Natco Pharma (NSE:NATCOPHARM) Net-Net Working Capital : ₹113.78 (As of Mar. 2024)

View and export this data going back to 1995. Start your Free Trial

What is Natco Pharma Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Natco Pharma's Net-Net Working Capital for the quarter that ended in Mar. 2024 was ₹113.78.

The industry rank for Natco Pharma's Net-Net Working Capital or its related term are showing as below:

NSE:NATCOPHARM's Price-to-Net-Net-Working-Capital is ranked worse than
62.35% of 409 companies
in the Drug Manufacturers industry
Industry Median: 6.74 vs NSE:NATCOPHARM: 10.30

Natco Pharma Net-Net Working Capital Historical Data

The historical data trend for Natco Pharma's Net-Net Working Capital 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.

* Premium members only.

Natco Pharma Net-Net Working Capital Chart

Natco Pharma Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Net-Net Working Capital

Get a 7-Day Free Trial

42.88

46.96

41.69

74.24

113.78

Natco Pharma Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Net-Net Working Capital	Get a 7-Day Free Trial															74.24	-	80.95	-	113.78

Competitive Comparison of Natco Pharma's Net-Net Working Capital

For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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's Price-to-Net-Net-Working-Capital Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Natco Pharma's Price-to-Net-Net-Working-Capital falls into.

Natco Pharma Net-Net Working Capital Calculation

Natco Pharma's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2024 is calculated as

	Net-Net Working Capital		(A: Mar. 2024 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(18492	+	0.75 * 11889	+	0.5 * 7005	-	10532
-	0	-	0)	/	179.11
=	113.78

Natco Pharma's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2024 is calculated as

	Net-Net Working Capital		(Q: Mar. 2024 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(18492	+	0.75 * 11889	+	0.5 * 7005	-	10532
-	0	-	0)	/	179.11
=	113.78

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

Natco Pharma (NSE:NATCOPHARM) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

Natco Pharma Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Natco Pharma's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.

Natco Pharma (NSE:NATCOPHARM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Natco Pharma Ltd (NSE:NATCOPHARM) » Definitions » Net-Net Working Capital

Traded in Other Exchanges

524816:India

Address

Road No. 2, NATCO House, Banjara Hills, Hyderabad, TG, IND, 500034

Website

https://www.natcopharma.co.in

Natco Pharma Ltd is a major 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. Within the pharma business segment, the company drives its sales through Finished Dosage Forms and Active Pharmaceutical Ingredients.

Natco Pharma (NSE:NATCOPHARM) Headlines

No Headlines