Natco PharmaNSE:NATCOPHARM +2.34%89 Quick Ratio is 2.47 as of Mar. 2026, which is 9% below its 10-year median of 2.72. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 89/100 and a GF Value™ of ₹932.30 (Fairly Valued). The stock has 2 warning signs investors should review. Among 999 Drug Manufacturers companies, Natco Pharma ranks better than 70.67% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Natco Pharma's quick ratio for the quarter that ended in Mar. 2026 was 2.47.
Natco Pharma has a quick ratio of 2.47. It generally indicates good short-term financial strength.
The historical rank and industry rank for Natco Pharma's Quick Ratio or its related term are showing as below:
NSE:NATCOPHARM'
s Quick Ratio Range Over the Past 10 Years
Min: 1.18 Med: 2.72 Max: 4.77
Current: 2.47
During the past 13 years, Natco Pharma's highest Quick Ratio was 4.77. The lowest was 1.18. And the median was 2.72.
NSE:NATCOPHARM's Quick Ratio is ranked better than 70.67% of 999
companies
in the Drug Manufacturers industry
Industry Median: 1.45
vs NSE:NATCOPHARM: 2.47
Natco Pharma (NSE:NATCOPHARM) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Natco Pharma Quick Ratio Related Terms
Natco Pharma Quick Ratio Historical Data
* Premium members only.
The historical data trend for Natco Pharma's Quick Ratio 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: Quick Ratio Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Natco Pharma's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Natco Pharma's Quick Ratio 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 Quick Ratio of 2.47 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Natco Pharma and its competitors. This is near median its historical median of 2.72. Over the past decade, Natco Pharma's Quick Ratio has ranged from 1.18 to 4.77. According to the industry distribution chart, Natco Pharma ranks #293 out of 999 companies in the Drug Manufacturers industry, placing it in the top 29.3%.
Is Natco Pharma's Quick Ratio too high?
Natco Pharma's current Quick Ratio of 2.47 is near median its 10-year median of 2.72. Over the past 10 years, this metric has ranged from a low of 1.18 to a high of 4.77. The Drug Manufacturers industry median Quick Ratio is 1.45. Natco Pharma's value of 2.47 is 70.3% above this industry median. Based on the distribution chart, Natco Pharma ranks #293 out of 999 companies in the Drug Manufacturers industry, which is above the industry midpoint. 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 Quick Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #293 out of 999 companies for Quick Ratio. This puts Natco Pharma in the upper half of its industry. The industry median Quick Ratio is 1.45. Natco Pharma's value of 2.47 is 70.3% above this benchmark. Historically, Natco Pharma's own Quick Ratio has ranged from 1.18 to 4.77 over the past decade. While the company's 10-year median is 2.72 vs. the industry median of 1.45, Natco Pharma has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Drug Manufacturers company?
The median Quick Ratio among Drug Manufacturers companies is 1.45, based on 999 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Natco Pharma's current Quick Ratio of 2.47 is 70.3% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Natco Pharma and its competitors. For the Drug Manufacturers industry, the median Quick Ratio is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current Quick Ratio is 2.47, which is near median its own 10-year median of 2.72. 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 ₹932.30, compared to a current price of ₹984.10 — trading 5.6% above its estimated fair value. The current Quick Ratio is 2.47, which is near median its 10-year median of 2.72 and 70.3% above the Drug Manufacturers industry median of 1.45. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Natco Pharma (NSE:NATCOPHARM), the current Quick Ratio is 2.47 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 ₹984.10 is trading 5.6% above its estimated GF Value™ of ₹932.30.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
Quick Ratio: 2.47 (near median its 10-year median of 2.72)
GF Value™: ₹932.30 vs. price of ₹984.10 (5.6% above fair value)
Industry Position: 70.3% above the Drug Manufacturers median (#293 of 999)
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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