ScoreWhy is Natco Pharma Ltd. ?
1
High Management Efficiency with a high ROE of 16.25%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Poor long term growth as Net Sales has grown by an annual rate of 13.76% over the last 5 years
4
Flat results in Sep 25
- PAT(Latest six months) At Rs 999.10 cr has Grown at -25.76%
- ROCE(HY) Lowest at 21.17%
- DPR(Y) Lowest at 5.70%
5
With ROE of 17.8, it has a Attractive valuation with a 1.9 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -35.02%, its profits have fallen by -20.9%
6
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -1.37% over the previous quarter and collectively hold 19.96% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
7
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -35.02% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Natco Pharma should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Natco Pharma for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Natco Pharma
-35.02%
-0.83
41.99%
Sensex
4.83%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.76%
EBIT Growth (5y)
20.15%
EBIT to Interest (avg)
55.77
Debt to EBITDA (avg)
0.42
Net Debt to Equity (avg)
-0.34
Sales to Capital Employed (avg)
0.52
Tax Ratio
17.17%
Dividend Payout Ratio
5.70%
Pledged Shares
0
Institutional Holding
19.96%
ROCE (avg)
21.29%
ROE (avg)
16.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
34
Price to Book Value
1.93
EV to EBIT
9.28
EV to EBITDA
7.92
EV to Capital Employed
2.41
EV to Sales
3.14
PEG Ratio
NA
Dividend Yield
0.54%
ROCE (Latest)
25.97%
ROE (Latest)
17.79%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CF(Y)
Highest at Rs 1,696.80 Cr
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 2,690.20 cr
NET SALES(Q)
At Rs 1,363.00 cr has Grown at 24.0% (vs previous 4Q average
PBT LESS OI(Q)
At Rs 513.70 cr has Grown at 21.5% (vs previous 4Q average
PAT(Q)
At Rs 518.40 cr has Grown at 22.1% (vs previous 4Q average
-6What is not working for the Company
PAT(Latest six months)
At Rs 999.10 cr has Grown at -25.76%
ROCE(HY)
Lowest at 21.17%
DPR(Y)
Lowest at 5.70%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.55 times
Loading Valuation Snapshot...
Here's what is working for Natco Pharma
Operating Cash Flow - Annually
Highest at Rs 1,696.80 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
At Rs 1,363.00 cr has Grown at 24.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,098.95 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 513.70 cr has Grown at 21.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 422.90 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 518.40 cr has Grown at 22.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 424.40 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 2,690.20 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Natco Pharma
Debtors Turnover Ratio- Half Yearly
Lowest at 2.55 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio (DPR) - Annually
Lowest at 5.70%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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