NSEI:NATCOPHARM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


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


Market Performance


7 Day Return

1.3%

NATCOPHARM

2.4%

IN Pharmaceuticals

2.3%

IN Market


1 Year Return

-23.6%

NATCOPHARM

-21.5%

IN Pharmaceuticals

0.3%

IN Market

Return vs Industry: NATCOPHARM underperformed the Indian Pharmaceuticals industry which returned -21.5% over the past year.

Return vs Market: NATCOPHARM underperformed the Indian Market which returned 0.3% over the past year.


Shareholder returns

NATCOPHARMIndustryMarket
7 Day1.3%2.4%2.3%
30 Day-0.5%-6.6%2.2%
90 Day9.4%-6.5%-2.7%
1 Year-22.8%-23.6%-20.8%-21.5%2.3%0.3%
3 Year-2.5%-5.5%-27.0%-28.5%20.7%14.7%
5 Year122.5%114.1%-10.6%-13.3%41.4%28.2%

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?

17.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NATCOPHARM (₹565.55) is trading above our estimate of fair value (₹188.19)

Significantly Undervalued: NATCOPHARM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NATCOPHARM is poor value based on its PE Ratio (17.1x) compared to the Pharmaceuticals industry average (15.5x).

PE vs Market: NATCOPHARM is poor value based on its PE Ratio (17.1x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: NATCOPHARM is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: NATCOPHARM is overvalued based on its PB Ratio (3x) compared to the IN Pharmaceuticals industry average (1.6x).


Next Steps

Future Growth

How is NATCO Pharma forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NATCOPHARM's forecast earnings growth (8.4% per year) is above the savings rate (7.6%).

Earnings vs Market: NATCOPHARM's earnings (8.4% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: NATCOPHARM's earnings are forecast to grow, but not significantly.

Revenue vs Market: NATCOPHARM's revenue (10.3% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: NATCOPHARM's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NATCOPHARM's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has NATCO Pharma performed over the past 5 years?

40.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NATCOPHARM's earnings have grown significantly by 40.9% 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 (-22.7%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (16.4%).


Return on Equity

High ROE: NATCOPHARM's Return on Equity (17.3%) is considered low.


Return on Assets

ROA vs Industry: NATCOPHARM has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: NATCOPHARM has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is NATCO Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: NATCOPHARM's short term assets (₹23.5B) exceeds its short term liabilities (₹7.3B)

Long Term Liabilities: NATCOPHARM's short term assets (23.5B) exceeds its long term liabilities (834.0M)


Debt to Equity History and Analysis

Debt Level: NATCOPHARM's debt to equity ratio (11.1%) is considered satisfactory

Reducing Debt: NATCOPHARM's debt to equity ratio has reduced from 26.5% to 11.1% over the past 5 years.

Debt Coverage: NATCOPHARM's debt is well covered by operating cash flow (173.1%).

Interest Coverage: NATCOPHARM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NATCOPHARM has a high level of physical assets or inventory.

Debt Coverage by Assets: NATCOPHARM's debt is covered by short term assets (assets are 6.076100x debt).


Next Steps

Dividend

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

1.06%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NATCOPHARM's dividend (1.06%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: NATCOPHARM's dividend (1.06%) is low compared to the top 25% of dividend payers in the Indian market (2.5%).

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 low payout ratio (18.2%), 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 (15.4% payout ratio).


Next Steps

Management

What is the CEO of NATCO Pharma's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Rajeev Nannapaneni (42yo)

7.3yrs

Tenure

0

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 ...


Management Age and Tenure

6.3yrs

Average Tenure

60yo

Average Age

Experienced Management: NATCOPHARM's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

67yo

Average Age

Experienced Board: NATCOPHARM's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹864,20226 Feb 19
Potluri Prasad
EntityIndividual
Role
Member of the Board of Directors
Executive VP of Corporate Engineering Services & Whole Time Director
Shares1,500
Max Price₹576.13

Ownership Breakdown


Management Team

  • Rajeev Nannapaneni (42yo)

    Vice Chairman & CEO

    • Tenure: 7.3yrs
  • Venkaiah Nannapaneni (74yo)

    Chairman & MD

    • Tenure: 0yrs
  • M. Adinarayana (59yo)

    Company Secretary

    • Tenure: 6.3yrs
    • Compensation: ₹4.85m
  • B. Reddy (66yo)

    Director of FDF

    • Tenure: 0yrs
  • Donthineni Rao (67yo)

    President of Technical Affairs & Whole Time Director

    • Tenure: 4.7yrs
  • A. Lakshminarayana (56yo)

    Vice President of HR & Organisational Development

    • Tenure: 0yrs
  • S. V. V. Appa Rao

    Chief Financial Officer

    • Tenure: 3.7yrs
    • Compensation: ₹6.18m
  • Potluri Prasad (61yo)

    Executive VP of Corporate Engineering Services & Whole Time Director

    • Tenure: 4.9yrs
  • K. Srivatsava

    Vice President of Marketing & Sales - Domestic

    • Tenure: 0yrs
  • Rajesh Chebiyam (48yo)

    Vice President of Acquisitions

    • Tenure: 0yrs

Board Members

  • Dasu Prasad (71yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: ₹260.00k
  • Rajeev Nannapaneni (42yo)

    Vice Chairman & CEO

    • Tenure: 7.3yrs
  • Venkaiah Nannapaneni (74yo)

    Chairman & MD

    • Tenure: 0yrs
  • Sreerama Gubbala (82yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: ₹370.00k
  • Donthineni Rao (67yo)

    President of Technical Affairs & Whole Time Director

    • Tenure: 4.7yrs
  • Thallapaka Rao (67yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: ₹210.00k
  • Leela Digumarti (59yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: ₹100.00k
  • Potluri Prasad (61yo)

    Executive VP of Corporate Engineering Services & Whole Time Director

    • Tenure: 4.9yrs
  • Madireddi Naidu (70yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: ₹160.00k
  • Sridhar Sankararaman (38yo)

    Non-executive & Non-independent Director

    • Tenure: 1.4yrs

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: ₹102.357b
  • Shares outstanding: 181.89m
  • Website: https://www.natcopharma.co.in

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524816BSE (Mumbai Stock Exchange)INR2ININRNo data
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 Analysis2019/10/15 12:47
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.