NSEI:NATCOPHARM

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has NATCO Pharma's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NATCOPHARM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.3%

NATCOPHARM

-0.8%

IN Pharmaceuticals

1.4%

IN Market


1 Year Return

58.8%

NATCOPHARM

48.4%

IN Pharmaceuticals

2.8%

IN Market

Return vs Industry: NATCOPHARM exceeded the Indian Pharmaceuticals industry which returned 48.4% over the past year.

Return vs Market: NATCOPHARM exceeded the Indian Market which returned 2.8% over the past year.


Shareholder returns

NATCOPHARMIndustryMarket
7 Day3.3%-0.8%1.4%
30 Day3.8%3.0%8.0%
90 Day27.7%12.3%7.8%
1 Year60.4%58.8%50.2%48.4%4.5%2.8%
3 Year-1.5%-4.6%25.7%22.3%-0.5%-5.3%
5 Year88.0%79.7%0.5%-3.1%41.5%31.0%

Price Volatility Vs. Market

How volatile is NATCO Pharma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NATCO Pharma undervalued compared to its fair value and its price relative to the market?

24.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NATCOPHARM (₹920.05) is trading below our estimate of fair value (₹1218.29)

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


Price To Earnings Ratio

PE vs Industry: NATCOPHARM is poor value based on its PE Ratio (38x) compared to the IN Pharmaceuticals industry average (22.8x).

PE vs Market: NATCOPHARM is poor value based on its PE Ratio (38x) compared to the Indian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: NATCOPHARM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: NATCOPHARM is overvalued based on its PB Ratio (4.4x) compared to the IN Pharmaceuticals industry average (2.2x).


Next Steps

Future Growth

How is NATCO Pharma forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

45.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NATCOPHARM's forecast earnings growth (45.4% per year) is above the savings rate (7.2%).

Earnings vs Market: NATCOPHARM's earnings (45.4% per year) are forecast to grow faster than the Indian market (25.9% per year).

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

Revenue vs Market: NATCOPHARM's revenue (29.9% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: NATCOPHARM's revenue (29.9% 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 low in 3 years time (16.8%).


Next Steps

Past Performance

How has NATCO Pharma performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NATCOPHARM has high quality earnings.

Growing Profit Margin: NATCOPHARM's current net profit margins (22.2%) are lower than last year (29.6%).


Past Earnings Growth Analysis

Earnings Trend: NATCOPHARM's earnings have grown significantly by 22.2% 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 (-27.2%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.7%).


Return on Equity

High ROE: NATCOPHARM's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is NATCO Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: NATCOPHARM's short term assets (₹23.3B) exceed its short term liabilities (₹6.9B).

Long Term Liabilities: NATCOPHARM's short term assets (₹23.3B) exceed its long term liabilities (₹1.2B).


Debt to Equity History and Analysis

Debt Level: NATCOPHARM's debt to equity ratio (8.3%) is considered satisfactory.

Reducing Debt: NATCOPHARM's debt to equity ratio has reduced from 29.8% to 8.3% over the past 5 years.

Debt Coverage: NATCOPHARM's debt is well covered by operating cash flow (132.8%).

Interest Coverage: NATCOPHARM's interest payments on its debt are well covered by EBIT (24.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NATCOPHARM's dividend (0.73%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: NATCOPHARM's dividend (0.73%) is low compared to the top 25% of dividend payers in the Indian market (2.28%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), NATCOPHARM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NATCOPHARM's dividends in 3 years are forecast to be well covered by earnings (15.1% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Rajeev Nannapaneni (43 yo)

8.33yrs

Tenure

₹19,747,000

Compensation

Mr. Rajeev Nannapaneni is Vice Chairman and Chief Executive Officer of Natco Pharma Ltd. since June 1, 2012. Mr. Nannapaneni was the Chief Operating Officer of Natco Pharma Ltd. since November 30, 2005. He ...


Leadership Team

NamePositionTenureCompensationOwnership
Venkaiah Nannapaneni
Chairman & MDno data₹21.51m24.67%
₹ 41.3b
Rajeev Nannapaneni
Vice Chairman & CEO8.33yrs₹19.75m0.62%
₹ 1.0b
S. V. V. Appa Rao
Chief Financial Officer4.67yrs₹10.01m0.0049%
₹ 8.2m
Donthineni Rao
President of Technical Affairs & Whole Time Director5.67yrs₹20.11m0.035%
₹ 59.0m
M. Adinarayana
Company Secretary7.33yrs₹5.48m0.022%
₹ 37.4m
Potluri Prasad
Executive VP of Corporate Engineering Services & Whole Time Director5.92yrs₹20.11m0.031%
₹ 51.7m
Rajesh Chebiyam
Vice President of Acquisitionsno datano data0.0041%
₹ 6.9m
Kumarsamy Srivatsava
Vice President of Marketing & Sales - Domesticno datano data0.0040%
₹ 6.6m
A. Lakshminarayana
Vice President of HR & Organisational Developmentno datano data0.0060%
₹ 10.0m
B. Reddy
Director of FDFno datano data0.010%
₹ 17.4m
M. Reddy
Executive Vice President of R&D26.5yrsno data0.024%
₹ 40.5m
Pavan Ganapati
Executive Vice President of Technical Operations3.67yrsno datano data

7.3yrs

Average Tenure

60.5yo

Average Age

Experienced Management: NATCOPHARM's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Venkaiah Nannapaneni
Chairman & MDno data₹21.51m24.67%
₹ 41.3b
Rajeev Nannapaneni
Vice Chairman & CEO8.33yrs₹19.75m0.62%
₹ 1.0b
Donthineni Rao
President of Technical Affairs & Whole Time Director5.67yrs₹20.11m0.035%
₹ 59.0m
Potluri Prasad
Executive VP of Corporate Engineering Services & Whole Time Director5.92yrs₹20.11m0.031%
₹ 51.7m
Dasu Prasad
Independent Director6.67yrs₹210.00kno data
Sreerama Gubbala
Independent Director20.75yrs₹460.00kno data
Thallapaka Rao
Independent Director8.5yrs₹280.00kno data
Leela Digumarti
Independent Director6.17yrs₹100.00kno data
Madireddi Naidu
Independent Director5.67yrs₹310.00k0.0082%
₹ 13.8m
Sridhar Sankararaman
Non-executive & Non-independent Director2.42yrsno datano data

6.2yrs

Average Tenure

68yo

Average Age

Experienced Board: NATCOPHARM's board of directors are considered experienced (6.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NATCOPHARM 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NATCO Pharma Limited
  • Ticker: NATCOPHARM
  • Exchange: NSEI
  • Founded: 1981
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹167.621b
  • Shares outstanding: 182.19m
  • Website: https://www.natcopharma.co.in

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524816BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1995
NATCOPHARMNSEI (National Stock Exchange of India)YesEquity SharesININRDec 1995

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 12:32
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.