Buy Biocon; target of Rs 527: Karvy

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Karvy's research report on BioconBiocon Ltd, started in 1978, is India’s largest biotech company under the leadership of Ms. Kiran Mazumdar Shaw. It operates across small molecule APIs concentrating on statins and immunosuppresants. It is developing biosimilar insulins, monoclonal antibodies (MAbs) and recombinant proteins. The company is the fourth largest insulin producer in the world. Biocon operates its branded formulations division in India in therapies of Metabolics, Oncology, Nephrology, comprehensive care and immunotherapy. Biocon also develops novel molecules through in-house and partnerships which are in varied stages of clinical studies and trials. Biocon also holds a controlling stake in Syngene which is into research services and has a few molecules in advanced stages of clinical trials. Biocon operates from its Bangalore facility which has a history of approvals from regulated market boards like US-Food and Drug Administration (FDA) and European Directorate for the Quality of Medicines (EDQM). The company has commercialized a facility in Malaysia to serve regulated markets biosimilars supplies. We have valued Biocon on the basis of standalone (Excluding-Syngene) adjusted for biosimilars R&D expense, biosimilars and Syngene. For the base business, we have arrived at a R&D adjusted EPS of Rs.22.2 for FY17E and valuing it at 13.6x FY17E EPS for a core-biopharma valuation of Rs.302. We are valuing the biosimilars portfolio at discount to the book value for Rs. 43 per share. Biocon’s holding in Syngene has been discounted to the market value for a value of Rs. 182 per Biocon share. We initiate coverage on Biocon with a “BUY” recommendation and target price of Rs. 527 an 19% upside to the current market price.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.

Read More