Geojit recommended accumulate rating on Natco Pharma with a target price of Rs 881 in its research report dated August 14, 2020.
Geojit's research report on Natco Pharma
We expect the combination of existing products such as Chloroquine, Oseltamivir as well as the launch of Revlimid in the U.S and its focus on other regulated markets to drive overall profitability. Total revenues were up 13% YoY during the quarter led by strong performance in the export formulation and API segments. Formulation exports grew by 29% YoY, led by strong showing in the U.S where Chloroquine and Oseltamivir posted good volumes. The domestic formulation segment de-grew by 24% during the quarter with its Hepatitis and Oncology products posting decline in numbers.
Outlook
We upgrade our rating from "Sell" to "Hold" by valuing Natco at 26x FY22 EPS with a target of Rs.881.
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