Buy Natco Pharma Ltd., target Rs 602 : Anand Rathi

Anand Rathi has a Buy call on Natco Pharma Ltd. with a target price of Rs 602. The current market price of Natco Pharma Ltd. is Rs 596. Time period given by analyst is year, when Natco Pharma Ltd. price can reach defined target. The company has a good product pipeline in the US, and higher traction in HepC and the oncology portfolio. The stock trades at 29.4x FY17 and 25.4x FY18E EPS. Currency fluctuations, slower execution in domestic formulations and delays in approvals are key risks.