NATCO Pharma Ltd.
NSE: NATCOPHARMNATCO Pharma Ltd.: A 30-second snapshot
NATCO Pharma trades at Rs 916.65, down 21.78% over the trailing 3 months and 25.28% below its 52-week high, though roughly flat (-1.05%) over the past year. Trailing PE of 11.52 sits well below pharma peers (Cipla 35.09, Sun Pharma 38.61, Dr Reddy's 29.50), even as 5-year revenue and earnings have contracted 39.6% and 34.1% respectively. ROE stands at 16.85% with a 34.78% profit margin, and the two most recent headlines relate to a Delhi High Court patent challenge against Novartis over Ribociclib.
P/E
11.5
Forward P/E
20.0
ROE
+16.9%
Debt / Equity
7.74
Profit Margin
+34.8%
Div. Yield
+0.7%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
57/100
News
2 headlines · 2 positive · 0 negative
Recent context
- ·The two most recent headlines (Aug 5, 2026, Whalesbook) cover Natco Pharma's Delhi High Court challenge against Novartis's Ribociclib patent -- both classified positive sentiment, though the sample is limited to a single source/day.
- ·The trailing 3-month price decline of 21.78% and 25.28% drawdown from the 52-week high are not directly explained by the two available headlines.
- ·Sector peer data places NATCO 1st of 6 on PE and 2nd of 6 on both ROE and quality score within its pharma peer set.
Strengths
- +Profit margin of 34.78% and ROE of 16.85%, with ROE above 15% in 3 of the tracked years and positive free cash flow in 4 of the tracked years.
- +Trailing PE of 11.52 ranks 1st of 6 among sector peers (Cipla 35.09, Dr Reddy's 29.50, Sun Pharma 38.61, Apollo Hospitals 66.22, Max Healthcare 72.44).
- +ROE ranks 2nd of 6 and quality score ranks 2nd of 6 within the sector peer set.
- +1-year price change of -1.05% is roughly flat over the trailing year despite a sharper 3-month drawdown, and RSI of 43.16 sits in neutral territory.
Weaknesses
- −Trailing 5-year revenue contracted 39.6% and 5-year earnings contracted 34.1%, a sustained multi-year decline in core operating metrics.
- −Price trades below both the 50-DMA (Rs 918.98) and 200-DMA (Rs 943.01), is down 21.78% over the trailing 3 months, and sits 25.28% below its 52-week high.
- −Forward PE of 20.01 is roughly 74% above trailing PE of 11.52, implying consensus forward EPS below trailing EPS.
- −Only 2 news headlines were captured this cycle, and no consensus analyst rating value was recorded despite an analyst coverage count of 9.
Open questions
- ?Does the 39.6% five-year revenue contraction reflect a structural shift in NATCO's product mix or pipeline, or a transient patent-cliff/pricing cycle?
- ?How might the outcome of the Ribociclib patent litigation against Novartis affect future product launches or revenue lines?
- ?Does the persistent profitability (34.78% margin, positive FCF in 4 of 5 years) despite declining revenue reflect cost discipline, divestitures, or a narrowing product base?
- ?What factors explain the price trading below both the 50- and 200-day moving averages when the 1-year price change is roughly flat at -1.05%?
Peer comparison: Pharma
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| NATCOPHARM | NATCO Pharma Ltd.You're viewing | 11.5 | +16.9% | 44 |
| Industry avg | across 5 peers | 48.4 | +14.9% | 34 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 38.6 | — | 57 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 66.2 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 72.4 | +14.3% | 37 |
| CIPLA | Cipla Ltd. | 35.1 | — | 28 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 29.5 | +8.8% | 4 |
Technical state
Current price
₹916.65
SMA 50
₹918.98
SMA 200
₹943.01
RSI (14)
43.2 (neutral)
From 52w high
-25.3%
1Y return
-1.1%
3M return
-21.8%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highTrailing 5-year revenue contracted 39.6% and 5-year earnings contracted 34.1% -- a sustained, multi-year decline in core operating metrics rather than a single-year dip.
- mediumPrice (Rs 916.65) trades below both the 50-DMA (Rs 918.98) and 200-DMA (Rs 943.01); the stock is 25.28% below its 52-week high and down 21.78% over the trailing 3 months, while RSI of 43.16 sits in neutral territory.
- mediumForward PE (20.01) sits roughly 74% above trailing PE (11.52), implying consensus forward EPS below trailing EPS -- directionally consistent with the 5-year revenue and earnings contraction noted above.
- lowOnly 2 news headlines were captured this cycle (both from the same source and day), and no consensus analyst rating value was recorded despite an analyst coverage count of 9.
Cross-section contradictions
- Profit margin of 34.78% and ROE of 16.85% (ROE above 15% in 3 of the tracked years, free cash flow positive in 4 of the tracked years) have persisted even as trailing 5-year revenue contracted 39.6% and 5-year earnings contracted 34.1% -- profitability quality and top-line/bottom-line trend point in different directions over the same window.
- Both captured news headlines carry positive sentiment, yet the stock is down 21.78% over the trailing 3 months and 25.28% below its 52-week high -- though the news sample is thin (2 headlines, single source/day) and unlikely to fully explain the price move.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 11 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 9 Aug 2026 · rotates through NIFTY 500 every ~5 days