NATCO Pharma witnessed a sharp decline in its share price on Thursday after reporting a significant drop in its Q3FY25 net profit. The pharmaceutical company recorded a 37.75% year-on-year (YoY) decline in net profit to Rs 132.4 crore, leading to a sharp sell-off in its stock. Despite the profit slump, NATCO Pharma declared a third interim dividend of Rs 1.50 per share. Analysts have set a target price of Rs 1,349 for the stock.
Table of Contents
NATCO Pharma Q3 Results
NATCO Pharma reported a weaker-than-expected performance in its third-quarter financial results for the fiscal year 2025. Here are the key highlights:
- Net Profit: Rs 132.4 crore, down 37.75% YoY from Rs 212.7 crore in Q3FY24.
- Revenue: Revenue figures were impacted by a decline in formulation exports, while the Active Pharmaceutical Ingredient (API) segment showed positive growth.
- EBITDA Margin: Margins were under pressure due to weaker sales in the international markets.
- Dividend: The company announced a third interim dividend of Rs 1.50 per share.
NATCO Pharma Shares Target Price
Following the disappointing Q3 results, analysts have revised their target price for NATCO Pharma stock:
- Target Price: Rs 1,349
- Current Market Price: The stock opened sharply lower on Thursday, experiencing a 19% decline following the results.
- Outlook: While API revenues have shown resilience, the overall outlook remains cautious due to declining formulation exports and margin pressures.
NATCO Pharma Share Price Performance
NATCO Pharma’s stock movement reflects investor concerns over its financial performance:
- Thursday’s Trading Session: The stock saw a steep decline of 19% after the earnings report.
- 52-Week High/Low: The share price has been volatile over the past year, with fluctuations driven by market conditions and company performance.
- Investor Sentiment: The sharp drop suggests investors are reacting negatively to the Q3 profit decline and weak revenue growth.
Despite the near-term challenges, analysts remain watchful of how NATCO Pharma navigates its formulation exports and maintains profitability in upcoming quarters.
Khanderao Deshmukh aims to guide job seekers by delivering accurate, timely, and easy-to-understand information, helping them secure stable government careers.
