of dividend payers in the Indian market (1.9%).


Stability and Growth of Payments

Stable Dividend: NATCOPHARM's dividend payments have been volatile in the past 10 years.

Growing Dividend: NATCOPHARM's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.3%), NATCOPHARM's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: NATCOPHARM is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Rajeev Nannapaneni (44 yo)

10yrs

Tenure

₹19,747,000

Compensation

Sri Rajeev Nannapaneni serves as Chief Executive Officer at NATCO Pharma Limited since 2022 and also served as Vice Chairman since June 1, 2012 until 2022. Mr. Nannapaneni was the Chief Operating Officer o...


Leadership Team

Experienced Management: NATCOPHARM's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: NATCOPHARM's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NATCO Pharma Limited's employee growth, exchange listings and data sources


Key Information

  • Name: NATCO Pharma Limited
  • Ticker: NATCOPHARM
  • Exchange: NSEI
  • Founded: 1981
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: ₹117.695b
  • Shares outstanding: 182.56m
  • Website: https://www.natcopharma.co.in

Number of Employees


Location

  • NATCO Pharma Limited
  • NATCO House
  • Road No. 2
  • Hyderabad
  • 500034
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.