Natco Pharma Q3 Results Review -Caution On Growth Drivers, Strategic Shifts: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Natco Pharma Ltd.’s Q3 FY24 revenue was below our estimate, but Ebitda margin was in line with estimate. Revenue grew by 54% YoY on the back of a low base in the exports business and ramp-up in the crop protection business (led by CTPR). Domestic Formulations declined by ~2% YoY while export formulations grew by 81.5% YoY, aided by new launches. Ebitda margin improved by 1348 basis points to 35.3%, mainly led by Revlimid contribution, new launches and reduced price pressure in the U.S. We remain cautious about Natco Pharma as growth is highly contingent upon the performance of Revlimid and CTPR. Excluding these two, we do not see any near-to-medium term visibility in either the U.S. market or the Domestic market. Also, business restructuring to diversify into multiple geographies and segments as opposed to being a focused U.S. centric player is likely to weigh on base business margins in the short-to medium term. We maintain 'Accumulate' on Natco Pharma with a revised SOTP-based target price of Rs 956, valuing it at 24 times price-earning on Dec-FY25E base earnings per share of Rs 32.50 and net present value of Rs 176 for Revlimid..Click on the attachment to read the full report:.Natco Pharma Q3 Net Profit Rises Over 3-Fold To Rs 212.7 Crore .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Natco Pharma Q3 Results Review -Caution On Growth Drivers, Strategic Shifts: Nirmal Bang

Total Formulations business grew by 137% YoY to Rs 9 billion on the back of a low base in the export business.

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Natco Pharma Q3 Results Review -Caution On Growth Drivers, Strategic Shifts: Nirmal Bang

Total Formulations business grew by 137% YoY to Rs 9 billion on the back of a low base in the export business.

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