Natco Pharma Ltd

₹ 503 -4.87%
02 Feb 2:33 p.m.
About

NATCO Pharma Limited (NATCO) is a vertically integrated, research and development focused pharmaceutical company engaged in developing, manufacturing, and marketing complex products for niche therapeutic areas. [1]
NATCO has established its presence in all three business segments viz. finished dosage formulations (“FDF”), active pharmaceutical ingredients (“APIs”), Contract Manufacturing Business.[2]

Key Points

Exports of formulations - Complex Generics (49% of sales)[1]
The company is focused on niche opportunities in the US
In FY22, Completed acquisition of Dash Pharmaceuticals LLC to build a frontend presence in the US [2]
Focus on Para IV and First-to-File molecules
Started winning tenders in Asian markets including Malaysia and Thailand

Company is focused on high-barrier-to-entry products that are typically characterized by one or more of the following: Intricate Chemistry, Challenging delivery systems, Difficult or complex manufacturing process

  • Market Cap 9,191 Cr.
  • Current Price 503
  • High / Low 939 / 503
  • Stock P/E 22.6
  • Book Value 250
  • Dividend Yield 0.87 %
  • ROCE 3.91 %
  • ROE 3.28 %
  • Face Value 2.00

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Company is expected to give good quarter
  • Company has been maintaining a healthy dividend payout of 32.2%

Cons

  • The company has delivered a poor sales growth of -0.76% over past five years.
  • Company has a low return on equity of 8.50% over last 3 years.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022
486 482 455 563 802 355 331 410 377 560 597 885 432
351 354 326 392 526 273 255 300 307 459 615 489 337
Operating Profit 134 129 128 171 276 82 76 110 70 102 -19 395 95
OPM % 28% 27% 28% 30% 34% 23% 23% 27% 19% 18% -3% 45% 22%
33 31 22 19 26 31 28 17 38 30 14 34 20
Interest 6 5 4 4 3 3 4 2 4 5 7 4 4
Depreciation 22 25 30 28 29 30 30 34 35 36 38 40 42
Profit before tax 139 129 117 158 271 80 71 91 70 91 -50 386 70
Tax % 16% 19% 20% 23% 25% 21% 25% 18% 7% 12% -2% 17% 19%
Net Profit 118 104 93 122 204 63 53 75 65 80 -50 320 57
EPS in Rs 6.54 5.75 5.17 6.74 11.11 3.44 2.91 4.11 3.57 4.41 -2.77 17.55 3.11
Raw PDF

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 TTM
460 524 661 739 825 1,042 2,020 2,185 2,094 1,915 2,052 1,945 2,474
364 414 511 560 615 777 1,337 1,256 1,300 1,332 1,446 1,681 1,900
Operating Profit 96 109 150 179 210 266 683 928 795 583 606 264 574
OPM % 21% 21% 23% 24% 25% 25% 34% 42% 38% 30% 30% 14% 23%
-1 9 1 17 0 12 14 40 130 107 104 99 99
Interest 14 23 26 37 32 23 18 15 19 22 13 18 20
Depreciation 16 16 22 30 47 51 54 66 81 100 117 143 155
Profit before tax 65 80 102 129 132 204 624 887 825 569 580 202 498
Tax % 20% 26% 36% 24% 1% 24% 22% 22% 22% 19% 24% 16%
Net Profit 52 58 66 98 130 156 485 695 642 458 442 170 407
EPS in Rs 3.80 3.83 4.58 6.21 8.10 9.02 27.88 37.74 35.24 25.31 24.18 9.31 22.30
Dividend Payout % 11% 16% 17% 16% 12% 14% 24% 22% 18% 27% 22% 48%
Compounded Sales Growth
10 Years: 14%
5 Years: -1%
3 Years: -2%
TTM: 68%
Compounded Profit Growth
10 Years: 9%
5 Years: -22%
3 Years: -40%
TTM: 59%
Stock Price CAGR
10 Years: 19%
5 Years: -11%
3 Years: -5%
1 Year: -42%
Return on Equity
10 Years: 15%
5 Years: 13%
3 Years: 9%
Last Year: 3%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Sep 2022
28 31 31 33 33 35 35 37 36 36 36 36 36
Reserves 324 442 502 693 813 1,261 1,614 3,035 3,452 3,737 4,085 4,227 4,535
220 259 338 240 312 113 222 173 386 316 268 416 86
135 173 209 229 226 413 446 470 428 498 403 430 421
Total Liabilities 707 905 1,080 1,196 1,384 1,822 2,318 3,715 4,303 4,588 4,792 5,109 5,078
270 320 583 645 710 710 833 1,019 1,227 1,584 2,023 2,312 2,379
CWIP 76 164 106 124 129 212 336 480 638 518 223 130 144
Investments 63 63 2 2 2 22 32 76 169 112 304 308 378
299 359 389 425 543 878 1,116 2,140 2,270 2,373 2,242 2,360 2,177
Total Assets 707 905 1,080 1,196 1,384 1,822 2,318 3,715 4,303 4,588 4,792 5,109 5,078

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
37 65 61 144 93 112 346 464 669 417 299 46
-89 -125 -111 -108 -120 -176 -299 -1,116 -611 -175 -107 4
77 63 26 -35 29 154 -48 651 -51 -251 -186 35
Net Cash Flow 25 3 -24 0 2 90 -1 -2 7 -8 6 85

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Debtor Days 56 66 72 59 85 92 86 106 88 105 73 116
Inventory Days 201 198 220 283 331 482 213 389 545 534 570 496
Days Payable 150 166 159 172 189 372 160 239 224 244 104 105
Cash Conversion Cycle 107 98 132 170 228 202 138 257 410 395 539 507
Working Capital Days 73 54 67 71 99 131 111 244 275 355 294 335
ROCE % 17% 16% 17% 18% 17% 18% 39% 35% 23% 14% 13% 4%

Shareholding Pattern

Numbers in percentages

3 recently
Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022
48.93 48.93 48.91 48.91 48.87 48.87 48.87 48.86 48.81 48.80 48.80 48.82
21.67 20.40 19.32 18.17 16.35 13.73 12.53 12.26 11.94 11.65 11.67 11.73
10.57 12.82 13.71 15.04 16.14 16.21 17.78 18.08 16.15 15.30 14.30 14.93
18.83 17.85 18.07 17.88 18.65 21.19 20.82 20.80 23.10 24.25 25.23 24.53

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

Click on the line-items to see the names of individual entities.

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