Natco Pharma surges 3% on positive outlook

Shares of Natco Pharma Ltd rose 3 percent in the early trade on June 26 on the back of positive sentiment for the company. The company’s robust product pipeline and strong positioning in catering to the growing demand for affordable healthcare are the factors behind the upbeat sentiment.

The volumes were also positive as 11 lakh shares changed hands against the one-month daily traded average of 9 lakh shares.

The share, which has gained almost 10 percent in the past five sessions, has given a return of 25 percent in the last six months.

The stock experienced a significant breakout after a consolidation period of approximately six weeks, accompanied by robust trading volumes, Rajesh Palviya of Axis Securities said.

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Recently, it exhibited a bullish moving average convergence (MACD). There has been a bullish signal with the 50-day exponential moving average (EMA) crossing above the 200-day EMA during the past week, indicating a positive trend.

The company posted a consolidated net profit of Rs 275 crore in the fourth quarter of FY23. Natco reported a net loss Rs 50 crore during the year-ago quarter. Its revenue climbed 52 percent to Rs 927 crore from Rs 610 crore during Q4FY22.

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Natco Pharma said the growth in revenue in the US market along with the growth of its subsidiaries in Canada and Brazil played a pivotal role in driving the company’s financial performance.

At 11.14 am, the share was trading at Rs 694.95 on the National Stock Exchange, up 3.11 percent from the previous close.

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