This Pharma stock, which deals in the business of an integrated, R&D-focused pharmaceutical company that is engaged in manufacturing, developing, and marketing complex products for niche therapeutic areas, plans to reach Rs. 2,000 Cr PAT in FY25 & FY26 despite uncertainties.
Share Price Movement
In Friday’s trading session, Natco Pharma‘s share price was down by 3 percent and closed at Rs. 797.70 per share from the previous close of Rs. 822.40 per share.
In the past year, the stock has given around 12.85 percent negative returns, and compared to the Nifty Index, Natco Pharma has underperformed.
Future Plans
In the coming years, Natco Pharma plans to strengthen its core business and expand globally. They aim to achieve Rs. 1,800 to Rs. 2,000 crore PAT for FY25, maintaining similar profitability in FY26 due to anticipation of price erosion in key products like Revlimid.
The company expects to capture one-third of the Revlimid market allocation in FY26, contributing significantly to revenues. The Crop Health Sciences division targets Rs. 130 to Rs. 140 crore revenue for FY26, with breakeven expected.
They plan to scale up the Emerging Market and Canada business while targeting 7 to 8 key oncology product launches. Additionally, The launch of Semaglutide injectable in India by March 2026, is subject to regulatory approvals.
Further, Natco is actively pursuing acquisitions in ROW markets and the US front-end, while intending to deploy Rs. 3,000 crore net cash position to fuel its growth. Their R&D spend to remain around 8 to 10 percent of sales.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 37.41 percent decline in revenue, reaching Rs. 475 crore compared to Rs. 759 crore in Q3FY24. During the same period, net profit declined by 38.02 percent from Rs. 213 crore in Q3FY24 to Rs. 132 crore in Q3FY25.
Business Segments
The company earned 96.81 percent of its operational revenue from Pharmaceuticals and the remaining 3.18 percent from Agro Chemicals for the December 2024 quarter.
Out of total income, Exporting Formulations contributed 43.89 percent, followed by 28.79 percent from Other Operating & Non- Operating Income, Domestic Formulations contributed 14.75 percent, Active Pharmaceutical Ingredients (API) 10.22 percent, followed by
Company Profile
Natco Pharma Limited, founded in 1981 and headquartered in Hyderabad, India, is a leading pharmaceutical company that specializes in oncology, complex generics, and APIs. They operate in over 50 countries and focus on affordable healthcare solutions. It also diversifies into agrochemicals and renewable energy.
They have around 28 products in the pipeline focused on Cancer, Hypertension, Weight Loss, Bladder Cancer, Breast Cancer, and others as of December 31st, 2024 in the USA.
Written by – Santhosh S
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