Natco Pharma gains nearly 3% on ₹2,500 crore South Africa investment plan

Natco Pharma has announced investments of nearly ₹2,500 crore in South Africa, including infusing ₹1,400 crore in its arm in the country with an aim to enter new geographies.

Natco Pharma share price today: Natco Pharma shares gained nearly 3 per cent in morning trade on Wednesday after the company announced investments of nearly ₹2,500 crore in South Africa, including an infusion of ₹1,400 crore into its arm (Natco Pharma South Africa Proprietary) in the country with an aim to enter new geographies.

 

The pharma stock opened at ₹966.35 on the National Stock Exchange (NSE) and climbed to an intraday high of ₹989.50.

 

As of 10:30 AM, Natco Pharma shares were holding on to the gains, trading 2 per cent higher at ₹986.50. In comparison, the Nifty 50 index was up 0.69 per cent.

 

 

Natco Pharma, a constituent of the Nifty Smallcap 100 index, has gained 11 per cent so far in 2026, compared with an 8 per cent decline in the Nifty 50. In the past one year, the pharma company's shares have slipped 3 per cent, against a 5.6 per cent fall in the benchmark index.  Natco Pharma's ₹2,500 crore investment plan  In a regulatory filing, Natco Pharma said that it will also increase its stake in South Africa-based Adcock Ingram Holdings Proprietary Ltd (Adcock Ingram) to 49 per cent from 35.75 per cent, with the "acquisition valued at Rs 1,069 crore at the prevailing exchange rate".

 

 

As for increasing stake in Adcock Ingram, Natco said it will acquire 19,618,825 shares for ZAR 92.50 (₹5.89) per share, thus increasing its holding from 35.75 per cent to 49 per cent with a total investment cost of ZAR 1.8 billion (₹1,069 crore at the prevailing exchange rate), excluding certain associated transaction costs and other expenses. The transaction is expected to be completed before the end of July 2026.

 

Natco said that the increase in stake in Adcock Ingram has been done with an objective of expanding geographic footprint in South Africa and the African continent.

 

Founded in 1890 in South Africa, Adcock Ingram is a pharmaceutical company operating across four segments -- prescription, consumer, OTC and hospitals. It has a diverse portfolio of products ranging from generic and branded formulations to critical-care hospital products, as well as consumer and home-care products.  Natco Pharma stock: Analyst view  

Hitesh Rathi, research analyst at Angel One, said that following a remarkable rally from the 2023 lows, during which the stock nearly tripled over a span of 18 months, it has entered a corrective phase, retracing nearly 61.8 per cent of its preceding up move from the lows around the 530 mark.

 

Although the stock has recently attempted to establish a higher high–higher low structure, the sharp decline witnessed during May-June from the overhead resistance of 45-degree trendline, has weakened the technical setup and dampened the overall sentiment. That said, the stock continues to hold above its crucial long-term support band in the ₹820–760 zone. As long as this support cluster remains intact, buyers are likely to defend the broader structure, he said.

  "However, the overall technical outlook has shifted from bullish to sideways. The formation of a Bearish 100 per cent Pole on the higher-timeframe 3 per cent × 3 Point & Figure chart further warrants caution. A decisive break down below the ₹820–760 support zone would signal a deterioration in the broader technical structure and could potentially mark the beginning of a primary downtrend," he said.  ============================================= 

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