Natco Pharma stock surges 8%, hits new 52-week high on strong Q4 show

On Monday, Natco Pharma reported a 40.1 per cent year-on-year (YoY) surge in net profit, totaling Rs 386.3 crore in Q4FY23, up from Rs 275.8 crore

Shares of Natco Pharma surged up ro 7.67 per cent, hitting its 52-week high of Rs 1,108.95 per share on the BSE in Tuesday’s intraday deals. The hike in stock price came after Natco Pharma delivered its January-March quarter earnings for the fiscal year 2023-24 (Q4FY24). 

On Monday, the company reported a 40.1 per cent year-on-year (YoY) surge in net profit, totaling Rs 386.3 crore in Q4FY23, up from Rs 275.8 crore registered in the same quarter of the previous fiscal year. 

The company's revenue from operations also shot up by 19 per cent, reaching Rs 1,068.3 crore compared to Rs 898 crore in the corresponding period last year.

Earnings before interest, tax, depreciation, and amortisation (Ebitda) climbed 46.6 per cent to Rs 497.3 crore in the fourth quarter of the current fiscal year, up from Rs 339.2 crore in Q4FY23. 

This resulted in an improved Ebitda margin of 46.6 per cent for the reporting quarter, compared to 37.8 per cent in the same period of the previous fiscal year. 

On a full year basis, the company reported consolidated total revenue of Rs 4,126.9 crore, a growth of 46.8 per cent compared to Rs 2,811.7 crore in the previous year. 

Furthermore, the net profit for the period, on a consolidated basis, amounted to Rs 1,388.3 crore, a sharp rise from Rs 715.3 crore in the previous year, reflecting a growth rate of 94.1 per cent.

At 12:22 PM; the stock of the company gave up most of its early gains, trading 1.44 per cent higher at Rs 1044.05 per share. By comparison, the S&P BSE Sensex was trading flat, down marginally by 0.03 per cent at 75,367 levels. The share of Natco Pharma is presently trading at a price to earnings multiple of 14.32 times.