Natco Pharma Q2 Results Review - Strong Growth On Low Base; Weak Q3 Expected: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Natco Pharma Ltd. Q2 FY24 revenue was below non-binding indicative estimates; however, Ebitda margins were in line.Revenue grew by ~139% YoY, on account of a low base in the export business and ramp up in crop protection business led by calculated total peripheral resistance. Domestic Formulations grew by ~10% YoY, while export formulations grew 180% YoY aided by Revlimid sales. Ebitda margins improved to 44.4%, mainly due to Revlimid contribution.We remain cautious about Natco Pharma as growth is highly contingent on the performance of Revlimid and CTPR. Excluding these two, we do not see any near-to-medium term visibility in both the U.S. as well as domestic market.Also, restructuring of the business to diversify into multiple geographies and segments as opposed to being a focused U.S. centric player is likely to weigh on base business margins in the short to medium term. We maintain 'Accumulate' on Natco Pharma with a revised SOTP-based target price of Rs 861, valuing it at 24 times price to earnings on September FY25E base earning per share of Rs 28.5 and net present value of Rs 176 for Revlimid..Click on the attachment to read the full report:.Infra-Road Q2 Results Review - All Eyes On New Order Inflows: Axis Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Natco Pharma Q2 Results Review - Strong Growth On Low Base; Weak Q3 Expected: Nirmal Bang

Natco Pharma’s Q2 FY24 revenue was below non-binding indicative estimates; however, Ebitda margins were in line.

Choose a plan