Buy Natco Pharma, target price Rs 952: HDFC Securities

HDFC Securities has buy call on Natco Pharma with a target price of Rs 952. The current market price of Natco Pharma Ltd. is Rs 865.2.

Time period given by analyst is 3 months when Natco Pharma Ltd. price can reach defined target.

Natco Pharma Ltd., incorporated in the year 1981, is a Mid Cap company (having a market cap of Rs 15983.73 Crore) operating in Pharmaceuticals sector.


Natco Pharma Ltd. key Products/Revenue Segments include Pharmaceuticals, Export Incentives, Sale of services, Job Work, Scrap and Other Operating Revenue for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 415.20 Crore, down -2.83 % from last quarter Total Income of Rs 427.30 Crore and down -49.85 % from last year same quarter Total Income of Rs 827.90 Crore. Company reported net profit after tax of Rs 65.10 Crore in latest quarter.

Investment Rationale
A sustainable upmove above Rs 880 levels could be considered as an upside breakout of a small range movement of the last few weeks and that is likely to open a decisive upside for the stock price ahead.


Promoter/FII Holdings
Promoters held 48.87 per cent stake in the company as of 30-Sep-2021, while FIIs owned 20.48 per cent, DIIs 9.82 per cent.