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NATCO Pharma Limited
(NATCOPHARM)
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Rating:74Outperform
Price Target:
₹928.00
▲(8.75% Upside)
Action:Reiterated
Date:09/06/26
Overall score is driven by strong financial quality (high profitability, solid cash flow since 2023, and very low leverage). This is tempered by weak technical momentum (trading below key moving averages with negative MACD), while valuation is reasonable with a mid-range P/E but a low dividend yield.
Positive Factors
Very low leverage
Very low leverage gives NATCO Pharma substantial financial flexibility and limits balance-sheet risk. A conservatively financed structure can support investment in product development, manufacturing capacity and market expansion while reducing pressure from interest costs during weaker operating periods.
Negative Factors
Recent revenue contraction
The 2026 revenue decline shows that NATCO Pharma’s top-line performance is not consistently expanding despite strong margins. Continued contraction would reduce operating leverage, constrain reinvestment capacity and make future earnings more dependent on individual product launches or market outcomes.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Very low leverage gives NATCO Pharma substantial financial flexibility and limits balance-sheet risk. A conservatively financed structure can support investment in product development, manufacturing capacity and market expansion while reducing pressure from interest costs during weaker operating periods.
Read all positive factors
NATCO Pharma Limited (NATCOPHARM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹145.99B
Dividend Yield0.55%
Average Volume (3M)47.66K
Price to Earnings (P/E)12.8
Beta (1Y)0.98
Revenue Growth-20.73%
EPS Growth-32.59%
CountryIN
Employees4,433
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)63.89
Shares Outstanding179,109,860
10 Day Avg. Volume38,975
30 Day Avg. Volume47,663
Financial Highlights & Ratios
PEG Ratio-0.51
Price to Book (P/B)1.95
Price to Sales (P/S)4.40
P/FCF Ratio13.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)43.28
Revenue Forecast (FY)₹32.51B
NATCO Pharma Limited Business Overview & Revenue Model
Company Description
NATCO Pharma Limited, a pharmaceutical company, engages in the research and development, manufacturing, and marketing of finished dosage formulations, active pharmaceutical ingredients (APIs), and intermediates in India, the United States, and int...
How the Company Makes Money
NATCO Pharma makes money by developing and manufacturing pharmaceutical products and earning revenue from (1) sales of finished dosage formulations (branded generics in India and generic/specialty products in export markets), (2) sales of active p...
NATCO Pharma Limited Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.85B | 40.78B | 44.32B | 40.02B | 27.09B | 19.46B |
| Gross Profit | 26.53B | 33.88B | 37.05B | 32.53B | 20.54B | 13.62B |
| EBITDA | 12.88B | 17.34B | 21.44B | 17.51B | 9.67B | 2.60B |
| Net Income | 11.44B | 14.19B | 18.85B | 13.88B | 7.15B | 1.70B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 110.74B | 86.31B | 69.06B | 56.57B | 51.09B |
| Cash, Cash Equivalents and Short-Term Investments | 21.29B | 21.29B | 24.97B | 17.78B | 11.25B | 7.60B |
| Total Debt | 0.00 | 7.14B | 2.79B | 3.86B | 1.76B | 4.32B |
| Total Liabilities | -92.21B | 18.53B | 10.19B | 10.53B | -34.80B | 8.46B |
| Stockholders Equity | 92.21B | 92.21B | 76.07B | 58.53B | 48.74B | 42.64B |
Cash Flow | ||||||
| Free Cash Flow | 10.10B | 13.77B | 14.28B | 8.72B | 6.43B | -1.96B |
| Operating Cash Flow | 11.91B | 17.68B | 16.97B | 12.12B | 8.49B | 465.00M |
| Investing Cash Flow | -11.89B | -20.82B | -14.14B | -10.33B | -4.77B | -53.00M |
| Financing Cash Flow | -765.00M | 2.98B | -2.11B | -2.47B | -3.63B | 348.00M |
NATCO Pharma Limited Technical Analysis
Negative
853.35
Price Trends
904.04
Negative
962.26
Negative
943.51
Negative
Market Momentum
-24.12
Positive
28.23
Positive
18.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NATCOPHARM, the sentiment is Negative. The current price of 853.35 is below the 20-day moving average (MA) of 854.09, below the 50-day MA of 904.04, and below the 200-day MA of 943.51, indicating a bearish trend. The MACD of -24.12 indicates Positive momentum. The RSI at 28.23 is Positive, neither overbought nor oversold. The STOCH value of 18.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NATCOPHARM.
NATCO Pharma Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹145.99B | 12.76 | ― | 0.55% | -20.73% | -32.59% | |
70 Outperform | ₹159.64B | 22.99 | ― | 1.48% | 14.12% | 14.98% | |
67 Neutral | ₹109.33B | 17.78 | ― | 0.42% | 7.28% | 68.82% | |
64 Neutral | ₹225.41B | 33.60 | ― | 0.19% | 24.83% | 36.88% | |
58 Neutral | ₹354.41B | 86.62 | ― | 1.27% | 18.37% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:NATCOPHARM
NATCO Pharma Limited
815.10
-32.23
-3.80%
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812.15
-145.84
-15.22%
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IN:STAR
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1,186.10
302.78
34.28%
IN:WOCKPHARMA
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2,181.15
669.55
44.29%
NATCO Pharma Limited Corporate Events
Natco Pharma Plans Investor Meetings in Mumbai and Hong Kong
Aug 24, 2026
Natco Pharma has scheduled a series of investor meetings on August 27 and 28, 2026, including an in-person group meeting in Mumbai organised by Nuvama Wealth Management and ICICI Securities. The company will also participate in meetings in Hong Ko...
Natco Pharma Schedules Mumbai Investor Meetings, Affirms No UPSI Disclosure
Aug 16, 2026
Natco Pharma has notified the stock exchanges that its officials will participate in an in-person group investor meeting in Mumbai, organized by Nuvama Wealth Management and ICICI Securities, from 19 August 2026 to 21 August 2026. The company stat...
Natco Pharma Publishes Q1 FY27 Results and Announces Interim Dividend
Aug 16, 2026
Natco Pharma has published its unaudited financial results for the quarter ended June 30, 2026, in leading newspapers including Business Line, Financial Express, and Nava Telangana. The company also announced an interim dividend for the financial ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.