BIOCON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | BIOCON | Market Cap | 58,296 Cr. | Current Price | 360 ₹ | High / Low | 425 ₹ |
| Stock P/E | 299 | Book Value | 120 ₹ | Dividend Yield | 0.14 % | ROCE | 2.09 % |
| ROE | 0.40 % | Face Value | 5.00 ₹ | DMA 50 | 366 ₹ | DMA 200 | 369 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 2.34 % | PAT Qtr | 111 Cr. | PAT Prev Qtr | 70.9 Cr. |
| RSI | 48.7 | MACD | -2.49 | Volume | 20,72,398 | Avg Vol 1Wk | 30,16,403 |
| Low price | 318 ₹ | High price | 425 ₹ | PEG Ratio | -16.1 | Debt to equity | 0.16 |
| 52w Index | 39.1 % | Qtr Profit Var | 3,183 % | EPS | 0.07 ₹ | Industry PE | 30.1 |
📊 Biocon Ltd (BIOCON) shows weak fundamentals despite recent profit recovery. ROCE at 2.09% and ROE at 0.40% highlight poor capital efficiency. Debt-to-equity at 0.16 is manageable, but cash flows remain under pressure. Valuations are extremely stretched with a P/E of 299 vs industry average of 30.1, while PEG ratio of -16.1 indicates misalignment with growth. EPS of 0.07 ₹ is very low relative to market cap, limiting intrinsic value comfort. Quarterly PAT rose sharply (111 Cr. vs 70.9 Cr.), but sustainability remains questionable. Dividend yield of 0.14% is negligible, offering little investor support.
💡 Entry Zone: 310–330 ₹ (near recent lows and below DMA 200).
📈 Long-Term Holding Guidance: Risky for long-term investors due to poor efficiency and stretched valuations. Suitable only for short- to medium-term momentum trades; avoid heavy accumulation until ROE/ROCE improve significantly.
✅ Positive
- Quarterly PAT growth (+3,183% YoY) shows strong rebound.
- DII holdings increased (+2.34%), reflecting domestic institutional confidence.
- FII holdings increased slightly (+0.13%), showing foreign investor interest.
⚠️ Limitation
- Extremely high P/E (299) vs industry average (30.1).
- Very weak ROCE (2.09%) and ROE (0.40%).
- Negative PEG ratio (-16.1) suggests misalignment with growth.
- Dividend yield (0.14%) is negligible.
- EPS (0.07 ₹) is very weak despite profit growth.
📉 Company Negative News
- Fundamentals remain weak despite profit recovery.
- MACD (-2.49) indicates weak short-term momentum.
- Stock trading flat near DMA 50 and 200, showing indecision.
📈 Company Positive News
- Quarterly profit growth of 3,183% YoY shows strong rebound.
- DII holdings increased significantly (+2.34%), showing domestic confidence.
🏭 Industry
- Biopharma sector has long-term growth potential but faces regulatory and competitive challenges.
- Industry P/E (30.1) is much lower, highlighting Biocon’s stretched valuation.
- Global demand for biosimilars and biologics supports sector growth.
🔎 Conclusion
⚖️ Biocon is currently driven by momentum rather than fundamentals. With very low ROE/ROCE and extremely high valuations, it is not an ideal candidate for long-term investment. Entry is favorable around 310–330 ₹, while current holders should consider short- to medium-term profit booking near 400–420 ₹. Long-term accumulation is risky unless efficiency metrics and EPS improve significantly.