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Natco Pharma

Discussion in 'Fundamental Analysis' started by chaitanya_mella, Aug 13, 2018.

  1. chaitanya_mella

    chaitanya_mella Contributor

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    Natco pharma manufactures drugs for cancer and hepatitis c. The market for these is ever growing and looks like it has huge potential. Recent quarter took a hit due to fall in market size of hepatitis c. The company has setup R&D for cardiology and diabetes. And looking to increase revenues from India and Rest of the world (other than USA)

    As per their 2016-2017 annual report their EBIDTA has grown at CAGR of roughly 40 percent for 5 years. Average ROE over last 10 years is just over 20. Operating profit margin has been around 25% average over the decade.

    Any thoughts on current price being good to enter?


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    chaitanya_mella, Aug 13, 2018
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  2. shabbir

    shabbir Administrator Staff Member

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    Looks quite impressive.
     
    shabbir, Aug 14, 2018
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  3. chaitanya_mella

    chaitanya_mella Contributor

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    They target difficult medicines like cancer drugs and Hep C drugs giving them an edge. And they drive business through managing partners who take care of litigation if needed. Probably provides some insulation from external shocks.
     
    chaitanya_mella, Aug 14, 2018
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  4. rahul_majumdar

    rahul_majumdar Member

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    Good balanced company with the appetite to think big. Can be considered as portfolio stock for long term capital appreciation.
     
    rahul_majumdar, Aug 14, 2018
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  5. avrajq

    avrajq Member

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    The stock has corrected and is now below its 50 and 200 SMA. However, the correction from around 850 to current level (nearing 750) has been on relatively lower volumes, suggesting that the bottom may be near - say - around 700 or so. There's no indication now that the correction is over. One may wait and watch for signs of recovery around that level.
     
    avrajq, Aug 14, 2018
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  6. bhat64

    bhat64 Apprentice

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    Natco is a good niche in Pharma sector with exceptional return ratios. I would start chewing more of it from now as it begins stabilise at current price. Natco is the only Pharma company apart from Jenburkt whose chart is different than rest of the Pharma stocks. It didn’t go into major downtrend


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    bhat64, Aug 26, 2018
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  7. nirajshah

    nirajshah Champion

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    nirajshah, Aug 29, 2018
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