Last Updated : Feb 18, 2019 04:01 PM IST | Source:

Hold Natco Pharma; target of Rs 635: ICICI Direct

ICICI Direct recommended hold rating on Natco Pharma with a target price of Rs 635 in its research report dated February 14, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Natco Pharma

Q3FY19 results were higher than I-direct estimates on all fronts. Revenues de-grew 1% YoY to Rs 556.7 crore (I-direct estimate: Rs 534.7 crore) on the back of high base of Oseltamivir (flu) in the US EBITDA margins were at 37.4% against 51.0% in Q3FY18 (I-direct estimate: 35.4%) mainly due to high base of gOseltamivir (flu) in the US. EBITDA de-grew 27.3% YoY to Rs 208.4 crore against I-direct estimates of Rs 189.2 crore Net profit de-grew 26.7% YoY to Rs 159.5 crore (I-direct estimate: Rs 151.7 crore), in line with the operational performance.


We value the stock on an SOTP basis. Accordingly, we arrive at our new target price of Rs 635, which includes base business value of ~Rs 440 (25x FY21E EPS of Rs 17.7) + ~Rs 195 for NPV of FTF/Para IVs in the US.

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.

First Published on Feb 18, 2019 04:01 pm
More From
Follow us on
Available On
PCI DSS Compliant