⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BIOCON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | BIOCON | Market Cap | 61,926 Cr. | Current Price | 382 ₹ | High / Low | 425 ₹ |
| Stock P/E | 318 | Book Value | 120 ₹ | Dividend Yield | 0.13 % | ROCE | 2.09 % |
| ROE | 0.40 % | Face Value | 5.00 ₹ | DMA 50 | 383 ₹ | DMA 200 | 372 ₹ |
| Chg in FII Hold | 0.53 % | Chg in DII Hold | 2.07 % | PAT Qtr | 111 Cr. | PAT Prev Qtr | 70.9 Cr. |
| RSI | 48.7 | MACD | 0.96 | Volume | 23,16,385 | Avg Vol 1Wk | 30,38,683 |
| Low price | 295 ₹ | High price | 425 ₹ | PEG Ratio | -17.1 | Debt to equity | 0.16 |
| 52w Index | 67.1 % | Qtr Profit Var | 3,183 % | EPS | 0.07 ₹ | Industry PE | 27.6 |
📊 Financials
- Revenue Growth: PAT improved from 70.9 Cr. to 111 Cr. (+3,183% YoY), but base remains small
- Profit Margins: Weak, EPS only 0.07 ₹ despite large market cap
- Debt Ratios: Debt-to-Equity 0.16, low leverage
- Cash Flows: Supported by biotech operations, but efficiency is poor
- Return Metrics: ROE 0.40%, ROCE 2.09% — very weak returns
💹 Valuation
- P/E Ratio: 318 (extremely high vs Industry PE 27.6)
- P/B Ratio: ~3.18 (reasonable, but valuation stretched due to earnings weakness)
- PEG Ratio: -17.1 (negative, indicates poor growth outlook)
- Intrinsic Value: Current price (382 ₹) near DMA 50 (383 ₹) & DMA 200 (372 ₹), showing consolidation
🏢 Business Model & Competitive Advantage
- Biopharmaceutical company with focus on generics, biosimilars, and research
- Strong R&D base and partnerships
- Competitive advantage in niche biotech segments
- Weak profitability metrics limit overall health
📈 Entry Zone Recommendation
- Entry Zone: 360–380 ₹ (near DMA support levels)
- Long-Term Holding: Suitable only for investors with high risk tolerance; valuations are risky given weak returns
✅ Positive
- Quarterly PAT growth (+3,183% YoY)
- DII holding increased (+2.07%)
- FII holding increased (+0.53%)
- Low debt-to-equity ratio (0.16)
⚠️ Limitation
- Extremely high P/E ratio (318)
- Weak ROE (0.40%) and ROCE (2.09%)
- Negative PEG ratio (-17.1), poor growth outlook
📉 Company Negative News
- Profitability remains weak despite revenue growth
- Valuation stretched far above industry average
📈 Company Positive News
- DII holding increased (+2.07%)
- FII holding increased (+0.53%)
- Quarterly PAT improved significantly
🏭 Industry
- Biotech and pharma industry supported by global demand
- Industry PE at 27.6, Biocon trades at a steep premium
🔎 Conclusion
Biocon is a biotech company with strong R&D and sectoral importance, but profitability metrics remain weak. Despite PAT growth, ROE and ROCE are very low, and valuations are extremely stretched with a P/E of 318. Entry around 360–380 ₹ may be considered for long-term investors betting on biotech expansion, but caution is advised due to poor efficiency and high valuation risk.