NATCO Pharma Shares Tumble 19% After Q3 Profit Declines 37% YoY

Key Highlights:

• NATCO Pharma’s Q3 net profit dropped 37.75% YoY to ₹132.4 crore.
• Stock plunged 16.06% to an intraday low of ₹1,023 in early trade.
• Formulation exports fell sharply to ₹285.8 crore from ₹605.6 crore YoY.
• API revenue saw an increase to ₹66.6 crore from ₹46.3 crore YoY.
• Board declared a third interim dividend of ₹1.50 per share for FY 2024-25.
• Analyst target price: ₹1,349, indicating an 11% potential upside.

Q3 Financial Performance Overview

NATCO Pharma shares opened significantly lower on Thursday, reacting to the company’s weaker-than-expected Q3 results. The 37.75% YoY decline in net profit to ₹132.4 crore was primarily due to a steep drop in formulation exports.

Total expenses fell to ₹487.4 crore, down from ₹539.3 crore in the same period last year. Despite the decline in exports, the company saw growth in API revenue, which rose to ₹66.6 crore from ₹46.3 crore YoY.

Stock Performance & Analyst Outlook

• Stock Price Movement: On Wednesday, NATCO Pharma closed at ₹1,216.6, down 2% on the BSE.
• 6-Month Trend: The stock has declined 18% in the last six months.
• 2-Year Gain: Despite the recent dip, the stock has surged 131% over the past two years.
• Market Capitalization: The company’s market cap stands at ₹21,791 crore.

What’s Next for NATCO Pharma?

✔ Dividend Declaration: The company’s board has announced a third interim dividend of ₹1.50 per share for FY 2024-25.
✔ Analyst View: As per Trendlyne, the average target price for NATCO Pharma is ₹1,349, reflecting an 11% potential upside.
✔ Consensus Rating: Out of 11 analysts, the majority recommend a ‘Hold’ on the stock.

Conclusion

NATCO Pharma’s sharp drop in Q3 profit has triggered a sell-off, but analysts remain cautiously optimistic about the stock’s long-term potential. Investors should keep an eye on upcoming earnings, formulation export trends, and broader pharmaceutical sector movements before making any investment decisions.

NEWS SOURCE BY :- GOOLE NEWS

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