Buy Biocon; target of Rs 266: Sharekhan

Sharekhan's research report on Biocon

Biocon registered strong operating performance in Q3, with revenue growing in strong double digits Revenue grew by 35% y-o-y to Rs. 2,941 crore, driven by strong 54% y-o-y growth in the biologics segment, 23% y-o-y growth in research services (Syngene), and 18.2% y-o-y growth in the generic segment. Consolidation of Viatris’ biosimilar business will add to the growth of Biocon Biosimilars in Q4FY2023; and going forward, it will immensely help in overall revenue growth and expansion in profitability.

Outlook

The stock is currently trading at reasonably attractive levels of 29.7x/16.9x its FY2024/FY2025E revised earnings. Hence, we maintain Buy with a revised PT of Rs. 266.