Citigroup has buy on Biocon, target price Rs 360

Citigroup has a buy rating on Biocon in the long term with a target price of Rs 360. The stock ended down 7.6% at Rs 273.80 on Thursday while the BSE Sensex closed 2919.26 points down (-8.18%) at 32,778.14.

Company Financials

For the quarter ended 31-12-2019, the company has reported consolidated sales of Rs 1748.10 crore, up 11.19 % from last quarter sales of Rs 1572.20 crore and up 13.45 % from last year same quarter sales of Rs 1540.80 crore. The company has reported net profit after tax of Rs 233.50 crore in the latest quarter.


Investment Rationale

Biocon is the best Indian play on the global biosimilars opportunity, said Citigroup. With two products commercialised in the US and easing of capacity constraints, Citi expects meaningful pickup in earnings momentum of Biocon going forward. With two more potential launches over the next four to six quarters, Citi believes comfort on sustainability of earnings should also pick up further.