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NATCO Pharma Limited (IN:NATCOPHARM)
:NATCOPHARM
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NATCO Pharma Limited (NATCOPHARM) AI Stock Analysis

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IN:NATCOPHARM

NATCO Pharma Limited

(NATCOPHARM)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
₹915.00
▲(9.82% Upside)
NATCO Pharma Limited's strong financial performance is the most significant factor contributing to its overall score, supported by robust revenue growth and profitability. The technical analysis indicates a bearish trend, which slightly offsets the positive financials. The valuation suggests the stock is undervalued, providing potential for appreciation. The absence of earnings call data and corporate events does not impact the score.

NATCO Pharma Limited (NATCOPHARM) vs. iShares MSCI India ETF (INDA)

NATCO Pharma Limited Business Overview & Revenue Model

Company DescriptionNATCO Pharma Limited (NATCOPHARM) is an Indian multinational pharmaceutical company engaged in the development, manufacture, and marketing of a wide range of pharmaceutical products. The company operates primarily in the sectors of generic formulations, active pharmaceutical ingredients (APIs), and biosimilars. NATCOPHARM specializes in complex generics and niche therapeutic areas, including oncology, nephrology, and anti-viral medications, with a commitment to providing affordable healthcare solutions globally.
How the Company Makes MoneyNATCO Pharma generates revenue through multiple key streams, including the sale of its generic pharmaceutical products, APIs, and biosimilars in both domestic and international markets. The company capitalizes on its extensive portfolio of patented products and also engages in licensing agreements and strategic partnerships with other pharmaceutical companies, which contribute to its earnings. Additionally, NATCOPHARM invests in research and development to innovate and expand its product offerings, thereby enhancing its market presence and financial performance. The growing demand for affordable medications, especially in emerging markets, further supports the company's revenue growth.

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. The company 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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue43.98B44.32B40.02B27.09B19.46B20.56B
Gross Profit36.18B37.05B32.53B20.54B13.62B15.24B
EBITDA19.12B21.44B17.51B9.67B2.60B6.07B
Net Income16.98B18.85B13.88B7.15B1.70B4.41B
Balance Sheet
Total Assets0.0086.31B69.06B56.57B51.09B47.92B
Cash, Cash Equivalents and Short-Term Investments24.97B24.97B17.78B11.25B7.60B8.18B
Total Debt0.002.79B3.86B1.76B4.32B2.84B
Total Liabilities-76.12B10.19B10.53B-34.80B8.46B6.68B
Stockholders Equity76.12B76.07B58.53B48.74B42.64B41.22B
Cash Flow
Free Cash Flow0.0014.28B8.72B6.43B-1.96B442.00M
Operating Cash Flow0.0016.97B12.12B8.49B465.00M2.99B
Investing Cash Flow0.00-14.14B-10.33B-4.77B-53.00M-1.03B
Financing Cash Flow0.00-2.11B-2.47B-3.63B348.00M-1.86B

NATCO Pharma Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price833.15
Price Trends
50DMA
844.26
Negative
100DMA
890.37
Negative
200DMA
910.69
Negative
Market Momentum
MACD
-4.25
Negative
RSI
49.89
Neutral
STOCH
47.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NATCOPHARM, the sentiment is Positive. The current price of 833.15 is above the 20-day moving average (MA) of 824.41, below the 50-day MA of 844.26, and below the 200-day MA of 910.69, indicating a neutral trend. The MACD of -4.25 indicates Negative momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 47.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NATCOPHARM.

NATCO Pharma Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
₹147.98B8.720.60%4.14%3.72%
₹80.16B22.890.43%16.94%4.90%
₹141.02B54.300.22%14.82%19.38%
₹175.16B37.130.45%8.12%-16.64%
$7.86B-0.30-43.30%2.27%22.53%-2.21%
₹522.88B69.690.13%10.99%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:NATCOPHARM
NATCO Pharma Limited
828.45
-567.43
-40.65%
IN:GLENMARK
Glenmark Pharmaceuticals Limited
1,883.60
194.45
11.51%
IN:GLS
Glenmark Life Sciences Limited
910.00
-137.18
-13.10%
IN:JUBLPHARMA
Jubilant Pharmova Limited
1,119.60
-87.59
-7.26%
IN:MARKSANS
Marksans Pharma Limited
183.55
-104.93
-36.37%
IN:RAINBOW
Rainbow Childrens Medicare Limited
1,380.60
-228.45
-14.20%

NATCO Pharma Limited Corporate Events

Natco Pharma Ensures Regulatory Compliance with SEBI Regulations
Oct 9, 2025

Natco Pharma Limited has submitted a certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. This certificate confirms that securities received for dematerialization have been processed correctly, with updates made to the depositories’ records, ensuring compliance with regulatory requirements. This announcement underscores Natco Pharma’s commitment to maintaining regulatory compliance and transparency in its operations, which is crucial for its stakeholders and market reputation.

Natco Pharma’s Kothur Facility Receives VAI Status from FDA
Sep 18, 2025

Natco Pharma Limited announced that its pharmaceutical division in Kothur, Hyderabad, has received an Establishment Inspection Report (EIR) from the U.S. Food and Drug Administration (FDA), classifying the facility as ‘Voluntary Action Indicated’ (VAI). This classification indicates that the FDA inspection found some issues that need correction but are not significant enough to warrant regulatory action. The VAI status is a positive outcome for Natco Pharma as it allows the company to continue its operations without major disruptions, potentially enhancing its credibility and market position in the pharmaceutical industry.

Natco Pharma Publishes 42nd AGM Details in Leading Newspapers
Sep 1, 2025

Natco Pharma Limited has announced the publication of its 42nd Annual General Meeting details in prominent newspapers, Financial Express and Nava Telangana, as part of regulatory compliance. This announcement underscores the company’s commitment to transparency and adherence to regulatory requirements, which may enhance its reputation among stakeholders and investors.

Natco Pharma Declares Interim Dividend and Plans Capital Increase
Aug 12, 2025

Natco Pharma Limited’s Board of Directors has declared an interim dividend of Rs. 2 per equity share for the financial year 2025-26, with the record date set for August 19, 2025, and payment commencing on August 26, 2025. Additionally, the Board approved an increase in the company’s authorized capital to Rs. 45 crore, subject to shareholder approval, and announced plans for the 42nd Annual General Meeting to be held via video conference.

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.Date of analysis: Oct 31, 2025