Natco Pharma share price gains 18% to scale 52-week highs on strong Q3 performance; Should you Buy, Sell or Hold?

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Natco Pharma gained more than 18% during intraday trades to scale 52- week highs on Friday. The stock closed with gains of around 15.8% by end of the trading session. The strong beat in Q3 performance has lifted investor sentiments.

Natco during the October to December 2023 quarter saw its net profit at ₹212.7 crore grow more than three folds over ₹62.3 Crore in the same period last year. The contributions form the generics of Revlimid, the multiple myeloma treatment drug. Natco business model is to target large and blockbuster product launches in the US markets, partnering with other large pharma companies.

Natco Pharma Q3 revenues at ₹796 crore were also grew 55% year-on-year. However its was strong up tick in operating performance that lifted the show. Also Read- Despite a 17% fall in 2024 YTD, Morgan Stanley sees a 49% upside in HDFC Bank; here's why The Earnings before Interest Tax depreciation and amortisation (Ebitda) at ₹305 crore grew 140% over ₹126.7 crore in the year ago quarter.

Natco Pharma beat consensus Q3FY24 revenue and Ebitda estimates by 33% and 84% respectively said analysts at Nuvama Institutional equities. This was led by higher generic Revlimid share while Rest of the world market (RoW) sales are also picked up. Natco Pharma export formulation revenues 605.6 Crore improved well from ₹333.7 in the year ago quarter though domestic revenue growth remained muted.