NATCO Pharma Limited, on 8th March, got a nod from its Board for conducting a buyback transaction.
The buyback will be involving an amount of up to 30, 00, 000 (Thirty Lakhs) fully paid-up equity shares of the face value of Rs. 2 each at a price not exceeding Rs. 700 per Equity Share payable in cash for an aggregate amount not exceeding 210 crores via the Open Market route. The agreed-upon buyback price is around 23 higher as compared to the current stock price levels.
The stock remained flat today with its opening price being Rs 570 and the current levels are around Rs 567. The stock has gained and provided around 7 percent to its stakeholders in a span of 1 month. Going further ahead with a horizon of 6 months, the stock provided negative returns to its stakeholders with a 5.9 percent downfall.
The Pharma stock is a vertically integrated, research and development-focused pharmaceutical company engaged in developing, manufacturing, and marketing complex products for niche therapeutic areas.
The company has established its presence in three business segments which are finished dosage formulations (“FDF”), active pharmaceutical ingredients (“APIs”), and Contract Manufacturing Business. The Company’s focus is primarily on niche therapeutic areas and building complex products.
It is also engaged in contract manufacturing business whereby the company undertakes selected contracts with pharmaceutical companies to manufacture and supply pharmaceutical products.
Digging into the financials, we can observe the positive movement in the revenues and net profits of the company. Revenues were Rs 432 crores in Q2 which going forward to another quarter increased to Rs 493 crores in Q3. Net profits shifted from Rs 57 crores in Q2 to Rs 62 crores in Q3.
FII’s have marginally increased their stake from 11.67 percent holdings during Q2 v/s 11.72 percent holdings in Q3. While the promoter’s holding stood at 48.82 percent with zero shares pledged.
Written by Amit Madnani