Natco Pharma, Lesson Learnt

A sharp decline in sales and profits, with their formulations export business taking a significant hit. I haven’t followed their recent con calls—did they signal an impending downtrend in sales? I noticed DIIs selling, but FIIs were buying at the same time. Their financial health appeared strong, yet a single weak quarter changed everything. Warren Buffett’s words come to mind: “Never invest in a business you cannot understand.” A valuable lesson learnt.