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 -34.05%, 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 2.26% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -34.05% 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
27.66%
-0.81
41.96%
Sensex
-4.3%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.95%
EBIT Growth (5y)
24.24%
EBIT to Interest (avg)
54.22
Debt to EBITDA (avg)
0.42
Net Debt to Equity (avg)
-0.34
Sales to Capital Employed (avg)
0.52
Tax Ratio
16.63%
Dividend Payout Ratio
5.70%
Pledged Shares
0
Institutional Holding
20.55%
ROCE (avg)
21.29%
ROE (avg)
16.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
31
Price to Book Value
2.13
EV to EBIT
9.65
EV to EBITDA
8.33
EV to Capital Employed
2.71
EV to Sales
3.39
PEG Ratio
NA
Dividend Yield
0.49%
ROCE (Latest)
25.97%
ROE (Latest)
17.79%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 2,690.20 cr
-16What is not working for the Company
NET SALES(Q)
At Rs 647.30 cr has Fallen at -41.0% (vs previous 4Q average
PBT LESS OI(Q)
At Rs 103.00 cr has Fallen at -71.6% (vs previous 4Q average
PAT(Q)
At Rs 151.50 cr has Fallen at -60.6% (vs previous 4Q average
ROCE(HY)
Lowest at 21.17%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.55 times
NON-OPERATING INCOME(Q)
is 36.06 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Natco Pharma
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
Net Sales - Quarterly
At Rs 647.30 cr has Fallen at -41.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,096.93 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 103.00 cr has Fallen at -71.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 362.73 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 151.50 cr has Fallen at -60.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 384.68 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 36.06 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
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
