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Natco Pharma's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 108.79.
Natco Pharma's Days Inventory for the
three
months ended in Mar. 2026 was 535.88.
Natco Pharma's Days Payable for the
three
months ended in Mar. 2026 was 241.43.
Therefore, Natco Pharma's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 403.24.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Natco Pharma Cash Conversion Cycle Related Terms
Natco Pharma Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Natco Pharma's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:NATCOPHARM vs ZTS, UTHR: Cash Conversion Cycle Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Natco Pharma Cash Conversion Cycle vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Natco Pharma's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Natco Pharma's Cash Conversion Cycle for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Natco Pharma (NSE:NATCOPHARM) has a Cash Conversion Cycle of 403.24 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Natco Pharma and its competitors.
Is Natco Pharma's Cash Conversion Cycle too high?
Natco Pharma's current Cash Conversion Cycle is 403.24. The Drug Manufacturers industry median Cash Conversion Cycle is 145.92. Natco Pharma's value of 403.24 is 176.3% above this industry median. Overall, Natco Pharma has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's Cash Conversion Cycle compare to ZTS and UTHR?
Natco Pharma's Cash Conversion Cycle of 403.24 can be compared against companies in the Drug Manufacturers industry. The industry median Cash Conversion Cycle is 145.92. Natco Pharma's value of 403.24 is 176.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Drug Manufacturers company?
The median Cash Conversion Cycle among Drug Manufacturers companies is 145.92, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Natco Pharma's current Cash Conversion Cycle of 403.24 is 176.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Natco Pharma and its competitors. For the Drug Manufacturers industry, the median Cash Conversion Cycle is 145.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current Cash Conversion Cycle is 403.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹930.81, compared to a current price of ₹966.20 — trading 3.8% above its estimated fair value. The current Cash Conversion Cycle is 403.24 and 176.3% above the Drug Manufacturers industry median of 145.92. Natco Pharma's overall GF Score™ is 89/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Natco Pharma (NSE:NATCOPHARM), the current Cash Conversion Cycle is 403.24 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued.
The current stock price of ₹966.20 is trading 3.8% above its estimated GF Value™ of ₹930.81.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
Cash Conversion Cycle: 403.24
GF Value™: ₹930.81 vs. price of ₹966.20 (3.8% above fair value)
Industry Position: 176.3% above the Drug Manufacturers median
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
89GF Score
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