Shares of Biocon fell nearly 3 percent during early trades on November 13, after the Pharma major posted a nearly double net profit for Q2FY24 year-on-year.
Nonetheless, at 9:30 am, the stock was trading lower at Rs 228.45 on profit booking. The results were announced in the post-market hours on November 10. At the close of Sunday's (November 12) Muhurat trading, Biocon stock was at Rs 235.35, around 3.50 percent higher.
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In a regulatory filing, Biocon reported a net profit of Rs 172.7 crore in the quarter ending September 2023, up from Rs 81.8 crore recorded in the same period last year. Revenue for the same period also grew to Rs 3462.3 crore, up by 49.2 percent year-on-year. The earnings before interest, taxes, depreciation and amortization (EBITDA) was Rs 741 crore for the September 2023 quarter, up from Rs 471 crore in the year-ago period. The EBITDA margin was at 21.4 percent against 20.3 percent in the previous fiscal.
Also read: Biocon Q2 results: Net profit more than doubles to Rs 172.7 crore
Analysts at Motilal Oswal have reiterated their neutral call with a target price of Rs 220 as the financial results missed their estimates. According to the analysts, "While the traction in the biologics business has been improving from commercialized products, the increased pricing pressure in generics and higher operating cost led gradual improvement in profitability."
The report added that the biosimilar outlook is getting dulled due to the time required to resolve regulatory issues at the Malaysia and Bengaluru sites.
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