I-Sec maintains Sell on Biocon, revises target price to Rs 270

ICICI Securities has maintained Sell call on Biocon with a revised target price of Rs 270 (Rs 260 earlier). The current market price of Biocon is Rs 334.4. Biocon. incorporated in 1978, is a Large Cap company with a market cap of Rs 40112.05 crore, operating in Pharmaceuticals sector.

Biocon's key products/revenue segments include Bio Pharmaceuticals, Other Operating Revenue, Waste and Sale of services for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 4453.90 crore, up 15.50% from last quarter Total Income of Rs 3856.20 crore and up 12.31% from last year same quarter Total Income of Rs 3965.70 crore. The company has reported net profit after tax of Rs 459.40 crore in the latest quarter.

The company's top management includes Ms.Kiran Mazumdar Shaw, Mr.Nicholas Robert Haggar, Ms.Rekha Mehrotra Menon, Mr.Naina Lal Kidwai, Mr.Bobby Kanubhai Parikh, Mr.Meleveetil Damodaran, Mr.Eric Vivek Mazumdar, Prof.Ravi Rasendra Mazumdar, Mr.Siddharth Mittal, Mr.Atul Dhawan. The company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 120 crore shares outstanding.

Investment Rationale
ICICI Securities expects Biocon to witness an earnings CAGR of 91.6% over FY25-27E driven by a revenue CAGR of 16.9%. EBITDA margin is likely to remain between 21-23% in FY26-27E with curbs in biosimilars margin and India business divestment. The brokerage cut its EBITDA estimates by ~1% for FY27E due to concerns over margins. The stock currently trades at 16.3x FY26E and 12.1x FY27E EV/EBITDA. I-Sec retains SELL on Biocon with an SoTP-based revised taret price of Rs 270 (earlier Rs 260). Key upside risks are healthy launches in biosimilars and generics segments; and early recovery in biologics margin.

Promoter/FII Holdings
Promoters held 60.64 per cent stake in the company as of 31-Mar-2025, while FIIs owned 5.67 per cent, DIIs 15.72 per cent.