Natco Pharma - Current Valuation

Natco Pharma has seen a sharp correction, now trading around ₹913 — nearly 35–40% below its recent highs.

📉 Market Fear: The stock has been heavily punished due to concerns about Revlimid revenue loss post-2026.

💰 Strong Financials: Debt-free, over ₹3000 Cr cash reserves, consistent free cash flow.

🚀 Upcoming Triggers: Para-IV filings (Semaglutide, Olaparib), agrochemical business expansion, and potential acquisitions.

📊 Valuation: Current P/E ~9–10x, significantly lower than the broader pharma sector average of 20–25x.

My personal 1-year view based on current data:

Potential recovery to ₹1300–1500 if key triggers play out.

Downside appears limited unless significant negative developments emerge.
Risk-reward appears favorable at current levels for long-term investors.
Note: This is not a recommendation - just my personal interpretation based on public information.

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