Analysing Natco Pharma

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Analysing Natco Pharma

Highlights:

  1. Low debt
  2. Mid Cap (Rs. 13,026 cr)
  3. Sector – Pharma
  4. Current market price at Rs. 715.05
  5. 52 w H/L (Rs.) – 778/502
  6. Dividend Yield: 0.8%
  7. Debt Equity: -0.14%
  8. Low Debt to Equity ratio (avg) at 0.01 times
  9. Positive Q4 23 results:
    *Net profit up by 342.7%, PBT up by 196.5% at Rs. 295.40 cr
    *PAT is up by 183.6%, at Rs. 275.80 cr
    *HY ROCE at 17.39 %
  10. Stock is technically in a Bullish range
    *The technical trend improved from Mildly Bullish on 26 June 2023. Ever since the stock has generated 2.54% returns
    *MACD, Bollinger Band, KST and OBV are bullish
  11. Attractive PE at 17.06 compared to sector PE of 37.98. Its PB is at 2.86, while the sector has 4.88
  12. High Institutional Holdings at 27.29%, their stake increased by 0.63% over the previous quarter

Lowlights/Risks

  1. Operating profit fell at an annual rate of -2.19% over the last 5 years
  2. 1-year return is 9.68% vs Nifty Pharma 9.63%
  3. Underperformed Nifty (21.80%) in the last year
  4. Average ROE of 12%

Useful comparisons
1. Natco Pharma vs Sensex

Absolute 1-year Returns Volatility
Natco Pharma 9.68% 26.16%
SENSEX 23.67% 11.71%

2. Natco Pharma vs peers (valuation)

Company Natco Pharma Gland Pharma Ajanta Pharma Pfizer Sanofi India
Price to Book 2.6 2.3 5.3 5.4 13
Ratio 17.5 23.3 30.8 29.6 27.6
PE Ratio PEG Ratio Dividend 0.1 0 0 0 0
Yield 0.80% 0% 0.50% 1.70% 8.30%
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