January 27, 2017 / 17:22 IST
Motilal Oswal's research report on Biocon Biologics grew strongly by 60% YoY, led by ramp-up of Glargine, Trastuzumab and Insulin franchise in emerging markets. Syngene (31% of revenue) grew 17% YoY, driven by robust growth within its dedicated research centers and Discovery Services. Small molecules business grew 24% YoY on ramp-up in statins business.
Outlook
The recent run-up in the stock price is primarily on the back of positive developments in the Biosimilars portfolio. Although the progress is impressive, we believe there are still uncertainties that cap the upside potential. In the near term, commissioning of the Malaysia plant would exert pressure on profits. We maintain Sell with a revised TP of INR800 @ 20x 1H FY19E EPS (v/s INR 750 @ 22x FY18E EPS).
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