Natco Pharma Q4 Results Review: Dolat Capital Maintains 'Sell', Sees 11% Downside

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Dolat Capital Report

Natco Pharma Ltd.'s Q4 FY25 results were below our estimates, on account of a lower-than-expected growth in export formulation business, API and Crop Health Sciences business.

The company expects a 20% drop in FY26 sales and a 30% drop in profit mainly due to headwinds in core US portfolio and major erosion in gRevlimid from H2 FY26.

We downgrade our FY26E/FY27E EPS estimates by 38.2%/15.5%, assuming lower gRevlimid sales and Ebitda and core margin ex Revlimid as well.

Maintain ‘Sell’ rating with a revised target price of Rs 772 at 28x FY27E P/E.

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