Natco Pharma Ltd Multibagger 2021 Analysis
This article we can explore the possibility of Natco Pharma Ltd as a Multibagger 2021 Stock based on Value Investing principles.
About Natco Pharma Ltd
NATCO Pharma Ltd. is an India-based vertically integrated and R&D focused enterprise, engaged in developing, manufacturing and marketing finished dosage formulations (FDF) and active pharmaceutical ingredients (APIs) and intermediates. It is one the market leaders in branded oncology medicines in India, and among the country’s top producers of hepatitis C drugs.
Incorporated in Hyderabad in 1981 by Shri Venkaiah Chowdary Nannapaneni with an initial investment of INR 3.3 million. The Company has eight manufacturing facilities in its pharmaceutical business, which include 6 FDF and 2 API facilities, spread across India with dedicated modern research laboratories and capabilities in New Drug Development. The Company focuses on niche therapeutics areas and complex products, which gives it a unique positioning in the market, spread over 40 countries. It sells FDF products in the US, India, Europe and Rest of the World (RoW); with substantial clientele in Canada and Brazil as well.
NATCO is constantly driven by its mission to ‘make specialty medicines accessible to all.’ As of March 31, 2021, it employs around 5000 people. Having forayed into the agrichemical business in 2019, NATCO has two units under its Crop Health Sciences division at Attivaram in Nellore.
Company manufacture API products which are primarily used for captive consumption in our FDF products and are also sold to customers for various international markets such as Brazil, Europe and USA. In the API segment, it has capabilities to develop and manufacture products with multi-step synthesis, semi synthetic fusion technologies, high-potency APIs and peptides. NATCO also engaged in contract manufacturing business, whereby we undertake selected contracts with pharmaceutical companies to manufacture and supply pharmaceutical. Company have recently diversified into the business of crop health sciences to leverage our skills in organic chemistry
Natco believes that sustainable development, in any environment, has to be a participatory process, with employees and local population, being the biggest stakeholder. Company work closely with the local community to keep the air, water and land both safe and healthy. Natco plays a proactive role in minimizing pollution across in all the units. Companies EHS policy is mentored by an in-house EHS organizational set-up. In their journey towards sustainability, the EHS team sets goals and benchmarks every year and works towards achieving them.
- Speciality Pharma
- Cardiology and Diabetology
- International Formulations
- Active Pharmaceutical Ingredients
- Contract Manufacturing
- Crop Health Sciences
- Glatiramer Acetate
- Liposomal Doxorubicin
- Hepcinat and its combinations
- Veenat (Imatinib)
- Analytical R&D capabilities
- Structural Chemistry and Solid State Characterisation.
- Generic Research
- Intellectual Property
- New Drug Discovery
- Collaborative research & development
- Co-development of NCEs & partnerships
Profit & loss
Warren Buffett Checklist
- Company is undergoing Capital Expansion
- Company is almost debt free
- Past 5 Years shows NO sales growth
- Profit includes Other Income component of 50%
As per the Expansion & Value Investing grounds the company have Multibagger Potential
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