Last Updated:
Natco Pharma Stocks Price Today: NATCO Pharma’s share price dropped another 10% on Friday; Know what analysts suggest
Natco Pharma shares fall nearly 30% in two days
Natco Pharma Stock Falls: NATCO Pharma’s share price dropped another 10% on Friday following weak earnings for the third quarter of the current fiscal year. The stock had already fallen 20% on Thursday.
At around 10:40 AM, the stock was trading at Rs 875.50 per share on the NSE, down 10.21%, after the pharma company reported a 37.75% decline in consolidated net profit for the December quarter. On Thursday, the stock had plunged 19.99% to close at Rs 973.40 on the BSE, hitting the lower circuit limit of Rs 973.35. On the NSE, it also hit the lower circuit limit, falling 19.99% to Rs 975.05.
The company’s market value dropped nearly Rs 6,000 crore in just two days, bringing its valuation to Rs 15,722.26 crore on the NSE by February 14. In terms of traded volume, 44.90 lakh shares were exchanged on the NSE during the day.
Analysts at domestic brokerage Dolat Capital stated, “Natco is facing challenges in base business growth excluding Revlimid, as the ramp-up across segments is not meeting expectations, leading to a significant erosion of core margins excluding Revlimid.”
They added, “FY26 sales growth will largely depend on Revlimid price erosion. The company anticipates a significant drop in FY27 earnings due to increased competition in Revlimid sales after the patent expiry.”
On February 12, NATCO Pharma reported a 37.75% decline in consolidated net profit to Rs 132.4 crore for the December quarter, mainly due to a drop in formulation exports. The company had posted a net profit of Rs 212.7 crore in the same quarter the previous year, according to a regulatory filing.
“Natco Pharma’s earnings were significantly impacted by a decline in its export formulation business, particularly following the loss of Revlimid, its major revenue driver. Domestic formulation sales also fell, affecting the overall performance. However, the company remains a strong industry player, benefiting from its vertically integrated structure and focus on niche therapeutic areas and complex products,” said Prathamesh Masdekar, Research Analyst at StoxBox.
“Looking ahead, the company has several key product launches planned over the next five years, which are expected to unlock substantial growth opportunities and significantly improve revenue, profitability, and return ratios starting from FY26 onwards,” Masdekar added.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
