Reasonable valuations makes this midcap pharma stock an attractive buy
With the fear of the pandemic going away, sales from other divisions are expected to normalise soon.
Synopsis
Natco’s recent diversification of its exports to markets like Brazil, Canada, China, is doing well and is expected to do so in future as well. Besides, its valuations despite the recent jump are not high compared to other pharma companies. This has made the company a favourite of analysts.
Natco Pharma has surprised the market with yo-y revenue and net profit growth of 65% and 70% respectively in the second quarter of 2020-21. Pandemic related demand jump in its key product Tamiflu and Revlimid settlement have boosted the second quarter numbers. This ‘above average growth’ should not be taken as the norm. However, analysts believe that this research and development focused mid-size pharma company will repeat good performance in