Natco Pharma Limited, established in Hyderabad in 1981 with an initial investment of INR 3.3 million, has undergone a remarkable transformation over the decades. From its humble beginnings as a single-unit operation with just 20 employees, Natco has grown into a significant force in the pharmaceutical industry. This growth is exemplified by the company’s expansion to eight manufacturing facilities spread across India, each equipped with state-of-the-art research laboratories and cutting-edge capabilities in new drug development.
Today, Natco employs around 4,500 people and continues to be a major contributor to the pharmaceutical sector in India. The company is consistently ranked among the fastest-growing pharmaceutical companies in the country, a testament to its dynamic and robust business model. Natco’s reputation for innovation in pharmaceutical research and development is well-established, reflecting its commitment to discovering and advancing new healthcare solutions. This dedication to innovation and excellence not only enhances Natco’s competitive edge in the global market but also ensures that it remains at the forefront of pharmaceutical advancements. As a result, Natco continues to make significant strides in improving patient outcomes and addressing unmet medical needs worldwide.
Shareholding Patterns
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | |
| Promoters + | 48.84% | 49.76% | 49.71% | 49.71% | 49.71% |
| FIIs + | 11.91% | 11.03% | 12.82% | 13.72% | 16.14% |
| DIIs + | 15.38% | 15.15% | 14.01% | 11.26% | 9.69% |
| Public + | 23.87% | 24.08% | 23.48% | 25.32% | 24.46% |
| No. of Shareholders | 1,53,663 | 1,55,181 | 1,63,753 | 2,07,571 | 2,28,467 |
From March 2023 to March 2024, Natco Pharma Limited’s shareholding patterns exhibited significant changes among various investor groups. Promoters increased their stake from 48.84% in March 2023 to 49.76% by June 2023, maintaining a steady 49.71% thereafter, indicating consistent confidence. Foreign Institutional Investors (FIIs) notably boosted their holdings from 11.91% to 16.14%, highlighting rising foreign interest. In contrast, Domestic Institutional Investors (DIIs) reduced their stake from 15.38% to 9.69%, suggesting a strategic reallocation. Public shareholding showed minor fluctuations, ranging from 23.87% to 24.46%. The total number of shareholders jumped from 153,663 to 228,467, reflecting heightened investor interest and confidence in Natco Pharma.
Natco Pharma Q4 FY24 Results Highlights
- Net Profit:
- Q4 FY24: ₹386.3 crore, a 40.1% YoY increase from ₹275.8 crore in Q4 FY23.
- Full FY24: ₹1,388.3 crore, a notable 94.1% rise from ₹715.3 crore in FY23.
- Revenue:
- Q4 FY24: ₹1,068.3 crore, a robust 19% YoY growth from ₹898 crore in Q4 FY23.
- Full FY24: ₹4,126.9 crore, indicating a substantial 46.8% increase from ₹2,811.7 crore in FY23.
- EBITDA:
- Q4 FY24: ₹497.3 crore, a 46.6% YoY increase from ₹339.2 crore in Q4 FY23.
- Q4 FY24 EBITDA margin: 46.6%, a significant improvement from 37.8% in Q4 FY23.
- One-time Charges:
- One-time expense of approximately ₹90 crore in the domestic business segment.
- Unexpected stock returns of ₹25 crore in the Crop Health Sciences division due to a poor crop season.
- Provisions on assets totaled around ₹30 crore.
How to purchase Natco Pharma Limited’s shares?
Below are the trading platforms that you can use to purchase Natco Pharma Limited’s shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
Natco Pharma Limited’s Share Price Prediction: 2024, 2025 to 2030
Natco Pharma Share Price Target 2024
| When | Maximum Price | Minimum Price |
| June 2024 | 1,063.30 | 924.61 |
| July 2024 | 1,052.67 | 915.37 |
| August 2024 | 1,094.78 | 951.98 |
| September 2024 | 1,138.57 | 990.06 |
| October 2024 | 1,116.24 | 970.65 |
| November 2024 | 1,160.89 | 1,009.47 |
| December 2024 | 1,172.50 | 1,019.57 |
Natco Pharma Share Price Target 2025
| When | Maximum Price | Minimum Price |
| January 2025 | 1,184.23 | 910.94 |
| February 2025 | 1,196.19 | 920.15 |
| March 2025 | 1,221.31 | 939.47 |
| April 2025 | 1,209.22 | 930.17 |
| May 2025 | 1,174.00 | 903.08 |
| June 2025 | 1,226.83 | 943.71 |
| July 2025 | 1,202.77 | 925.21 |
| August 2025 | 1,239.97 | 953.82 |
| September 2025 | 1,254.85 | 965.27 |
| October 2025 | 1,287.48 | 990.37 |
| November 2025 | 1,319.66 | 1,015.13 |
| December 2025 | 1,379.05 | 1,060.81 |
Natco Pharma Share Price Target 2026
| When | Maximum Price | Minimum Price |
| January 2026 | 1,420.42 | 1,092.63 |
| February 2026 | 1,384.91 | 1,065.32 |
| March 2026 | 1,412.61 | 1,086.62 |
| April 2026 | 1,441.44 | 1,108.80 |
| May 2026 | 1,427.16 | 1,097.82 |
| June 2026 | 1,462.84 | 1,125.26 |
| July 2026 | 1,434.16 | 1,103.20 |
| August 2026 | 1,478.52 | 1,137.32 |
| September 2026 | 1,508.09 | 1,160.07 |
| October 2026 | 1,547.30 | 1,190.23 |
| November 2026 | 1,585.98 | 1,219.98 |
| December 2026 | 1,625.63 | 1,250.48 |
Natco Pharma Share Price Target 2027
| When | Maximum Price | Minimum Price |
| January 2027 | 1,641.89 | 1,262.99 |
| February 2027 | 1,683.98 | 1,295.37 |
| March 2027 | 1,749.66 | 1,345.89 |
| April 2027 | 1,715.35 | 1,319.50 |
| May 2027 | 1,665.39 | 1,281.07 |
| June 2027 | 1,740.33 | 1,338.72 |
| July 2027 | 1,706.21 | 1,312.47 |
| August 2027 | 1,758.98 | 1,353.06 |
| September 2027 | 1,820.54 | 1,400.42 |
| October 2027 | 1,867.88 | 1,436.83 |
| November 2027 | 1,914.57 | 1,472.75 |
| December 2027 | 1,962.44 | 1,509.57 |
Natco Pharma Share Price Target 2028
| When | Maximum Price | Minimum Price |
| January 2028 | 2,001.69 | 1,539.76 |
| February 2028 | 2,053.01 | 1,579.24 |
| March 2028 | 2,133.08 | 1,640.83 |
| April 2028 | 2,091.26 | 1,608.66 |
| May 2028 | 2,030.34 | 1,561.80 |
| June 2028 | 2,121.71 | 1,632.08 |
| July 2028 | 2,080.11 | 1,600.08 |
| August 2028 | 2,144.44 | 1,649.57 |
| September 2028 | 2,219.50 | 1,707.31 |
| October 2028 | 2,277.20 | 1,751.70 |
| November 2028 | 2,334.13 | 1,795.49 |
| December 2028 | 2,392.49 | 1,840.37 |
Natco Pharma Share Price Target 2029
| When | Maximum Price | Minimum Price |
| January 2029 | 2,440.34 | 1,877.18 |
| February 2029 | 2,502.91 | 1,925.32 |
| March 2029 | 2,600.52 | 2,000.40 |
| April 2029 | 2,549.53 | 1,961.18 |
| May 2029 | 2,475.27 | 1,904.06 |
| June 2029 | 2,586.66 | 1,989.74 |
| July 2029 | 2,535.94 | 1,950.73 |
| August 2029 | 2,614.37 | 2,011.06 |
| September 2029 | 2,705.88 | 2,081.44 |
| October 2029 | 2,776.23 | 2,135.56 |
| November 2029 | 2,845.64 | 2,188.95 |
| December 2029 | 2,916.78 | 2,243.67 |
Natco Pharma Share Price Target 2030
| When | Maximum Price | Minimum Price |
| January 2030 | 2,975.11 | 2,288.55 |
| February 2030 | 3,051.40 | 2,347.23 |
| March 2030 | 3,170.40 | 2,438.77 |
| April 2030 | 3,108.24 | 2,390.95 |
| May 2030 | 3,017.71 | 2,321.31 |
| June 2030 | 3,153.50 | 2,425.77 |
| July 2030 | 3,091.67 | 2,378.21 |
| August 2030 | 3,187.29 | 2,451.76 |
| September 2030 | 3,298.84 | 2,537.57 |
| October 2030 | 3,384.61 | 2,603.55 |
| November 2030 | 3,469.23 | 2,668.64 |
| December 2030 | 3,555.96 | 2,735.35 |
Financial Condition of Natco Pharma: Last 5 years
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
| Sales + | 1,915 | 2,052 | 1,945 | 2,707 | 3,999 |
| Expenses + | 1,332 | 1,446 | 1,681 | 1,772 | 2,247 |
| Operating Profit | 583 | 606 | 264 | 936 | 1,751 |
| OPM % | 30% | 30% | 14% | 35% | 44% |
| Other Income + | 107 | 104 | 99 | 105 | 128 |
| Interest | 22 | 13 | 18 | 14 | 19 |
| Depreciation | 100 | 117 | 143 | 164 | 187 |
| Profit before tax | 569 | 580 | 202 | 862 | 1,674 |
| Tax % | 19% | 24% | 16% | 17% | 17% |
| Net Profit + | 458 | 442 | 170 | 715 | 1,388 |
| EPS in Rs | 25.31 | 24.18 | 9.31 | 39.18 | 77.51 |
| Dividend Payout % | 27% | 22% | 48% | 14% | 12% |
Natco Pharma experienced notable growth and fluctuations in various financial metrics from March 2020 to March 2024. Sales surged impressively from ₹1,915 crore to ₹3,999 crore over the period, indicating robust revenue expansion. Despite significant fluctuations, the operating profit showcased volatility, starting at ₹583 crore in March 2020, dipping to ₹264 crore in March 2022, and rebounding to ₹1,751 crore in March 2024, reflecting varying operational performance. However, the operating profit margin (OPM) percentage improved from 30% to 44% during the same period, signaling enhanced operational efficiency. Net profit witnessed a substantial surge from ₹458 crore to ₹1,388 crore, demonstrating remarkable growth and profitability enhancement efforts. Similarly, the earnings per share (EPS) climbed from ₹25.31 to ₹77.51, indicating improved profitability and enhanced shareholder value. Despite fluctuations, the dividend payout percentage ranged from 27% to 12%, reflecting variations in the company’s dividend distribution strategy.
Geojit BNP Paribas on Natco Pharma’s share price Target
Geojit BNP Paribas has expressed confidence in Natco Pharma, issuing a buy recommendation and setting a target price of Rs 1116. 00.
FAQS
What is the current valuation of Natco Pharma in the stock market?
Natco Pharma’s current market capitalization is an impressive ₹18,644 Crores.
What is the current share price of Natco Pharma?
As of May 29th, 2024, the current share price of Natco Pharma is ₹1,041.
What is the share target price for Natco Pharma by 2025?
According to our analysis, Natco Pharma could reach a maximum of ₹1,379.05 by the end of 2025.
What is Natco Pharma share price target for 2030?
The share price target for Natco Pharma in 2030 is projected to range between ₹2,288.55 and ₹3,555.96.
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Conclusion
Natco Pharma’s Q4 FY24 results demonstrate impressive financial growth, with net profit rising by 40.1% year-on-year to ₹386.3 crore and annual revenue increasing by 46.8% to ₹4,126.9 crore. These figures reflect Natco’s ability to capitalize on market opportunities while maintaining operational efficiency. With a notable improvement in EBITDA and an enhanced EBITDA margin of 46.6%, Natco Pharma is poised for sustained success in the pharmaceutical industry.
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