Scripscan:Natco Pharma Ltd
cmp:225
Code:524816
Story:The Hyderabad-based pharmaceutical company is engaged in the manufacture of active pharmaceutical ingredients and formulations with a focus on oncology. The company owns a retail pharmacy store chain in the US and a small distribution business in Brazil. It is also engaged in contract manufacturing. As part of its marketing strategy, Natco has tied up with leading companies such as Mylan, Dr Reddy''s Labs, Actavis, Breckinridge and Lupin.Net sales and net profit have grown at a CAGR of 20.6% and 17.5%, respectively, in the last five fiscals. The company has been paying dividends since the last five years at an average payout of 10.5%. It plans to spend nearly 5% of its revenues on R&D. The company recently raised Rs 67.5 crore through a qualified institutional placement to fund its expansion plans and meet its working capital requirements. A couple of private equity players have picked up a small stake in the company. Dilip Shanghvi, the promoter of Sun Pharma, has bought a 3.2% stake.Natco Pharma''s stock which had depreciated by 40% in the last 12 months to November, has gained by 20% after the stake deals. With a market capitalisation of Rs 692 crore, the company is valued at one-and-a-half times its consolidated revenues during the last four trailing quarters. These are fair valuations given that the stock is a long-term play for the investors.
cmp:225
Code:524816
Story:The Hyderabad-based pharmaceutical company is engaged in the manufacture of active pharmaceutical ingredients and formulations with a focus on oncology. The company owns a retail pharmacy store chain in the US and a small distribution business in Brazil. It is also engaged in contract manufacturing. As part of its marketing strategy, Natco has tied up with leading companies such as Mylan, Dr Reddy''s Labs, Actavis, Breckinridge and Lupin.Net sales and net profit have grown at a CAGR of 20.6% and 17.5%, respectively, in the last five fiscals. The company has been paying dividends since the last five years at an average payout of 10.5%. It plans to spend nearly 5% of its revenues on R&D. The company recently raised Rs 67.5 crore through a qualified institutional placement to fund its expansion plans and meet its working capital requirements. A couple of private equity players have picked up a small stake in the company. Dilip Shanghvi, the promoter of Sun Pharma, has bought a 3.2% stake.Natco Pharma''s stock which had depreciated by 40% in the last 12 months to November, has gained by 20% after the stake deals. With a market capitalisation of Rs 692 crore, the company is valued at one-and-a-half times its consolidated revenues during the last four trailing quarters. These are fair valuations given that the stock is a long-term play for the investors.
