Natco Pharma - Muted Revenue Growth; Agro-Chem To Aid Earnings: Geojit

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Geojit Research Report

Natch Pharma Ltd. is an India-based vertically integrated and research and development focused enterprise, engaged in developing, manufacturing and marketing finished dosage formulations and active pharmaceutical ingredients and intermediates.

Natco witnessed 67% revenue growth in H1 FY23, owing to robust Revlimid sales.

Ebitda margins expanded 1436 basis points to 37% in H1 FY23 from 23% in H1 FY22 led by strong contribution from export formulations.

Export formulation business registered a 204% growth in H1 FY23 with revenues at Rs 1020 crore.

Brazilian and Canadian subs, backed by strong new launches, have reported robust growth with 40-50% share in profitability.

In the crop health science division, the Chlorantraniliprole associated products which were launched are expected to drive earnings in the near-term.

We remain optimistic on Natco’s future profitability backed by the traction in CTPR and Revlimid sales and recovery in domestic formulation.

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