Natco Pharma shares hit new 52-week high after strong earnings
Natco shares have gained more than 27% over the past five trading sessions following strong quarterly earnings.
Shares of Hyderabad-based Natco Pharma continued to gain on February 19, rising over 4.5% to a fresh 52-week high of ₹1,108 per share on the NSE. Its market capitalisation is now close to around ₹18,385.63 crore.
The company, which is also a part on the S&P 500 index and BSE 500 index, has gained more than 27% over the past five trading sessions following strong quarterly earnings.
Natco's net profit rose three-fold to ₹213 crore in the third quarter (Q3FY24), aided by revenue growth of over 54% year-on-year (YoY) to nearly ₹759 crore. The company also raised its profit guidance. The margin was at 35% helped by the improved share of blockbuster cancer drug, Pomalidomide.
In March 2023, the company announced the launch of Pomalidomide capsules under its brand Nat-Pomalidomide in Canada. The Pomalidomide capsules are the first generic alternative to the Pomalyst brand and have been approved by Health Canada.
Pomalidomide is used in combination with Dexamethasone and Bortezomib for the treatment of adult patients with multiple myeloma. Multiple myeloma is a cancer of plasma cells. It is the second most common form of blood cancer in Canada with about 8,000 Canadians living with myeloma.
Natco produces finished dosage formulations, active pharmaceutical ingredients (API), and crop health science products, in addition to offering contract manufacturing services..
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Brokerage house Nuvama retained its 'buy' call on the stock post results. It raised the FY24 estimated earnings per share (EPS) by 21% and FY25 estimated EPS by 12%. In a note, the brokerage pointed out the company's focus on complex opportunities such as the massive Revlimid generic opportunity and US pipeline, which includes semaglutide, etc. Nuvama expects a pickup in Natco Pharma’s India business as well as the agrochemical business in FY25, which was sluggish in Q2.
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(Edited by : Shweta Mungre)
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