Motilal Oswal 's research report on Biocon
Biocon (BIOS) has shown healthy improvement in Biosimilars revenue on a YoY as well as QoQ basis. The favorable demand scenario has led to better off-take of products in the Generics category. Capital investment and product development are on track for the Generics segment, additional growth levers for BIOS. -We maintain our EPS estimates for FY21/FY22 and value BIOS at 30x (20% discount to its five-year avg.), arriving at TP of INR450. BIOS is well-placed to deliver a 39% earnings CAGR over FY20–22, led by new launches / increased market share for existing products in the Biologics segment and superior performance from the Generics / Research Services segment.
However, we await a better entry point and hence maintain a Neutral rating on the stock.
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