Jul 7, 2023NATURAL CAPSULES LTD. (NATCAPSUQ)
- Indian pharma company manufacturing Capsule shells and Steroidal APIs
- Major offerings in capsules include Hard Gelatin capsules (Company claims to be the 2nd largest Indian manufacturer) and HPMC (vegetarian) capsules
- HPMC capsules to target nutraceutical products. Nutraceutical market to grow at 15% CAGR between 2023-28.
- Planning to manufacture Steroidal APIs using fermentation technology
- 3 out of 4 planned APIs accepted under PLI scheme by GOI. These are: Prednisolone, Betamethasone and Dexamethasone.
- Indian API market to grow at 7-8% CAGR over next 3-5 yrs.
- Major competitors: Capsugel (world’s largest manufacturer of capsules), Qualicaps and ACG (ACG is the largest capsule manufacturer in India)
- Y-o-Y sales growth at 26% to ₹ 170 Cr., Y-o-Y profit growth at 33% to ₹ 18 Cr., OPM FY23 at 21% and FY22 at 19%
- PE is 18.4, PEG at 0.24, ROCE is 16.1% and ROE is 17.9%
Disclaimer: This is not a recommendation. The stock is under study. Premium members will be notified if and when we take any position in the stock.