ScoreWhy is Natco Pharma Ltd. ?
1
High Management Efficiency with a high ROE of 16.51%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Poor long term growth as Net Sales has grown by an annual rate of 14.72% over the last 5 years
4
With a fall in EPS of -31.18%, the company declared Very Negative results in Mar 26
- The company has declared negative results for the last 2 consecutive quarters
- NET SALES(Q) At Rs 739.10 cr has Fallen at -35.2% (vs previous 4Q average)
- PAT(Q) At Rs 267.90 cr has Fallen at -31.2% (vs previous 4Q average)
- ROCE(HY) Lowest at 15.37%
5
Stock is technically in a Mildly Bullish range
- The stocks RSI and OBV technical factors are also Bullish
6
With ROE of 15.4, it has a Attractive valuation with a 1.7 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 0.54%, its profits have fallen by -24.8%
7
High Institutional Holdings at 22.83%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 2.28% over the previous quarter.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Natco Pharma should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Natco Pharma for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Natco Pharma
0.21%
0.01
39.54%
Sensex
-5.12%
-0.38
13.26%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.72%
EBIT Growth (5y)
20.24%
EBIT to Interest (avg)
51.42
Debt to EBITDA (avg)
0.42
Net Debt to Equity (avg)
-0.15
Sales to Capital Employed (avg)
0.52
Tax Ratio
7.98%
Dividend Payout Ratio
5.70%
Pledged Shares
0
Institutional Holding
22.83%
ROCE (avg)
21.62%
ROE (avg)
16.51%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
34
Price to Book Value
1.68
EV to EBIT
11.48
EV to EBITDA
9.83
EV to Capital Employed
1.81
EV to Sales
3.46
PEG Ratio
NA
Dividend Yield
0.58%
ROCE (Latest)
15.76%
ROE (Latest)
15.38%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 4.63 times
-24What is not working for the Company
NET SALES(Q)
At Rs 739.10 cr has Fallen at -35.2% (vs previous 4Q average
PAT(Q)
At Rs 267.90 cr has Fallen at -31.2% (vs previous 4Q average
ROCE(HY)
Lowest at 15.37%
OPERATING PROFIT TO NET SALES(Q)
Lowest at 17.26%
PBDIT(Q)
Lowest at Rs 127.60 cr.
PBT LESS OI(Q)
Lowest at Rs 66.30 cr.
NON-OPERATING INCOME(Q)
is 53.99 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Natco Pharma
Debtors Turnover Ratio- Half Yearly
Highest at 4.63 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Natco Pharma
Net Sales - Quarterly
At Rs 739.10 cr has Fallen at -35.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,140.05 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 66.30 cr has Fallen at -83.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 391.63 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 267.90 cr has Fallen at -31.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 389.30 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 17.26% and Fallen
each quarter in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 127.60 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 66.30 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 53.99 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
