Shares in Natco Pharma has soared 18% to Rs 1,211 extending its past two week rally on BSE, on back of heavy volumes.
The stock opened at Rs 1,041 and has seen a combined 469,000 shares changing hands in first hour of trading on BSE and NSE.
The pharmaceutical stock, currently trading at its record high, has surged 62% in past two weeks compared to 1.7% rise in benchmark S&P BSE Sensex since June 4, 2014.
Natco Pharma, a mid-sized pharmaceutical company, had posted more than doubled net profit of Rs 24.02 crore for the quarter ended March 31, 2014 as against Rs 11.32 crore last year. Its gross revenues grew by 13% to Rs 200 crore on yoy basis.
The company said, the turnover and the profit growth was driven by strong performance on account of export of finished dosage formulations to North America and South America in addition to growth in the domestic oncology products division by 17%.
Siddhant Khandekar and Krishna Kiran Konduri analysts at ICICI Securities expect Natco Pharma’s base business revenues to grow at a CAGR of 17.5% in FY14-16E to Rs 1,020 crore.
"We have increased revenues considering the management indication of Lansoprazole OTC launch in H2FY15. We expect the company to launch generic Glivec in the EU market and Doxil in the US market," analysts said in a research report dated June 18, 2014.
The stock opened at Rs 1,041 and has seen a combined 469,000 shares changing hands in first hour of trading on BSE and NSE.
The pharmaceutical stock, currently trading at its record high, has surged 62% in past two weeks compared to 1.7% rise in benchmark S&P BSE Sensex since June 4, 2014.
Natco Pharma, a mid-sized pharmaceutical company, had posted more than doubled net profit of Rs 24.02 crore for the quarter ended March 31, 2014 as against Rs 11.32 crore last year. Its gross revenues grew by 13% to Rs 200 crore on yoy basis.
The company said, the turnover and the profit growth was driven by strong performance on account of export of finished dosage formulations to North America and South America in addition to growth in the domestic oncology products division by 17%.
Siddhant Khandekar and Krishna Kiran Konduri analysts at ICICI Securities expect Natco Pharma’s base business revenues to grow at a CAGR of 17.5% in FY14-16E to Rs 1,020 crore.
"We have increased revenues considering the management indication of Lansoprazole OTC launch in H2FY15. We expect the company to launch generic Glivec in the EU market and Doxil in the US market," analysts said in a research report dated June 18, 2014.
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