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Natco Pharma Ltd
NSE:NATCOPHARM

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Natco Pharma Ltd
NSE:NATCOPHARM
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Price: 1 095.75 INR 0.2% Market Closed
Market Cap: ₹196.3B

P/FCFE

14.9
Current
27%
Cheaper
vs 3-y average of 20.4

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
14.9
=
Market Cap
₹175.6B
/
Free Cash Flow to Equity
₹13.2B

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
14.9
=
Market Cap
₹175.6B
/
Free Cash Flow to Equity
₹13.2B

Valuation Scenarios

Natco Pharma Ltd is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (20.4), the stock would be worth ₹1 504.92 (37% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+290%
Average Upside
144%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 14.9 ₹1 095.75
0%
3-Year Average 20.4 ₹1 504.92
+37%
5-Year Average 16.9 ₹1 244.89
+14%
Industry Average 57.9 ₹4 273.24
+290%
Country Average 49.7 ₹3 669.99
+235%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
IN
Natco Pharma Ltd
NSE:NATCOPHARM
196.3B INR 14.9 12.6
US
Eli Lilly and Co
NYSE:LLY
908.9B USD 61.3 36
US
Johnson & Johnson
NYSE:JNJ
547.1B USD 21 26
CH
Roche Holding AG
SIX:ROG
248.4B CHF 27.5 20.1
UK
AstraZeneca PLC
LSE:AZN
209.6B GBP 36.2 27.4
CH
Novartis AG
SIX:NOVN
221.1B CHF 9.4 20.7
US
Merck & Co Inc
NYSE:MRK
277.6B USD 12.2 31.1
IE
Endo International PLC
LSE:0Y5F
244.4B USD -766.6 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.2T DKK 24.3 12.1
US
Pfizer Inc
NYSE:PFE
149.7B USD 24.3 19.3
US
Bristol-Myers Squibb Co
NYSE:BMY
118.9B USD 37.8 4 516.9
P/E Multiple
Earnings Growth PEG
IN
Natco Pharma Ltd
NSE:NATCOPHARM
Average P/E: 472.2
12.6
-23%
N/A
US
Eli Lilly and Co
NYSE:LLY
36
32%
1.1
US
Johnson & Johnson
NYSE:JNJ
26
8%
3.3
CH
Roche Holding AG
SIX:ROG
20.1
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
27.4
25%
1.1
CH
Novartis AG
SIX:NOVN
20.7
14%
1.5
US
Merck & Co Inc
NYSE:MRK
31.1
14%
2.2
IE
E
Endo International PLC
LSE:0Y5F
Negative Multiple: -83.6 N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
12.1
0%
N/A
US
Pfizer Inc
NYSE:PFE
19.3
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
4 516.9
648%
7

Market Distribution

Lower than 85% of companies in India
Percentile
15th
Based on 1 683 companies
15th percentile
14.9
Low
0.6 — 27.4
Typical Range
27.4 — 92
High
92 —
Distribution Statistics
India
Min 0.6
30th Percentile 27.4
Median 49.7
70th Percentile 92
Max 57 010.1

Natco Pharma Ltd
Glance View

Nestled in the bustling business corridors of Hyderabad, India, Natco Pharma Ltd. has cultivated a strong presence in the pharmaceutical industry over the decades. Founded in 1981, the company initially ventured into the local market, gradually establishing itself as a critical player through specialization in complex chemistry and niche therapeutic sectors. The company's primary focus is on the development and manufacturing of generic drugs, specifically in the oncology and neurology segments. In these high-stakes areas, Natco leverages its robust research and development capabilities to produce affordable alternatives to expensive branded medications, thereby ensuring access to critical treatments for broader populations. Natco Pharma's business acumen extends beyond merely producing generics. It is adept at capitalizing on patent expirations, quickly launching generics and biosimilars in both domestic and international markets. The company has strategically focused operations in markets such as the United States and Europe, where it partners with local distributors to reach end-users. Through a combination of manufacturing efficiencies and strategic partnerships, Natco is able to maintain competitive pricing, thus enhancing its market penetration and revenue generation. Its integrated business model, combining in-house R&D, manufacturing, and distribution, ensures that Natco remains a formidable player, bridging the gap between complex pharmaceuticals and cost-effective healthcare solutions.

NATCOPHARM Intrinsic Value
717.16 INR
Overvaluation 35%
Intrinsic Value
Price ₹1 095.75
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