ICICI Direct has recommended `Hold` on Natco Pharma with a price target of Rs 378 as against the current market price (CMP) of Rs 390 in its report dated June. 01, 2012.

Natco reported a mixed set of Q4FY12 numbers. While revenues grew 33% YoY to Rs 1.54 billion, much higher than I-direct estimates of Rs 1.35 billion on the back of 44% growth in formulations, the EBITDA grew by just 16% YoY to Rs 260 million (I-direct estimate: Rs 280 million) on account of some one-off expenses and year-end provisions.

EBITDA margins declined 250 bps YoY to  16.8%, much lower than I-direct estimate of 21%. PAT declined 12% to Rs 125.1 million (I-direct estimate: Rs 15 million) on the back of lower EBIDA growth and higher taxation.

It maintains Hold as the stock has seen a sharp run up after the Nexavar verdict.

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