Hold Biocon; target of Rs 544: ICICIDirect

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26 Aug, 2025 12:21

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ICICIDirect's research report on BioconRevenues grew 16.9% YoY to | 978.8 crore (I-direct estimate: | 860.5 crore) mainly due to 32.8% growth in the research segment (Syngene) to | 316 crore (I-direct estimate: | 298.9 crore). Due to biosimilar launches in emerging markets, biopharma segment grew 8.6% YoY to | 531 crore (I-direct estimate: | 430.3 crore) EBITDA margins declined 31 bps YoY to 21.8% (I-direct estimate: 22.9%) mainly due to higher R&D expenses. EBITDA grew 15.3% YoY to | 213.3 crore, (I-direct estimate: | 197.1 crore) Adjusted net profit declined 54% to | 92.5 crore (I-direct estimate: | 102.5 crore) on account of higher taxation. Syngene continues to maintain growth momentum. However, the positive surprise was biopharma growth on the back of biosimilar launches in emerging markets. This, along with the Japanese Glargine approval and proposed filing in other markets bodes well for the future as the company expects higher contribution from biosimilars, going forward. On the other hand, prolonged restructuring, pricing pressure and capacity constraints continue to impact small molecules growth. Given the different fortunes for different segments we continue to adopt SOTP methodology for valuation. Our SOTP target price is | 545. 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.

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