Natco Pharma Q4 Results Review - Beat On Earnings: Dolat Capital

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Natco Pharma Ltd.’s Q4 FY24 results were above our estimates on account of higher-than expected growth in export formulation. However, domestic and Crop Health Sciences were below estimate due to a one-time charge of Rs 900 million. Charge of Rs 350 million on domestic business was on return of stock from super stockist due to change in distribution model. Stock returns in CHS were worth Rs 250 million due to poor crop season and Rs 300 million provision for certain non-utilized assets.Management guided topline growth of 15-20% for FY25. Crop Health sciences is expected to be a Rs 3 billion business in the next three years. The company is looking for acquisitions in rest of world markets to expand its business. We upgrade our FY25E/FY26E EPS estimates by 4.8%/5.1% assuming higher than expected export formulation sales. We like Natco Pharma’s focus on niche drug filings and expect strong cash flows backed by low competitive launches. We believe cash flows will be utilized towards inorganic opportunities, dividend payouts and research and development bio-study activities. We maintain our ‘Accumulate’ rating with revised target price of Rs 1,144 (earlier Rs 1,004) on SOTP basis. .Keys risks: Higher competition in niche products, higher price erosion in the U.S. and GMP compliance issues..Click on the attachment to read the full report:.LIC Q4 Results Review - VNB Margin Contracts 220 Basis Points YoY: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Natco Pharma Q4 Results Review - Beat On Earnings: Dolat Capital

Complex and niche products to drive export growth

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