Natco Pharma Limited, founded in Hyderabad in 1981 with an initial investment of INR 3.3 million, has evolved from a single-unit operation with just 20 employees into a major player in the pharmaceutical industry. Today, Natco boasts eight manufacturing facilities across India, equipped with state-of-the-art research laboratories and advanced capabilities in new drug development.
The company, which now employs around 4,500 people, is consistently ranked among the fastest-growing pharmaceutical companies in India. Natco is renowned for its innovative approach to pharmaceutical research and development, underscoring its commitment to advancing healthcare solutions and maintaining its competitive edge in the global market.
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | |
| Promoters + | 48.84% | 49.76% | 49.71% | 49.71% | 49.71% |
| FIIs + | 11.91% | 11.03% | 12.82% | 13.72% | 16.14% |
| DIIs + | 15.38% | 15.15% | 14.01% | 11.26% | 9.69% |
| Public + | 23.87% | 24.08% | 23.48% | 25.32% | 24.46% |
| No. of Shareholders | 1,53,663 | 1,55,181 | 1,63,753 | 2,07,571 | 2,28,467 |
The shareholding patterns of Natco Pharma Limited from March 2023 to March 2024 reveal notable shifts among different investor groups. Promoters increased their stake from 48.84% in March 2023 to 49.76% by June 2023, maintaining it at 49.71% thereafter, demonstrating steady confidence. Foreign Institutional Investors (FIIs) significantly raised their holdings from 11.91% to 16.14%, reflecting growing foreign interest. Conversely, Domestic Institutional Investors (DIIs) reduced their stake from 15.38% to 9.69%, indicating a strategic shift. Public shareholding remained relatively stable, fluctuating slightly from 23.87% to 24.46%. The number of shareholders surged from 153,663 to 228,467, underscoring increasing investor interest and confidence in Natco Pharma.
Natco Pharma Reports Strong Q4 Results: 40% Jump in Net Profit, Revenue Surges 19%
- Net Profit:
- Q4 FY24 saw a significant increase, reaching ₹386.3 crore, marking a 40.1% YoY growth from ₹275.8 crore in Q4 FY23.
- For the full fiscal year FY24, the net profit surged to ₹1,388.3 crore, reflecting an impressive 94.1% rise from ₹715.3 crore in FY23.
- Revenue:
- In Q4 FY24, the company’s revenue stood at ₹1,068.3 crore, showcasing a robust 19% YoY growth from ₹898 crore in Q4 FY23.
- Over the entire FY24, the revenue reached ₹4,126.9 crore, indicating a substantial 46.8% increase from ₹2,811.7 crore in FY23.
- EBITDA:
- Q4 FY24 witnessed a notable rise in EBITDA to ₹497.3 crore, marking a 46.6% YoY increase from ₹339.2 crore in Q4 FY23.
- The EBITDA margin for Q4 FY24 stood at 46.6%, reflecting a significant improvement from 37.8% in Q4 FY23.
- One-time Charges:
- Notable charges included a one-time expense of approximately ₹90 crore in the domestic business segment.
- Additionally, in the Crop Health Sciences division, unexpected stock returns amounted to ₹25 crore due to a poor crop season, while provisions on assets totaled around ₹30 crore.
Below are the trading platforms that you can use to purchase Natco Pharma Limited’s shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
| When | Maximum Price | Minimum Price |
| June 2024 | 1,069.90 | 930.35 |
| July 2024 | 1,059.20 | 921.05 |
| August 2024 | 1,101.57 | 957.89 |
| September 2024 | 1,145.64 | 996.21 |
| October 2024 | 1,123.17 | 976.67 |
| November 2024 | 1,168.10 | 1,015.74 |
| December 2024 | 1,179.78 | 1,025.90 |
In June 2024, the maximum price of Natco Pharma shares is expected to reach 1,069.90, while the minimum price is projected to be 930.35. Moving into July 2024, the maximum price is anticipated to be 1,059.20, with the minimum price forecasted to be 921.05. As we progress into August 2024, the maximum price is predicted to rise to 1,101.57, while the minimum price is expected to be 957.89. September 2024 may see the maximum price increase further to 1,145.64, with the minimum price forecasted to be 996.21. By October 2024, the maximum price is expected to be 1,123.17, and the minimum price is projected to be 976.67. As we enter November 2024, the maximum price is forecasted to reach 1,168.10, while the minimum price is anticipated to be 1,015.74. Finally, in December 2024, the maximum price is expected to peak at 1,179.78, with the minimum price projected to be 1,025.90.
| When | Maximum Price | Minimum Price |
| January 2025 | 1,191.58 | 916.60 |
| February 2025 | 1,203.61 | 925.86 |
| March 2025 | 1,228.89 | 945.30 |
| April 2025 | 1,216.72 | 935.94 |
| May 2025 | 1,181.28 | 908.68 |
| June 2025 | 1,234.44 | 949.57 |
| July 2025 | 1,210.24 | 930.95 |
| August 2025 | 1,247.67 | 959.74 |
| September 2025 | 1,262.64 | 971.26 |
| October 2025 | 1,295.47 | 996.51 |
| November 2025 | 1,327.86 | 1,021.43 |
| December 2025 | 1,387.61 | 1,067.39 |
As we step into January 2025, Natco Pharma’s shares could reach a maximum of 1,191.58 and a minimum of 916.60. By December 2025, the maximum price may rise to 1,387.61, with the minimum expected at 1,067.39.
| When | Maximum Price | Minimum Price |
| January 2026 | 1,429.24 | 1,099.41 |
| February 2026 | 1,393.51 | 1,071.93 |
| March 2026 | 1,421.38 | 1,093.37 |
| April 2026 | 1,450.38 | 1,115.68 |
| May 2026 | 1,436.02 | 1,104.63 |
| June 2026 | 1,471.92 | 1,132.25 |
| July 2026 | 1,443.06 | 1,110.05 |
| August 2026 | 1,487.69 | 1,144.38 |
| September 2026 | 1,517.45 | 1,167.27 |
| October 2026 | 1,556.90 | 1,197.62 |
| November 2026 | 1,595.82 | 1,227.56 |
| December 2026 | 1,635.72 | 1,258.25 |
| When | Maximum Price | Minimum Price |
| January 2027 | 1,652.08 | 1,270.83 |
| February 2027 | 1,694.44 | 1,303.41 |
| March 2027 | 1,760.52 | 1,354.25 |
| April 2027 | 1,726.00 | 1,327.69 |
| May 2027 | 1,675.73 | 1,289.02 |
| June 2027 | 1,751.14 | 1,347.03 |
| July 2027 | 1,716.80 | 1,320.62 |
| August 2027 | 1,769.90 | 1,361.46 |
| September 2027 | 1,831.84 | 1,409.11 |
| October 2027 | 1,879.47 | 1,445.75 |
| November 2027 | 1,926.46 | 1,481.89 |
| December 2027 | 1,974.62 | 1,518.94 |
| When | Maximum Price | Minimum Price |
| January 2028 | 2,014.11 | 1,549.32 |
| February 2028 | 2,065.76 | 1,589.04 |
| March 2028 | 2,146.32 | 1,651.02 |
| April 2028 | 2,104.24 | 1,618.64 |
| May 2028 | 2,042.95 | 1,571.50 |
| June 2028 | 2,134.88 | 1,642.22 |
| July 2028 | 2,093.02 | 1,610.02 |
| August 2028 | 2,157.75 | 1,659.81 |
| September 2028 | 2,233.27 | 1,717.90 |
| October 2028 | 2,291.34 | 1,762.57 |
| November 2028 | 2,348.62 | 1,806.63 |
| December 2028 | 2,407.34 | 1,851.80 |
| When | Maximum Price | Minimum Price |
| January 2029 | 2,455.48 | 1,888.83 |
| February 2029 | 2,518.45 | 1,937.27 |
| March 2029 | 2,616.66 | 2,012.82 |
| April 2029 | 2,565.36 | 1,973.35 |
| May 2029 | 2,490.64 | 1,915.88 |
| June 2029 | 2,602.72 | 2,002.09 |
| July 2029 | 2,551.68 | 1,962.83 |
| August 2029 | 2,630.60 | 2,023.54 |
| September 2029 | 2,722.67 | 2,094.36 |
| October 2029 | 2,793.46 | 2,148.82 |
| November 2029 | 2,863.30 | 2,202.54 |
| December 2029 | 2,934.88 | 2,257.60 |
| When | Maximum Price | Minimum Price |
| January 2030 | 2,993.58 | 2,302.75 |
| February 2030 | 3,070.34 | 2,361.80 |
| March 2030 | 3,190.08 | 2,453.91 |
| April 2030 | 3,127.53 | 2,405.79 |
| May 2030 | 3,036.44 | 2,335.72 |
| June 2030 | 3,173.08 | 2,440.83 |
| July 2030 | 3,110.86 | 2,392.97 |
| August 2030 | 3,207.07 | 2,466.98 |
| September 2030 | 3,319.32 | 2,553.32 |
| October 2030 | 3,405.62 | 2,619.71 |
| November 2030 | 3,490.76 | 2,685.20 |
| December 2030 | 3,578.03 | 2,752.33 |
The maximum price for the year 2030 is ₹3,578.03, expected in December, while the minimum price is ₹2,302.75, projected for January.
Financial Condition of Natco Pharma: Last 5 years
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
| Sales + | 1,915 | 2,052 | 1,945 | 2,707 | 3,999 |
| Expenses + | 1,332 | 1,446 | 1,681 | 1,772 | 2,247 |
| Operating Profit | 583 | 606 | 264 | 936 | 1,751 |
| OPM % | 30% | 30% | 14% | 35% | 44% |
| Other Income + | 107 | 104 | 99 | 105 | 128 |
| Interest | 22 | 13 | 18 | 14 | 19 |
| Depreciation | 100 | 117 | 143 | 164 | 187 |
| Profit before tax | 569 | 580 | 202 | 862 | 1,674 |
| Tax % | 19% | 24% | 16% | 17% | 17% |
| Net Profit + | 458 | 442 | 170 | 715 | 1,388 |
| EPS in Rs | 25.31 | 24.18 | 9.31 | 39.18 | 77.51 |
| Dividend Payout % | 27% | 22% | 48% | 14% | 12% |
- Sales Growth: Natco Pharma witnessed a substantial increase in sales from March 2020 to March 2024, rising from ₹1,915 crore to ₹3,999 crore, indicating robust revenue growth over the period.
- Operating Profit: The company’s operating profit showed significant fluctuations, starting at ₹583 crore in March 2020, dipping to ₹264 crore in March 2022, and then rebounding to ₹1,751 crore in March 2024, showcasing volatility in operational performance.
- Operating Profit Margin (OPM): Despite fluctuations, the OPM percentage improved from 30% in March 2020 to 44% in March 2024, reflecting enhanced operational efficiency and profitability.
- Net Profit: Net profit surged from ₹458 crore in March 2020 to ₹1,388 crore in March 2024, indicating substantial growth and profitability enhancement initiatives undertaken by the company.
- Earnings Per Share (EPS): The EPS exhibited significant growth, climbing from ₹25.31 in March 2020 to ₹77.51 in March 2024, reflecting improved profitability and enhanced shareholder value.
- Dividend Payout: The dividend payout percentage fluctuated over the years, from 27% in March 2020 to 12% in March 2024, showcasing variations in the company’s dividend distribution policy.
Geojit BNP Paribas has displayed confidence in Natco Pharma, endorsing it with a buy recommendation and establishing a target price of Rs 1116. 00.
FAQS
What is the current valuation of Natco Pharma in the stock market?
Natco Pharma’s current market capitalization is an impressive ₹18,644 Crores.
As of May 29th, 2024, the current share price of Natco Pharma is ₹1,041.
According to our analysis, Natco Pharma could reach a maximum of ₹1,387.61 by the end of 2025.
The share price target for Natco Pharma in 2030 is projected to range between ₹2,302.75 and ₹3,578.03.
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Conclusion
Natco Pharma’s Q4 results for FY24 not only demonstrate impressive financial figures but also reflect the company’s commitment to delivering value across its operations. The significant increase in net profit, with Q4 FY24 witnessing a remarkable surge of 40.1% year-on-year to reach ₹386.3 crore, highlights Natco’s ability to generate sustainable profitability. This growth extends to the full fiscal year, where the net profit surged by an impressive 94.1% to ₹1,388.3 crore, underscoring the company’s strong financial performance. Similarly, the revenue for Q4 FY24 stood at ₹1,068.3 crore, marking a robust 19% year-on-year growth, while the revenue for the entire FY24 reached ₹4,126.9 crore, indicating a substantial 46.8% increase. These figures not only reflect Natco Pharma’s ability to capture market opportunities but also its effective management of operational efficiencies and innovation-driven strategies. Furthermore, the notable improvement in EBITDA, with Q4 FY24 witnessing a 46.6% year-on-year rise to ₹497.3 crore, accompanied by an enhanced EBITDA margin of 46.6%, further emphasizes the company’s financial resilience and strategic prowess. Overall, Natco Pharma’s Q4 results affirm its position as a leading player in the pharmaceutical industry, poised for sustained growth and value creation in the years ahead.
What did we learn?
- 1 Shareholding Patterns
- 2 Natco Pharma Reports Strong Q4 Results: 40% Jump in Net Profit, Revenue Surges 19%
- 3 How to purchase Natco Pharma Limited’s shares?
- 4 Natco Pharma Limited’s Share Price Prediction: 2024, 2025 to 2030
- 5 Financial Condition of Natco Pharma: Last 5 years
- 6 Geojit BNP Paribas on Natco Pharma’s share price Target
- 7 FAQS
- 8 Conclusion
