Biocon Ltd. (BIOCON) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Glenmark Pharma

Laurus Labs

Aurobindo Pharma

Alkem Lab

Ipca Labs

Biocon

Abbott India

Ajanta Pharma

Gland Pharma

Glaxosmi. Pharma

Anthem Bioscienc

Why is Biocon Ltd. ?

Negative results in Sep 25

PAT(Latest six months) At Rs 125.13 cr has Grown at -79.57%
PBT LESS OI(Q) At Rs 90.20 cr has Fallen at -38.8% (vs previous 4Q average)
INTEREST(Latest six months) At Rs 548.90 cr has Grown at 25.95%

With ROCE of 4.4, it has a Attractive valuation with a 1.7 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.61%, its profits have fallen by -66.6%

High Institutional Holdings at 28.71%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Biocon should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Biocon for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Biocon

4.61%

0.14

33.08%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.54%

EBIT Growth (5y)

11.88%

EBIT to Interest (avg)

6.16

Debt to EBITDA (avg)

4.53

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

0.46

Tax Ratio

16.29%

Dividend Payout Ratio

5.92%

Pledged Shares

Institutional Holding

28.71%

ROCE (avg)

6.69%

ROE (avg)

5.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

113

Industry P/E

Price to Book Value

1.96

EV to EBIT

38.75

EV to EBITDA

18.44

EV to Capital Employed

1.69

EV to Sales

3.82

PEG Ratio

Dividend Yield

0.13%

ROCE (Latest)

4.36%

ROE (Latest)

1.74%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CF(Y)

Highest at Rs 4,061.20 Cr

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 4,601.10 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.62 times

-14What is not working for the Company

PAT(Latest six months)

At Rs 125.13 cr has Grown at -79.57%

PBT LESS OI(Q)

At Rs 90.20 cr has Fallen at -38.8% (vs previous 4Q average

INTEREST(Latest six months)

At Rs 548.90 cr has Grown at 25.95%

ROCE(HY)

Lowest at 4.31%

NON-OPERATING INCOME(Q)

is 50.76 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Biocon

Operating Cash Flow - Annually

Highest at Rs 4,061.20 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 4,601.10 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.62 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Biocon

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 90.20 cr has Fallen at -38.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 147.40 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 125.13 cr has Grown at -79.57%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Latest six months

At Rs 548.90 cr has Grown at 25.95%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 50.76 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 93.00 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income