NATCO Pharma Limited (NATCOPHARM) AI Stock Analysis

• Market Cap: ₹145.28B
• Dividend Yield: 0.62%
• Average Volume (3M): 49.73K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.14
• Revenue Growth: 4.14%
• EPS Growth: 3.72%
• Country: IN
• Employees: 4,016
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 26.90
• Shares Outstanding: 179,109,860
• 10 Day Avg. Volume: 59,531
• 30 Day Avg. Volume: 49,726
• PEG Ratio: 0.21
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 3.26
• P/FCF Ratio: 10.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹948.00
• Price Target Upside: 17.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ₹1,086.00 ▲(34.36% Upside)

NATCO Pharma Limited's stock is rated well due to its strong financial performance and attractive valuation. The company shows robust revenue growth and profitability, with effective cash management and low leverage. Technical indicators are mixed, suggesting some caution, but the stock's low P/E ratio indicates it may be undervalued. Absence of earnings call data and significant corporate events means these factors did not influence the score.

NATCO Pharma Limited Business Overview & Revenue Model

Company Description

NATCO Pharma Limited, a pharmaceutical company, develops, manufactures, and markets finished dosage formulations and active pharmaceutical ingredients (APIs). It offers formulations in various therapeutic areas, including cancers of blood, liver, kidney, lung, brain, breast, ovary, etc.; and APIs in various categories, such as oncology, central nervous system, pain management, and CV care. The company also offers orthopedic products comprising bisphosphonates, which are oral and injectable drugs; and gastroenterology products consisting of novel drugs for chronic hepatitis-B and hepatitis-C, as well as contract manufacturing services. In addition, it provides cardiology and diabetology products for the treatment of hypertension, stable angina and CHF. The company markets its products in approximately 40 countries, including India, the United States, and internationally. NATCO Pharma Limited was incorporated in 1981 and is headquartered in Hyderabad, India.

How the Company Makes Money

NATCO Pharma Limited generates revenue primarily through the sale of its generic pharmaceutical products and APIs. The company's revenue streams include domestic sales in India and exports to international markets, with a significant portion of its income derived from the oncology segment. NATCO also engages in partnerships and collaborations with other pharmaceutical companies to co-develop and market products, enhancing its market reach and revenue potential. Additionally, the company invests in research and development to innovate and expand its product portfolio, ensuring a steady flow of new and competitive offerings in the pharmaceutical market.

NATCO Pharma Limited Financial Statement Overview

Summary

NATCO Pharma Limited demonstrates strong financial health with robust revenue growth, high profitability margins, and a solid balance sheet. It effectively converts earnings into cash and maintains low leverage, indicating financial stability. However, attention is needed on capital expenditures and managing liabilities to ensure sustained performance.

Income Statement

NATCO Pharma Limited shows strong income statement performance with notable revenue growth of 10.7% from 2024 to 2025. The company's gross profit margin is robust at 65.7%, and the net profit margin stands at a healthy 42.6%. The EBIT margin of 44.3% and EBITDA margin of 57.6% in 2025 reflect efficient cost management and strong operational performance. However, a slight decline in gross profit from 2024 indicates a need for careful monitoring.

Balance Sheet

NATCO Pharma Limited has a strong balance sheet with a low debt-to-equity ratio of 0.04, indicating low financial leverage. The return on equity is impressive at 24.8%, showcasing effective use of shareholders' funds. The equity ratio is robust at 88.1%, emphasizing financial stability. However, a decrease in gross profit and increasing liabilities over the years highlight potential areas of concern.

Cash Flow

The cash flow statement highlights strong free cash flow growth of 67.4% from 2024 to 2025, indicating improved cash-generating capability. The operating cash flow to net income ratio of 0.97 suggests efficient conversion of profits into cash. Furthermore, the free cash flow to net income ratio of 0.76 reflects effective cash management. Despite the positive trends, careful attention to capital expenditures is advised to maintain free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.96B	44.30B	40.02B	27.07B	19.05B	20.56B
Gross Profit	33.95B	29.10B	32.53B	20.80B	12.23B	15.24B
EBITDA	23.30B	25.50B	18.80B	10.40B	3.63B	6.07B
Net Income	16.98B	18.85B	13.88B	7.15B	1.70B	4.41B
Balance Sheet
Total Assets	0.00	86.31B	69.06B	56.57B	51.09B	47.92B
Cash, Cash Equivalents and Short-Term Investments	24.97B	24.97B	17.78B	11.25B	7.60B	8.18B
Total Debt	0.00	2.79B	3.86B	1.76B	4.32B	2.84B
Total Liabilities	-76.12B	10.19B	10.53B	-34.80B	8.46B	6.68B
Stockholders Equity	76.12B	76.07B	58.53B	48.74B	42.64B	41.22B
Cash Flow
Free Cash Flow	0.00	14.28B	8.72B	6.43B	-1.96B	442.00M
Operating Cash Flow	0.00	16.97B	12.12B	8.49B	465.00M	2.99B
Investing Cash Flow	0.00	-14.14B	-10.33B	-4.77B	-53.00M	-1.03B
Financing Cash Flow	0.00	-2.11B	-2.47B	-3.63B	348.00M	-1.86B

NATCO Pharma Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 808.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 808.25 is below the 20-day moving average (MA) of 839.21, below the 50-day MA of 871.92, and below the 200-day MA of 951.89, indicating a bearish trend. The MACD of -18.66 indicates Positive momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 30.99 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATCOPHARM	74 Outperform	₹145.28B	8.56	―	0.62%	4.14%	3.72%
MARKSANS	69 Neutral	₹74.91B	21.39	―	0.48%	16.94%	4.90%
RAINBOW	59 Neutral	₹135.16B	52.50	―	0.23%	14.82%	19.38%
JUBLPHARMA	56 Neutral	₹174.83B	37.77	―	0.46%	8.12%	-16.64%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLENMARK	48 Neutral	₹553.79B	73.47	―	0.13%	10.99%	―