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Natco Pharma (BOM:524816) Profitability Rank : 8 (As of Mar. 2024)


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What is Natco Pharma Profitability Rank?

Natco Pharma has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Natco Pharma's Operating Margin % for the quarter that ended in Mar. 2024 was 41.36%. As of today, Natco Pharma's Piotroski F-Score is 6.


Competitive Comparison of Natco Pharma's Profitability Rank

For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Natco Pharma's Profitability Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Natco Pharma's Profitability Rank falls into.



Natco Pharma Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Natco Pharma has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Natco Pharma's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=4418 / 10683
=41.36 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Natco Pharma has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Natco Pharma Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.5%.

4. Consistency of the profitability

5. Predictability Rank


Natco Pharma Profitability Rank Related Terms

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Natco Pharma (BOM:524816) Business Description

Traded in Other Exchanges
Address
Road No. 2, NATCO House, Banjara Hills, Hyderabad, TG, IND, 500034
Natco Pharma Ltd is a major drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. Within the pharma business segment, the company drives its sales through Finished Dosage Forms and Active Pharmaceutical Ingredients.

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