Biocon Ltd. share price target

The biologics segment (28% of FY19 revenues) includes biosimilars and insulin. The company is heavily spending in this space. The progress has been encouraging with approvals and launches in the US, EU, Japan, Australia, and Emerging Markets. Post the Mylan Upjohn (Pfizer) merger, the scope has been extended to China as well. We expect biologics to grow at ~57% CAGR to | 5813 crore in FY19-22E mainly due to strong US pipeline [Pegfilgrastim (launched), Trastuzumab (launched), Glargine (expected by the end of FY21E, Aspart (expected in FY22E) and Bevacizumab (expected...

While fundamentals remain strong, concerns evolve over regulatory approvals for new facilities post recent FDA observations. We rate the stock a HOLD with target price of Rs. 260 based on ~24x FY21E adj. EPS. Robust revenue growth across segments Consolidated operating revenue grew 19.0% YoY to Rs. 1,572cr, primarily driven by growing revenue from Biologics (+40.4% YoY to Rs. 516cr on higher sales in developed and emerging markets) and Small Molecules segments (+22.6% to Rs. 530cr backed by substantial growth in generic formulations business). Revenue from Research Services...

Revenues grew 19.0% YoY to | 1572.2 crore (I-direct estimate: | 1618.3 crore) mainly due to 40.6% YoY growth in biologics to | 516.1 crore (I-direct estimate: | 513.8 crore). EBITDA margins remained flat YoY at ~25.6% (Idirect estimate: 27.6%). Improvement in gross margins was largely offset by higher other expenditure. EBITDA grew 18.6% YoY to | 402.8 crore against I-direct estimate of | 446.1 crore. Net profit grew a mere 0.5% to | 166.8 crore (I-direct estimate: | 208 crore). Delta vis--vis EBITDA was due...

The company has strong fundamentals and we expect strong growth in its revenue on account of...

Biocon (BIOS) reported robust revenue growth of ~30% YoY at Rs1,465Cr (vs. estimate of Rs1,548Cr), aided by strong growth in biologics (up 96% YoY) and small molecule (up 20% YoY). Branded formulation (down 9% YoY) and Research service business (up 4% YoY) dragged the growth in Q1.

Revenues grew 30.4% YoY to | 1465.9 crore (I-direct estimate: | 1573.3 crore) mainly due to 96.0% YoY growth in biologics to | 490 crore (I-direct estimate: | 462.5 crore). EBITDA margins improved 868 bps YoY to 29.8% (I-direct estimate: 26.4%) mainly due to strong gross margin performance (71.0% vs. 61.4% in Q1FY19). EBITDA grew 83.9% YoY to | 437.5 crore against I-direct estimate of | 415.6 crore. Adjusted net profit grew 72.2% to...

Biocon has turned ex-bonus from June 12, 2019 pursuant to the announcement in the board meeting held on April 25, 2019. The board has recommended the issue of bonus shares in proportion of one bonus share (face value of | 5 each) for every equity share held. Consequently, the share price has changed to | 263 /share. We remain positive on the stock on the back of strong prospects in both biologics and services (Syngene) segments. We believe the correction in the stock is overdone and the stock offers a compelling bet at the current level. We maintain our BUY...

Biocon (BIOS) staged a strong performance in Q4, helped by robust growth in biologics business (up 87% YoY) and research services (up 30% YoY). BIOS reported stellar revenue growth of ~31% YoY at Rs1,529cr. Branded formulation segment witnessed softness in Q4

Well poised to capture global biosimilars opportunity The biologics segment (28% of FY19 in total revenues) includes biosimilars, encompassing Rh-insulin, insulin analogs, monoclonal antibodies & recombinant proteins. The company has invested heavily in this space in the last two to three years. The progress has been encouraging with approvals and launches in the US, EU, Japan, Australia and emerging markets. We...

ICICI Securities Ltd | Retail Equity Research Biocon's Q3FY19 numbers were a comprehensive beat vis--vis Idirect estimates on all fronts. Revenues grew 45.6% YoY to | 1540.8 crore (I-direct estimate: | 1382.4 crore) mainly due to 136.6% YoY growth in biologics to | 449 crore (I-direct estimate: | 379.6 crore) EBITDA margins improved 375 bps YoY to 24.7% (I-direct estimate: 26.2%) mainly due to improvement in product mix. EBITDA grew 71.7% YoY to | 380.7 crore against I-direct estimates of | 362.1 crore Adjusted net profit grew 131.6% to | 212.9 crore (I-direct estimate:...