Buy Biocon, target price Rs 460: Geojit

Geojit has buy call on Biocon Ltd. with a target price of Rs 460. The current market price of Biocon is Rs 406.3.
Time period given by analyst is one year when Biocon Ltd. price can reach defined target.

Biocon Ltd., incorporated in the year 1978, is a Large Cap company (having a market cap of Rs 48780.38 Crore) operating in Pharmaceuticals sector.


Biocon Ltd. key Products/Revenue Segments include Bio Pharmaceuticals, Other Operating Revenue, Waste and Sale of services for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 2222.50 Crore, up 14.25 % from last quarter Total Income of Rs 1945.30 Crore and up 18.29 % from last year same quarter Total Income of Rs 1878.90 Crore. Company reported net profit after tax of Rs 266.80 Crore in latest quarter.

Investment Rationale
Entry into the vaccine space, successful product launches, strong demand and focus shifting towards commercializing should support long-term growth prospects for the company. The brokerage believes that the company will end this fiscal year on a strong growth trajectory, and it expects earnings to grow at 32.8% CAGR over FY21-24E. Hence, it reiterates BUY rating on the stock with a rolled forward target price of Rs. 460 based on 29.5x FY24E adj. EPS.

Promoter/FII Holdings
Promoters held 60.64 per cent stake in the company as of 31-Dec-2021, while FIIs owned 16.52 per cent, DIIs 6.85 per cent.