Analysts Are More Bearish On NATCO Pharma Limited (NSE:NATCOPHARM) Than They Used To Be

The latest analyst coverage could presage a bad day for NATCO Pharma Limited (NSE:NATCOPHARM), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for NATCO Pharma from its eleven analysts is for revenues of ₹51b in 2026 which, if met, would be a decent 18% increase on its sales over the past 12 months. Statutory earnings per share are forecast to be ₹105, approximately in line with the last 12 months. Prior to this update, the analysts had been forecasting revenues of ₹57b and earnings per share (EPS) of ₹128 in 2026. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.

Check out our latest analysis for NATCO Pharma

It'll come as no surprise then, to learn that the analysts have cut their price target 15% to ₹1,153.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NATCO Pharma's past performance and to peers in the same industry. We would highlight that NATCO Pharma's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2026 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% per year. Even after the forecast slowdown in growth, it seems obvious that NATCO Pharma is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of NATCO Pharma.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for NATCO Pharma going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.