13 Month Breakout and Golden Crossover: This Low PE Pharma Stock Should Be on Your Radar

On Tuesday, the Nifty 50 extended its winning streak to a fourth straight session and moved past the 23,100 mark. Amid the broader strength in the market, stock specific action remained visible, and one pharma name that stood out was Natco Pharma.

Stock to Watch Out: Natco Pharma 13- Month Long Breakout

Natco Pharma share price surged more than 5 per cent on Tuesday and touched a fresh 52 week high. With this move, the stock broke above a horizontal resistance zone that had capped upside for more than 13 months. Since February 2025, Natco Pharma had repeatedly faced resistance in the Rs 1,051 to Rs 1,059 zone. On Tuesday, it finally moved decisively above this range, and that breakout came with above average volumes, adding weight to the move. Total traded volume on the NSE rose to 31.08 lakh shares against the 30 day average of 16.33 lakh shares, which means volumes were nearly two times the recent average. This points to stronger market participation and suggests the breakout was backed by conviction.

Golden Crossover Stock

From a technical perspective, the structure remains strong. The stock is trading above its key moving averages, including the 20 DMA, 50 DMA and 200 DMA. More importantly, all of these averages are moving higher and are aligned in a favourable trend structure. The stock has also witnessed a Golden Crossover, with the 50 DMA moving above the 200 DMA, which is generally seen as a positive medium to long term signal.

The overall trend remains firmly upward and the strength of that trend is also notable. The Average Directional Index, or ADX, stands at 24.93 on the daily chart and is itself trending higher. At the same time, the +DI remains well above both the -DI and the ADX line, which reflects underlying bullish strength. The Elder Impulse System has also formed a strong bullish bar. Taken together, these signals suggest that Natco Pharma has emerged from a prolonged consolidation phase and is now showing renewed strength, making it a stock worth keeping on the radar.

Natco Pharma Launched Semaglutide Injection

On the business front, the company has seen an important development. Natco Pharma recently announced the launch of Semaglutide Injection in multi dose vials in the Indian market. NATCO is the first company to offer Semaglutide in vial dosage form. The product is also the most affordable GLP 1 option currently available in India, being around 70 per cent cheaper than the pen device and 90 per cent cheaper than the innovator’s brand. This could significantly improve accessibility to GLP 1 therapy and support better long term compliance among patients.

Natco Pharma Approves Agrochemicals Business Demerger

Another major development relates to the company’s corporate restructuring. On March 24, 2026, Natco Pharma said its board had approved a scheme of arrangement to demerge its agrochemicals business into its wholly owned subsidiary, Natco Crop Health Sciences Ltd. Under the proposed arrangement, shareholders will receive shares in the resulting company in a 1:1 ratio.

Low PE Stock Among the Peers

Valuation also adds an interesting layer to the story. Among the listed pharma peers in the table, Natco Pharma appears to be one of the cheapest stocks on a price to earnings basis, with a PE of 12.45. This is lower than peers such as Sun Pharma at 33.97, Divi’s Laboratories at 61.42, Torrent Pharma at 59.53, Lupin at 21.14, Dr Reddy’s at 17.94, Cipla at 20.42 and Zydus Lifesciences at 17.21.

What makes this even more notable is that Natco has delivered the highest one-year return in the comparison set at 41.33 per cent, despite trading at the lowest valuation multiple. On the balance sheet front too, the company looks relatively comfortable, with debt of Rs 371.2 crore and a debt to equity ratio of 0.03, which is among the lower levels in the peer group. In contrast, several larger peers carry either much higher debt in absolute terms or higher valuation multiples, or both. This combination of strong price performance, low leverage and modest valuation makes Natco stand out in the peer set.

Disclaimer: The article is for informational purposes only and not investment advice.