Mid Cap Stock Pick - Natco Pharma

Traderji

Super Moderator
#1
Mid Cap Stock Pick - Natco Pharma

Business Profile
Natco Pharma Ltd. was incorporated on 19th September, 1981 in Andhra Pradesh as a Pvt. Ltd. Company as Natco Fine Pharmaceuticals P. Ltd. and became a deemed public company with effect from 1st July, 1992 under Section 43A of the Act. Subsequently, it changed its name to Natco Pharma Ltd. on 18th February, 1993 and received a change of name. The Company began operations in 1984 with an objective to manufacture conventional and Timed Release Dosage forms of life savings drugs. The major products manufactured by the company are as follows: flocy (ciprofloxacin HCI), Natcocillin (Ampicillin), Natamox (Amoxycillin), Tr Phyllin (Theophylline), Betacap TR (Propranolol HCI), Cardicap TR (Isosorbide-Di Nitrate), Ibubid TR (Ibuprofen), NalcoTR (Diclofenac Sodium), Camrelease TR (Diazepam), Cepiam TR (Chlorpheniramine Maleate), Potrelease TR (Potassium Chloride), Coldact (Phenyl Propanolamine HCI + Chlorpheniramine Maleate). The company now has a basket of over 40 brands with presence in over ten States. And has built a strong field force for marketing its brands.

Recent Developments
Besides, the financial restructuring, the company has undertaken the following business restructuring, which included, among others:a) More emphasis on Research & Development as a driving force for the over-all business; b) Concentration on low-volume, high-margin custom synthesized material for exclusive supply to customers; c) Foray into own branded formulations from which the Company exited in 1998; d) Foray into branded generics; e) Planned growth of contract manufacturing business; f) Establishing ourselves as a contract research organization; These measures, in combination, have ensured that the fortunes of the company have turned round.

Future Plans
In the current year, the company envisage a 30 per cent increase in revenues over last year, with a corresponding increase in the bottom-line. The full effect of restructuring should be felt in the current year. With the reduction in interest costs, the future looks promising.

The current debt-equity ratio stands approximately 3:1 (excluding working capital borrowings). With an improved business outlook and the company plans to reduce the long-term debt, it plan to bring the ratio to 2:1 by next year and further improve it in the coming years.

See attached chart for trading opportunity, trading signal and stoploss levels.

Any comments?? Please post them here!
 

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#2
Good call Traderji,

More about Natco Pharma...

Natco Pharma has reported 28 per cent growth in revenues at Rs. 154 crores for the year ended March 2004 against Rs. 120 crores in the previous year. The net profit has risen by over 100 per cent to Rs. 13 crores from Rs. 5.15 crores. The growth has been driven by the business divisions Active Pharmaceutical Ingredients (APIs), and finished dosage formulations.
 
#4
Dear Trader

Natco Pharma has strong resistance around 90 levels.However
Natco is on strong fundamental wicket in respect of new product launches
in niche segments.Equity dilution may be a concern in near future but
improved mangement perception may sustain price at higher levels.Only
concern about DPCA from govt. Good support at 81 levels.Uptrend
established in the short trem . Comment

A K RAZDAN JAMMU
 
#5
GREAT CALL on NATCO PHARMA, Traderji!

After many years of scouring the net, you are the only analyst that makes sense. You sure know your stuff. I'm impressed - You picked a stock and it shot up when all others are falling like nine pins!!!

Keep it UP!

NATCO PHARMA is currently at 93.00. Thanks to you I now book profits$$$
 
#6
With Traderji recommendation, you can rarely go wrong!

Traderji knows the pulse of the market, unlike many other analyst who come in the Media!

Keep it up!!
 
#7
NATCO PHARMA closes at 98.25

Thank you traderji, I was reluctant at first, but now I am convinced!!

Keep up this great work!!

I am looking forward to your next TIP
 
#10
Yes a good call.

Market commentators we hotly recommending this stock on TV??

Wonder where they get their info from??? heh :D heh ;)
 

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