Ankush Agarwals original article on Natco Pharma published at the SOIC blog is very well researched and written covering all aspects of the company including management. I am sharing the twitter link to the article here for anyone who is interested:
https://twitter.com/soicfinance/status/1412698323648008193?s=20
At the time that this Blog was published (7 July 2021), the market cap of Natco was around 20,000 crores. Now its 12,400 crores… that is why probably he ends with the quote in the March 2023 note as given in your link that, ‘If markets do not reward Natco’s next two quarters performance, then probably it never will.’ It continues to test the patience of even those who have minutely studied the business and are the most optimistic of its long term success…
In the Q4 FY2023 concall, participants asked questions on the shrinking base business, management said they are cognizant of it and stated that perhap this year they may do a domestic pharma company acquisition and use/leverage the foreign subsisidiaries to expand the base business meaningfully… perhaps this is the missing link in Natcos valuation expansion journey.
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