Geojit is bullish on Natco Pharma has recommended buy rating on the stock with a target price of Rs 908 in its research report dated April 09, 2018.
Geojit's research report on Natco Pharma
High emphasis on R&D and complex molecules focusing on long term stability and growth. Recently raised Rs 915crs to fund capacity additions.Integrated platform makes Natco a low cost manufacturer while strong global presence establishes them as a prospective player.We expect EBITDA margin to remain stable at 40% over FY18-20E led by new launches in US & India and improvement in operational efficiency.
Outlook
We expect international/domestic niche FD segment to grow by 12%&14% resp. for FY 19/20 and factor an earnings outlook of 13%CAGR over FY18-20E. Hence, we value Natco at 19x on FY20E EPS and arrive at a target price of Rs 908 and recommend ‘Buy’ rating.For all recommendations report, click here
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