English
Specials
    Upgrade

    Moneycontrol

    Budget 2023Budget 2023

    PARTNERS

    • Tata AIA Life Insurance
    • Hafele
    • Motilal Oswal
    • SMC Global Securities Limited
    • SBI Life
    • DSP Mutual Fund
    Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now
    you are here: HomeNewsBusinessStocks

    Buy Natco Pharma; target of Rs 704: Geojit

    Geojit is bullish on Natco Pharma has recommended buy rating on the stock with a target price of Rs 704 in its research report dated December 05, 2022.

    Broker Research
    December 05, 2022 / 12:26 PM IST
     
     
    live
    • bselive
    • nselive
    Volume
    Todays L/H
    More

    Geojit's research report on Natco Pharma

    NATCO Pharma (NATCO) is an India-based vertically integrated and R&D focused enterprise, engaged in developing, manufacturing and marketing finished dosage formulations and active pharmaceutical ingredients and intermediates. Natco witnessed 67% revenue growth in H1FY23, owing to robust Revlimid sales. EBITDA margins expanded 1436bps to 37% in H1FY23 from 23% in H1FY22 led by strong contribution from export formulations. Export formulation business registered a 204% growth in H1FY23 with revenues at Rs. 1020 cr. Brazilian and Canadian subs, backed by strong new launches, have reported robust growth with 40-50% share in profitability. In the Crop Health Science Division, the CTPR (Chlorantraniliprole) associated products which were launched are expected to drive earnings in the near-term. We remain optimistic on Natco’s future profitability backed by the traction in CTPR and Revlimid sales and recovery in domestic formulation.

    Outlook

    Hence, we upgrade our rating to a Buy with a target price of Rs.704 based on 16x FY24E EPS.