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.
Outlook
However, we await a better entry point and hence maintain a Neutral rating on the stock.
For all recommendations report, 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
