NATCO Pharma Reports Profit Drop: Stock Dives 16% in Early Trading

NATCO Pharma shares drop 16% after profit falls 37.75% to ₹132.4 crore. Analysts suggest a ‘Hold’ with an average target price of ₹1,349.

natco

NATCO Pharma’s stock dropped sharply after the company announced its profit fell by 37.75% to ₹132.4 crore for the last quarter of the year. This was mainly due to a big decrease in sales of their medicines to other countries. The stock fell by 16.06% in early trading, reaching a low of ₹1,023.

Last year, the company made ₹212.7 crore in profit during the same time. Even though their total expenses decreased to ₹487.4 crore from ₹539.3 crore, their export sales were also down. They sold ₹285.8 crore worth of medicines to other countries, compared to ₹605.6 crore last year. In the local market, they sold ₹96.1 crore worth of medicines, which is slightly less than the ₹99.4 crore from last year.

However, there is some good news: NATCO Pharma made ₹66.6 crore from active pharmaceutical ingredients (APIs), which is up from ₹46.3 crore last year. The company’s board declared an interim dividend of ₹1.50 for each equity share for the financial year 2024-25.

According to Niftystat, the average target price for NATCO’s shares is ₹1,349, suggesting a possible 11% rise from their current price. Analysts’ advice for the stock is to ‘Hold’ based on 11 opinions.

Regarding share price performance, NATCO Pharma’s shares closed at ₹1,216.6, down 2% recently, while the Sensex index fell by 0.16%. The stock has dropped 18% in the last six months but is up 131% over the past two years. The company’s market value is ₹21,791 crore.

Comments

Leave a Reply