Biocon share price falls 2% after CLSA retains sell on stock
CLSA has retained sell on the stock and has cut target to Rs 240 from Rs 260 per share
January 25, 2021 / 10:02 AM IST
Biocon share price was trading lower by over 2 percent in the morning session on January 25 after CLSA maintained sell rating on the stock.
The global research firm has retained sell on the stock and has cut target to Rs 240 from Rs 260 per share. It is of the view that Q3 profit was sharply lower than estimates adding that generics business was impacted by higher inventory, according to a CNBC-TV18 report.
CLSA believes that COVID-19 disruptions led to modest growth for the biologics segment. Traction in biologics was weak for a fifth consecutive quarter adding that market share gains in biologics will only be gradual.
The brokerage firm has lowered its FY21-23 EPS estimates by 8-12 percent.
The stock was trading at Rs 382.95, down Rs 10.85, or 2.76 percent at 09:39 hours. It has touched an intraday high of Rs 393.20 and an intraday low of Rs 377.95.
The pharma major reported 18 percent fall in consolidated net profit YoY at Rs 186.6 crore for the third quarter of FY21. Biocon's consolidated revenue for Q3 of FY21 increased by 7.20 percent at Rs 1878.9 crore as against Rs 1752.6 crore for the said quarter last year.
The generics business reported a 3 percent dip in the third quarter at Rs 561 crore, as against Rs 576 crore in the corresponding period last year.
"2020 has been one of the most challenging years for the world with an unprecedented pandemic impact on the global economy. We continue to face headwinds across operational, regulatory and commercial functions which have been deterrents to our planned market expansion. However, we expect normalization by next fiscal," said Biocon's executive chairperson Kiran Mazumdar-Shaw.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.