Overall Fundamental outlook

Business Operations:

Sector: Healthcare
Industry: Drug Manufacturers - Specialty & Generic

NATCO Pharma Limited, a pharmaceutical company, engages in the developing, manufacturing, and marketing of finished dosage formulations, active pharmaceutical ingredients (APIs), and intermediates in India, the United States, and internationally. It offers formulations in various therapeutic areas, including cancers of blood, liver, kidney, lung, brain, breast, and ovary; and APIs in various categories, such as oncology, central nervous system, pain management, and cardiovascular care. The company offers orthopedic products comprising bisphosphonates, which are oral and injectable drugs; and gastroenterology products consisting of novel drugs for chronic hepatitis-B and hepatitis-C, as well as contract manufacturing services. In addition, it provides cardiology and diabetology products for the treatment of hypertension, stable angina, and CHF. Further, the company offers agro chemicals and biological pest management solutions for management of insects, diseases, and weeds across a range of crops. NATCO Pharma Limited was incorporated in 1981 and is headquartered in Hyderabad, India.

Revenue projections:

Revenue projections for NATCOPHARM
Revenue projections for NATCOPHARM

NATCOPHARM's revenue is forecasted to dip below last year's figures, raising concerns for investors who are typically wary of declining financial performance. Such drops can directly affect the company's bottom line, potentially leading to a decrease in overall profitability, making investors more cautious in their decisions.

Financial Ratios:

currentRatio 5.586000
forwardPE 24.898518
debtToEquity 3.670000
earningsGrowth 0.053000
revenueGrowth 0.140000
grossMargins 0.844270
operatingMargins 0.368390
trailingEps 105.290000
forwardEps 41.270000

NATCOPHARM's current ratio being 5.586 suggests that it has more than enough liquidity to cover short-term debt obligations. The company's cash reserves and current assets are sufficient to meet immediate liabilities, signaling solid financial health and minimal risk.
NATCO Pharma Limited's Forward PE is in a reasonable range, indicating the stock is priced well relative to its earnings. The stock isn't overpriced, which leaves room for future growth, making it an attractive option for investors seeking value and long-term gains.
NATCOPHARM's positive gross and operating margins indicate strong financial performance. These margins show that the company is profitable and efficient in its operations, with effective cost control contributing to its overall financial success.
NATCOPHARM's forward EPS being lower than its trailing EPS suggests that the company's earnings may decline in the current year. This could indicate financial challenges ahead for the company.

Price projections:

Price projections for NATCOPHARM
Price projections for NATCOPHARM

Price projections for NATCOPHARM have been revised upward over time, signaling increasing optimism about the company's future. This steady increase reflects a positive outlook for NATCOPHARM's growth and market performance.

Insider Transactions:

Insider Transactions for NATCOPHARM
Insider Transactions for NATCOPHARM


14 NATCOPHARM transactions were recorded, when the market price was 1427.3821411132812.2 separate purchases of NATCO Pharma Limited stock were made, while market price was at 851.625 per share.An increase in buying activity relative to selling at NATCOPHARM's current price might suggest a favorable sentiment among investors. This trend could be interpreted as a sign that the stock has a positive outlook in the near term.

Recommendation changes over time:

Recommendations trend for NATCOPHARM
Recommendations trend for NATCOPHARM


With analysts leaning toward a sell bias for NATCO Pharma Limited, investors should be cautious and make decisions based on a wider set of market indicators. This approach will help balance short-term concerns with longer-term market trends, providing a more holistic view of the stock.