The bumper earnings in 4QFY17 were mostly expected
and there was no surprise element. We however believe that company is almost
launch ready for gCopaxone in June-2017. We gain significant confidence that
Mylan/Natco are most likely to launch the drug soon which is the most important
trigger for the Natco at the moment. Company has responded all the queries on
gCopaxone and from the commentary in the conference call, it’s just a matter of
time before the company launches this gCopaxone 20mg and 40mg. We value
Natco’s base business at 24x of its FY19E EPS to 587 per share and add NPV of
R&D pipeline of Rs471 to derive new price target of Rs1,060. Our target indicates
10% upside from the CMP of Rs968.

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