NATCO Pharma Ltd.

NSE: NATCOPHARM · Pharmaceuticals

52W Range₹789 ₹1,227

Snapshot

Unlock NATCO Pharma Ltd.'s vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

NATCO Pharma Limited is a pharmaceutical company that develops, manufactures, and markets finished dosage formulations and active pharmaceutical ingredients (APIs). The company specialises in complex therapeutic areas, particularly oncology, gastroenterology, and cardiology, while providing contract manufacturing services globally.

Business Model

The company generates revenue through the sale of specialised pharmaceutical formulations and APIs across domestic and international markets. It leverages a diversified portfolio of chronic care drugs and contract manufacturing capabilities to maintain its market position.

Growth Outlook

Growth is driven by the expansion of its oncology and chronic disease product portfolios across approximately 40 countries. The company continues to focus on high-barrier-to-entry segments and international market penetration.

Key Risks

  • Regulatory Compliance. The company faces significant risks related to stringent inspections and quality standards imposed by international health authorities like the US FDA.
  • Pricing Pressure. Intense competition in the generic pharmaceutical sector and government-mandated price controls in India may impact profit margins.
  • Litigation Risk. As a manufacturer of complex generic drugs, the company is exposed to potential patent litigation and intellectual property challenges from innovator pharmaceutical firms.
  • Supply Chain Dependency. Reliance on external suppliers for raw materials and APIs could lead to operational disruptions if global supply chains are constrained.

Price

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Key Metrics

REVENUE

₹4,078 Cr

TTM · consolidated

-7.9%YoY

NET PROFIT

₹1,418 Cr

TTM · consolidated

-24.7%YoY

EPS

₹79.20

TTM · consolidated

-24.8%YoY

RETURN ON EQUITY

17.7%

TTM · consolidated

-12.2 ppYoY

RETURN ON CAPITAL EMPLOYED

18.8%

TTM · consolidated

-17.5 ppYoY

P/E

12.2x

Q4 FY26 · consolidated

12.2 vs 31.3x5Y avg

EV/EBITDA

10.3x

Q4 FY26 · consolidated

10.3 vs 18.2x5Y avg

EBITDA MARGIN

42.5%

TTM · consolidated

-15.1 ppYoY

NET PROFIT MARGIN

36.4%

Q4 FY26 · consolidated

+3.1 ppYoY

DEBT TO EQUITY

0.1x

Q4 FY26 · consolidated

+0.04xYoY

Peers · Pharmaceuticals

CompanyMkt Cap (Cr)P/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
NATCO Pharma Ltd.NATCOPHARM
17,05112.2010.27-7.9%42.5%17.7%18.8%-5.4%
Wockhardt Ltd.WOCKPHARMA
18,614143.0242.4612.0%22.6%4.4%7.1%+3.0%
Piramal Pharma Ltd.PPLPHARMA
18,044-70.7724.22-3.1%12.8%-4.0%0.9%-18.6%
Eris Lifesciences Ltd.ERIS
17,75132.7820.298.2%36.0%20.8%14.9%-16.0%
Neuland Laboratories Ltd.NEULANDLAB
15,42766.0939.9837.0%29.9%22.6%27.9%+30.4%
Onesource Specialty Pharma Ltd.ONESOURCE
14,946182.4338.3869.9%2.3%4.5%-16.4%

As of Q4 FY26

Financials