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Hold Natco Pharma; target of Rs 1010: ICICI Direct

ICICI Direct recommended hold rating on Natco Pharma with a target price of Rs 1010 in its research report dated June 18, 2021.

June 21, 2021 / 04:24 PM IST
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Todays L/H

ICICI Direct's research report on Natco Pharma

Natco’s Q4FY21 revenues de-grew 27.2% YoY to Rs 331.3 crore due to decline across verticals. Export formulations declined 27.6% YoY to Rs 158.8 crore due to significant drop in gTamiflu sales. Domestic formulations degrew 20.3% to Rs 81.8 crore amid a sharp fall in oncology sales. API business declined 26.6% YoY Rs 70.8 crore. EBITDA margins contracted 521 bps YoY to 23%, mainly due to higher employee cost. EBITDA fell 40.6% YoY to Rs 76.2 crore. Ensuing PAT declined 43.7% YoY to Rs 53 crore.


We ascribe a target price of Rs 1010 (earlier Rs 885), which includes base business value of ~Rs 815 (35x FY23E EPS of Rs 23.3) + Rs 195 for NPV for gRevlimid. We maintain HOLD.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jun 21, 2021 04:24 pm

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