Natco Pharma Ltd banner

Natco Pharma Ltd
NSE:NATCOPHARM

Watchlist Manager
Natco Pharma Ltd Logo
Natco Pharma Ltd
NSE:NATCOPHARM
Watchlist
Price: 1 091.95 INR 1.91% Market Closed
Market Cap: ₹195.6B

EV/EBIT

9.8
Current
5%
Cheaper
vs 3-y average of 10.4

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
9.8
=
Enterprise Value
₹137.4B
/
EBIT
₹16B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
9.8
=
Enterprise Value
₹137.4B
/
EBIT
₹16B

Valuation Scenarios

Natco Pharma Ltd is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (10.4), the stock would be worth ₹1 154.36 (6% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+160%
Average Upside
84%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 9.8 ₹1 091.95
0%
3-Year Average 10.4 ₹1 154.36
+6%
5-Year Average 12.9 ₹1 438.58
+32%
Industry Average 25.6 ₹2 841.31
+160%
Country Average 23.3 ₹2 586.9
+137%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
₹137.4B
/
Jan 2026
₹16B
=
9.8
Current
₹137.4B
/
Mar 2026
₹13.3B
=
10.3
Forward
₹137.4B
/
Mar 2027
₹5.5B
=
25.2
Forward
₹137.4B
/
Mar 2028
₹6.7B
=
20.6
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
IN
Natco Pharma Ltd
NSE:NATCOPHARM
191.9B INR 9.8 12.6
US
Eli Lilly and Co
NYSE:LLY
835.2B USD 29.2 40.5
US
Johnson & Johnson
NYSE:JNJ
547.8B USD 21.4 26
CH
Roche Holding AG
SIX:ROG
248.4B CHF 13.4 20.1
UK
AstraZeneca PLC
LSE:AZN
216.4B GBP 21.9 28
CH
Novartis AG
SIX:NOVN
223.1B CHF 15.6 19.5
US
Merck & Co Inc
NYSE:MRK
276.9B USD 11.5 15.2
IE
Endo International PLC
LSE:0Y5F
244.4B USD 970 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.1T DKK 9.8 11.4
US
Pfizer Inc
NYSE:PFE
153.5B USD 10.1 19.8
US
Bristol-Myers Squibb Co
NYSE:BMY
118.2B USD 8.9 16.8
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
IN
Natco Pharma Ltd
NSE:NATCOPHARM
Average EV/EBIT: 102
9.8
-31%
N/A
US
Eli Lilly and Co
NYSE:LLY
29.2
22%
1.3
US
Johnson & Johnson
NYSE:JNJ
21.4
13%
1.6
CH
Roche Holding AG
SIX:ROG
13.4
6%
2.2
UK
AstraZeneca PLC
LSE:AZN
21.9
21%
1
CH
Novartis AG
SIX:NOVN
15.6
9%
1.7
US
Merck & Co Inc
NYSE:MRK
11.5
6%
1.9
IE
E
Endo International PLC
LSE:0Y5F
970
N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
9.8
2%
4.9
US
Pfizer Inc
NYSE:PFE
10.1
-4%
N/A
US
Bristol-Myers Squibb Co
NYSE:BMY
8.9
-6%
N/A
P/E Multiple
Earnings Growth PEG
IN
Natco Pharma Ltd
NSE:NATCOPHARM
Average P/E: 21
12.6
-23%
N/A
US
Eli Lilly and Co
NYSE:LLY
40.5
32%
1.3
US
Johnson & Johnson
NYSE:JNJ
26
8%
3.3
CH
Roche Holding AG
SIX:ROG
20.1
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
28
25%
1.1
CH
Novartis AG
SIX:NOVN
19.5
14%
1.4
US
Merck & Co Inc
NYSE:MRK
15.2
14%
1.1
IE
E
Endo International PLC
LSE:0Y5F
Negative Multiple: -83.6 N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
11.4
0%
N/A
US
Pfizer Inc
NYSE:PFE
19.8
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
16.8
16%
1

Market Distribution

Lower than 87% of companies in India
Percentile
13th
Based on 2 572 companies
13th percentile
9.8
Low
0.4 — 15.7
Typical Range
15.7 — 34.7
High
34.7 —
Distribution Statistics
India
Min 0.4
30th Percentile 15.7
Median 23.3
70th Percentile 34.7
Max 48 145.1

Natco Pharma Ltd
Glance View

Nestled in the bustling business corridors of Hyderabad, India, Natco Pharma Ltd. has cultivated a strong presence in the pharmaceutical industry over the decades. Founded in 1981, the company initially ventured into the local market, gradually establishing itself as a critical player through specialization in complex chemistry and niche therapeutic sectors. The company's primary focus is on the development and manufacturing of generic drugs, specifically in the oncology and neurology segments. In these high-stakes areas, Natco leverages its robust research and development capabilities to produce affordable alternatives to expensive branded medications, thereby ensuring access to critical treatments for broader populations. Natco Pharma's business acumen extends beyond merely producing generics. It is adept at capitalizing on patent expirations, quickly launching generics and biosimilars in both domestic and international markets. The company has strategically focused operations in markets such as the United States and Europe, where it partners with local distributors to reach end-users. Through a combination of manufacturing efficiencies and strategic partnerships, Natco is able to maintain competitive pricing, thus enhancing its market penetration and revenue generation. Its integrated business model, combining in-house R&D, manufacturing, and distribution, ensures that Natco remains a formidable player, bridging the gap between complex pharmaceuticals and cost-effective healthcare solutions.

NATCOPHARM Intrinsic Value
717.16 INR
Overvaluation 34%
Intrinsic Value
Price ₹1 091.95
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett