Natco Pharma Reports Strong Financial Performance in Q1 FY25, Promising Investment Opportunity

Aug 12 2024 06:46 PM IST
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Natco Pharma has reported a strong financial performance in the quarter ended June 2024, with a score of 27, an increase from the previous quarter's score of 23. The company's PBT and PAT have shown significant growth, along with an efficient inventory turnover ratio and high net sales. However, the increase in non-operating income may not be sustainable.

Natco Pharma, a leading player in the pharmaceutical industry, has recently announced its financial results for the quarter ended June 2024. The company has shown a very positive performance in this quarter, with a score of 27, which is an improvement from the previous quarter’s score of 23.

One of the key factors contributing to this positive performance is the company’s Profit Before Tax (PBT) less Other Income, which has grown by 95.5% compared to the average PBT of the previous four quarters. This trend is expected to continue in the near term. Similarly, the Profit After Tax (PAT) has also shown a significant growth of 92.6% compared to the average PAT of the previous four quarters.


Natco Pharma has also been able to sell its inventory at a faster rate, with an Inventory Turnover Ratio of 5.71 times in the last five half yearly periods. This indicates the company’s efficiency in managing its inventory. The Net Sales for the quarter have also shown a positive trend, with the highest amount of Rs 1,362.60 crore in the last five quarters.


The company’s Operating Profit (PBDIT) and Operating Profit Margin have also shown a positive trend, with the highest amount of Rs 804.80 crore and 59.06% respectively in the last five quarters. This indicates an improvement in the company’s efficiency and profitability.


Natco Pharma has also created higher earnings for its shareholders, with the highest Earnings per Share (EPS) of Rs 37.35 in the last five quarters. The company’s short term liquidity has also improved, with the highest amount of Cash and Cash Equivalents of Rs 952.90 crore in the last six half yearly periods.


However, the company’s Non Operating Income has shown a significant increase in this quarter, which may not be sustainable in the long run. Overall, Natco Pharma has shown a strong financial performance in the quarter ended June 2024, making it a promising investment opportunity. MarketsMOJO has also recommended a ‘Buy’ call for the company’s stock, further reinforcing its positive outlook.


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