Natco update. Post the earlier post I had bought Natco and sold at around 850 kind of levels with decent profits. Since then I did not track it too regularly. But I happened to see the recent results and on reading the concall, came across management comments about delivering atleast 20% growth for FY 25. Just for the record, FY 24 net profit was at 1388 and this is after some write offs as mentioned in results/concall. Revlimid momentum continues and overall growth seen from geographies other than US also. Cash on balance sheet close to 2000 crores with around 120 cr debt.
Post results it hit a high of 1100 and promptly corrected and along with the rollercoaster market it also went down to post a swing low of 952 in the turmoil yesterday and managed to close again above 1000 today.
Attached chart contains GMMA (guppy multiple moving averages ) and is a weekly chart. Range bound trading was seen in Natco from 520 to 1020 from July 2016 till date with ocassional attempt at levels above the range which was for brief period.
On right side of chart a cup and handle pattern is marked and stock price has broken above that and managed to stay above that. Technical target for that is 1300 plus. Now we can also see a previously marked cup and handle breakout that happened and stock price went up briefly only to correct significantly. Hence the need to check on fundamentals.
disc: invested.
For anyone wanting to study this company, there is presentation, concalls etc. disc: invested based on techno funda picture. (anyone contemplating investing should do their own diligence, this is not an investment advice)
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