Buy Natco Pharma, target Rs 908: Geojit
Buy Natco Pharma Ltd. at a price target of Rs 908.
By ETMarkets.com |
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Brokerage firm Geojit has a buy call on Natco Pharma with a target price of Rs 908.
The current market price of Natco Pharma is Rs 780.40.
Time period given by the brokerage is one year when Natco Pharma price can reach the defined target.
"At current CMP of 780, Natco is trading at a P/E of 20x and 16x for FY19E and FY20E EPS respectivley. On back of better performance from molecules like Tamiflu, Copaxone, Doxorubicin and Lanthanum in US and better realisations from domestic and emerging markets, we believe Natco to witness a healthy growth in coming years. We expect international/domestic niche FD segment to grow by 12 per cent & 14 per cent respectively for FY 19/20 and factor an earnings outlook of 13 per cent CAGR over FY18-20E. Hence, we value Natco at 19x on FY20E EPS and arrive at a target price of Rs 908 and recommend ‘Buy’ rating," a report from Geojit said.
The current market price of Natco Pharma is Rs 780.40.
Time period given by the brokerage is one year when Natco Pharma price can reach the defined target.
"At current CMP of 780, Natco is trading at a P/E of 20x and 16x for FY19E and FY20E EPS respectivley. On back of better performance from molecules like Tamiflu, Copaxone, Doxorubicin and Lanthanum in US and better realisations from domestic and emerging markets, we believe Natco to witness a healthy growth in coming years. We expect international/domestic niche FD segment to grow by 12 per cent & 14 per cent respectively for FY 19/20 and factor an earnings outlook of 13 per cent CAGR over FY18-20E. Hence, we value Natco at 19x on FY20E EPS and arrive at a target price of Rs 908 and recommend ‘Buy’ rating," a report from Geojit said.
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