Hold Biocon, target price Rs 410: ICICI Direct

ICICI Direct has hold call on Biocon with a target price of Rs 410. The current market price of Biocon Ltd. is Rs 368.1.
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 45310.64 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 30-06-2021, the company reported a Consolidated Total Income of Rs 1807.80 Crore, down -11.56 % from last quarter Total Income of Rs 2044.10 Crore and up 7.00 % from last year same quarter Total Income of Rs 1689.60 Crore. Company reported net profit after tax of Rs 164.50 Crore in latest quarter.

Investment Rationale
Biocon’s share price has grown by ~2.3x over the past five years (from ~Rs 152 in August 2016 to ~Rs 358 levels in August 2021). The sheer size of the deal notwithstanding, the direction on the pricing front and actual ramp-up would be the key determinants, as the brokerage still awaits further clarifications in the due course.

Promoter/FII Holdings
Promoters held 60.67 per cent stake in the company as of March 31, 2021, while FIIs held 14.98 per cent, DIIs 7.32 and public and others 17.03 per cent.