Natco Pharma Shares See Worst Fall In Nearly Five Years As Q3 Profit Slumps
Natco Pharma's share price fell as much as 18.6% to Rs 992.5 apiece in early trade, the biggest fall since March 23, 2020.
Shares of Natco Pharma Ltd. tumbled over 18% — biggest intraday loss since March 2020 — on Thursday as the third-quarter profit of the company slipped 37%, missing analysts' estimates.
The pharma firm posted a consolidated net profit of Rs 133 crore for the quarter ended Dec. 31, 2024, as compared to Rs 212.70 crore in the same period last year, according to an exchange filing on Wednesday. This compares to the consensus estimate of Rs 247 crore of analysts tracked by Bloomberg.
The company's revenue dipped to Rs 474.80 crore, representing a 37.4% fall against Rs 758.60 crore for the year-ago period. This compares to the consensus estimate of Rs 877 crore of analysts tracked by Bloomberg.
Margin narrowed drastically to 8.2% for the quarter under review in contrast to 35.3% for the same period of the previous fiscal.
Natco Pharma declared its third interim dividend of Rs 1.50 per share of Rs 2 each for the financial year 2024-25. The record date for the dividend is set as Feb. 18 and the payment for the same to the eligible shareholders will be made on Feb. 28.
Natco Pharma's share price fell as much as 18.6% to Rs 992.5 apiece in early trade, the biggest fall since March 23, 2020. It was trading 16.6% lower at Rs 1,218 apiece as of 9:40 a.m., as compared to a 0.23% advance in the NSE Nifty 50 index.
The stock advanced 17.74% in 12 months. Total traded volume so far in the day stood at 0.45 times its 30-day average. The relative strength index was at 52.94.
Six out of the twelve analysts tracking the company maintain a 'buy' rating, two have hold, and four suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 43%.
