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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
Natco Pharma Limited is an India-based vertically integrated pharmaceutical company with a focus on research and development. It develops, manufactures and distributes generic and branded pharmaceuticals, specialty pharmaceuticals, active pharmaceutical ingredients and crop…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A high-quality, fast-growing business, reasonably priced.
Natco Pharma is scored on the pharma / healthcare framework. It keeps a fat 31.4% of every rupee of sales as net profit. Those profits are backed by real cash — operating cash flow runs 1.29× reported profit. Free cash flow is worth about -2.0% of its market value.
Over the last 3 years revenue compounded at 16%/yr and profit at 24%/yr. Book value itself has compounded 24%/yr — the hallmark of a genuine compounder. Return on equity is a healthy 15.4%. In the latest quarter profit fell 48% versus the prior quarter.
At 10× earnings, the stock sits at the 31st percentile of its own 3.6-year range — the middle of where it has historically traded. Today's price asks for only ~4%/yr growth over a decade — undemanding expectations. The books come through clean — a forensic grade of A, and Altman puts distress risk in the safe zone.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 13.83 | — | — |
| P/B | 1.51 | 4.1 | better |
| EV/EBITDA | 10.98 | 19.33 | better |
| ROE | 15.38 | — | — |
| ROCE | 15.37 | 14.41 | better |
| ROA | 9.16 | 1.64 | better |
| Quick Ratio | 2.47 | 4.8 | worse |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sun Pharmaceutical Industries | 40.6 | 5.0 | 13.8% |
| Divis Laboratories | 93.5 | 16.3 | 15.3% |
| Torrent Pharmaceuticals | 85.9 | 9.8 | 11.4% |
Revenue is on a 2-year growth streak. 16% CAGR over 3 years — steady double-digit compounder. Growth is decelerating — latest year grew slower than the year before.
Profit is on a 2-year growth streak. Profit is growing faster than revenue (24% vs 16%) — margin expansion is at work.
Operating margin has expanded from 31% to 34% — the business is keeping more of each rupee earned. Interest or tax burden is shrinking — more of the operating profit is reaching the bottom line.
ROE at 15% — a respectable return on shareholder capital.
EPS dropped in the latest year despite possible profit changes — dilution or a profit dip could be at play. EPS outpaced profit growth — possible buybacks are concentrating earnings into fewer shares. 26% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
Operating cash flow has been positive every year — the business generates real cash, not just accounting profit. Cash conversion at 1.3× PAT — earnings are well-backed by cash; strong accrual quality. Investing outflows exceed operating cash — the company relies on external funding to finance expansion.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue broadly flat QoQ — stable but not accelerating. Wide quarterly swings (52% spread) — likely seasonality, lumpy orders, or project-based revenue. Run-rate fading — recent quarters 26% below earlier ones.
Profit fell 48% QoQ — one-quarter drops can be noise, but a pattern matters. Quarterly margins are compressing (35% → 15%) — more revenue isn't translating to proportionally more profit.
How today's P/E compares to the stock's own historical range. Dashed line = the 3.6y median.
Promoters at 46.2% — dispersed ownership; institutional flows drive the stock. Promoters reduced 3.2pp over 4 quarters — watch whether this is planned divestment or pledge invocations. FIIs trimmed 2.0pp — foreign money is rotating out. MF holding up 5.3pp — domestic institutional discovery underway.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.