Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 14 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532523 | NSE: BIOCON

Fundamental Analysis of Biocon Ltd

Basic Stock Data

Last Updated: April 6, 2024, 1:10 am

Market Cap 32,710 Cr.
Current Price 272
High / Low307/212
Stock P/E27.3
Book Value 158
Dividend Yield0.56 %
ROCE5.92 %
ROE4.78 %
Face Value 5.00

Data Source: screener.in

Competitors of Biocon Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Brawn Biotech Ltd 5.25 Cr. 17.526.8/14.4 19.00.00 %5.91 %12.9 % 10.0
Solara Active Pharma Sciences Ltd 1,480 Cr. 411507/286 4070.00 %1.80 %1.44 % 10.0
BDH Industries Ltd 177 Cr. 308372/12220.1 98.21.30 %20.4 %15.9 % 10.0
Ipca Laboratories Ltd 33,971 Cr. 1,3391,348/67066.2 2420.30 %11.2 %8.04 % 1.00
Aarti Pharmalabs Ltd 4,075 Cr. 450595/32021.0 1830.44 %16.1 %13.2 % 5.00
Industry Average7,941.65 Cr505.1021.46189.840.41%11.08%10.30%7.20

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,8571,8421,7611,8402,1742,4092,1402,3202,9413,7743,4233,4623,954
Expenses1,4591,4761,4271,4451,7331,8701,7831,8772,3522,8172,7412,7453,051
Operating Profit399366333395441539356442589957681717903
OPM %21%20%19%21%20%22%17%19%20%25%20%21%23%
Other Income28218473548267848-19315294134587
Interest534202215102030120249233248267
Depreciation186184195202206212218231301364358389414
Profit before tax236366166206269342197229-26497184214808
Tax %21%19%35%22%18%17%15%64%19%17%19%19%7%
Net Profit18729610816022028416782-21414149173753
EPS in Rs1.402.110.701.151.561.991.200.39-0.352.610.841.055.50

Last Updated: April 4, 2024, 1:22 pm

Quarterly Chart

Biocon Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,0862,4852,8773,0903,3473,8914,1235,5146,3007,1438,18411,17413,600
Expenses1,5691,9422,1902,3942,9572,9123,2944,1214,7255,5626,3918,76210,655
Operating Profit5175436876963909808291,3941,5751,5811,7932,4122,945
OPM %25%22%24%23%12%25%20%25%25%22%22%22%22%
Other Income62255561586391732283402282607218186
Interest1282929266271655868419850
Depreciation1741792042212492773854485527158141,1131,412
Profit before tax3926105386247518506101,2151,1861,068983897869
Tax %14%16%20%15%19%19%26%17%27%21%22%28%
Net Profit3385134315286096884531,003871846772643715
EPS in Rs2.824.243.454.144.595.103.107.546.246.175.403.854.15
Dividend Payout %30%29%24%20%18%10%16%7%0%0%9%39%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)51.78%-15.98%22.51%15.34%12.97%-34.16%121.41%-13.16%-2.87%-8.75%-16.71%
Change in YoY Net Profit Growth (%)0.00%-67.76%38.49%-7.16%-2.37%-47.13%155.57%-134.57%10.29%-5.88%-7.96%

Growth

Compounded Sales Growth
10 Years:16%
5 Years:22%
3 Years:21%
TTM:49%
Compounded Profit Growth
10 Years:6%
5 Years:13%
3 Years:-3%
TTM:83%
Stock Price CAGR
10 Years:14%
5 Years:-3%
3 Years:-14%
1 Year:26%
Return on Equity
10 Years:10%
5 Years:9%
3 Years:7%
Last Year:5%

Biocon Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital100100100100100100300300600600600600600
Reserves2,1722,5952,9273,1713,9344,7384,8815,7986,1067,0277,83217,26718,382
Borrowings2712678641,1172,4782,3022,2642,4222,7154,4815,14718,01918,252
Other Liabilities1,4021,4541,8601,9881,9472,2542,5453,6724,9936,3826,76315,85617,342
Total Liabilities3,9454,4165,7516,3758,4589,3949,99012,19214,41418,49020,34251,74254,577
Fixed Assets1,2701,5101,5251,6301,7483,6263,7004,4715,9716,3646,56929,46834,634
CWIP3903121,2061,6772,2408391,3031,8992,1962,8004,1107,3173,260
Investments5565877652309021,2536751,0129661,9521,5882,0692,040
Other Assets1,7292,0072,2552,8393,5693,6764,3124,8115,2817,3748,07412,88814,642
Total Assets3,9454,4165,7516,3758,4589,3949,99012,19214,41418,49020,34251,74254,577

Reserves and Borrowings Chart

Biocon Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 5944715612113716406621,1551,2831,1601,1771,852
Cash from Investing Activity -398-358-904-491-1,138-510-684-703-1,505-3,651-1,662-14,260
Cash from Financing Activity -186-94261861,068-178-240-2423882,56424213,049
Net Cash Flow1010583-94300-47-26121016572-243641

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow246.00276.00-177.00695.00388.00978.00827.00-1.00-1.00-3.00-4.00-16.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Biocon Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days8675769178839486717792117
Inventory Days162139116132153160161199263304309423
Days Payable149121107125172187224231243246216397
Cash Conversion Cycle999385985957315391134184143
Working Capital Days2721-0123134181588011285
ROCE %16%15%15%12%9%12%8%13%12%10%9%6%

Financial Efficiency Indicators Chart

Biocon Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters60.67%60.67%60.64%60.64%60.64%60.64%60.64%60.64%60.64%60.64%60.64%60.64%
FIIs17.65%16.30%15.91%15.74%16.00%15.62%16.31%15.79%14.42%10.20%9.52%7.97%
DIIs6.03%7.14%7.52%7.44%7.37%8.36%7.72%7.76%8.63%11.89%12.59%14.08%
Public14.67%14.96%15.02%15.46%15.34%14.76%14.60%15.17%15.74%16.70%16.77%16.92%
Others0.98%0.93%0.91%0.72%0.65%0.63%0.73%0.63%0.58%0.55%0.49%0.39%
No. of Shareholders2,64,4893,11,3493,38,8273,63,4473,64,5023,47,9113,41,0163,69,8163,91,3824,11,0864,12,4414,15,046

Shareholding Pattern Chart

No. of Shareholders

Biocon Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Mirae Asset Large Cap Fund120946960.92329.22
SBI Contra Fund105924681.76288.33
Mirae Asset Midcap Fund51017431.14138.87
Aditya Birla Sun Life ELSS Tax Relief 9650405630.97137.2
SBI Balanced Advantage Fund50212050.55136.68
ICICI Prudential India Opportunities Fund46170551.02125.68
UTI Mid Cap Fund34210471.0493.12
Sundaram Mid Cap Fund30000000.9381.66
Sundaram Mid Cap Fund - Institutional Plan30000000.9381.66
Kotak Equity Arbitrage Fund - Regular Plan29850000.381.25

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)3.885.446.246.327.65
Diluted EPS (Rs.)3.875.426.196.307.60
Cash EPS (Rs.)16.0214.9313.5911.8624.16
Book Value[Excl.RevalReserv]/Share (Rs.)187.3178.8770.0961.52111.77
Book Value[Incl.RevalReserv]/Share (Rs.)187.3178.8870.1061.53111.78
Revenue From Operations / Share (Rs.)93.0768.1759.2252.5091.91
PBDIT / Share (Rs.)24.0518.1815.8914.7025.64
PBIT / Share (Rs.)14.7811.409.9310.1018.17
PBT / Share (Rs.)8.869.919.5610.1220.23
Net Profit / Share (Rs.)6.758.157.637.2616.70
NP After MI And SOA / Share (Rs.)3.855.406.176.2415.09
PBDIT Margin (%)25.8426.6726.8328.0027.89
PBIT Margin (%)15.8816.7216.7719.2419.77
PBT Margin (%)9.5214.5416.1419.2822.01
Net Profit Margin (%)7.2411.9512.8813.8218.16
NP After MI And SOA Margin (%)4.147.9210.4211.8716.41
Return on Networth / Equity (%)2.587.699.8311.1514.84
Return on Capital Employeed (%)4.078.268.3211.6111.91
Return On Assets (%)0.883.173.995.187.42
Long Term Debt / Equity (X)0.850.470.390.180.25
Total Debt / Equity (X)0.990.580.470.280.29
Asset Turnover Ratio (%)0.110.120.170.190.31
Current Ratio (X)1.452.191.811.331.61
Quick Ratio (X)0.951.591.360.971.27
Inventory Turnover Ratio (X)0.680.750.811.101.68
Dividend Payout Ratio (NP) (%)12.960.000.008.427.97
Dividend Payout Ratio (CP) (%)3.800.000.004.845.33
Earning Retention Ratio (%)87.040.000.0091.5892.03
Cash Earning Retention Ratio (%)96.200.000.0095.1694.67
Interest Coverage Ratio (X)6.8932.2933.0527.1921.69
Interest Coverage Ratio (Post Tax) (X)3.6317.1216.8213.8212.38
Enterprise Value (Cr.)44766.8844360.0751477.1034040.5037998.50
EV / Net Operating Revenue (X)4.015.427.245.406.89
EV / EBITDA (X)15.5020.3226.9919.2924.70
MarketCap / Net Operating Revenue (X)2.224.916.905.156.65
Retention Ratios (%)87.030.000.0091.5792.02
Price / BV (X)1.394.766.514.846.01
Price / Net Operating Revenue (X)2.224.916.905.156.65
EarningsYield0.010.010.010.020.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 207.34

The stock is overvalued by 23.77% compared to the current price ₹272

Calculation basis:

  • Fair value = (P/E Ratio * (Return on Equity / 100) * Book Value) * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (6,679.23 cr) compared to borrowings (4,661.46 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (5.38 cr) and profit (481.46 cr) over the years.
  1. The stock has a low average ROCE of 11.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 36.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 93.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Biocon Ltd:
    1. Net Profit Margin: 7.24%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 4.07% (Industry Average ROCE: 20.02%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 2.58% (Industry Average ROE: 16.37%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.63
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.95
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 27.3 (Industry average Stock P/E: 43.5)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.99
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating: ★★★︎☆☆

About the Company - Qualitative Analysis

Biocon Ltd. is a Public Limited Listed company incorporated on 29/11/1978 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L24234KA1978PLC003417 and registration number is 003417. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 1738.20 Cr. and Equity Capital is Rs. 600.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Pharmaceuticals20th K.M. Hosur Road, Bengaluru Karnataka 560100investor.relations@biocon.com
http://www.biocon.com
Management
NamePosition Held
Ms. Kiran Mazumdar ShawExecutive Chairperson
Mr. Siddharth MittalManaging Director & CEO
Prof. Ravi Rasendra MazumdarNon Exe.Non Ind.Director
Mr. Eric Vivek MazumdarNon Exe.Non Ind.Director
Mr. Meleveetil DamodaranLead Independent Director
Dr. Vijay Kumar KuchrooIndependent Director
Mr. Bobby Kanubhai ParikhIndependent Director
Mr. Peter John BainsIndependent Director
Mr. Naina Lal KidwaiIndependent Director

Biocon Ltd. Share Price Update

Share PriceValue
Today₹274.30
Previous Day₹278.50

FAQ

What is the latest fair value of Biocon Ltd?

The latest fair value of Biocon Ltd is ₹207.34.

What is the Market Cap of Biocon Ltd?

The Market Cap of Biocon Ltd is 32,710 Cr..

What is the current Stock Price of Biocon Ltd as on 07 April 2024?

The current stock price of Biocon Ltd as on 07 April 2024 is 272.

What is the High / Low of Biocon Ltd stocks in FY 2024?

In FY 2024, the High / Low of Biocon Ltd stocks is ₹307/212.

What is the Stock P/E of Biocon Ltd?

The Stock P/E of Biocon Ltd is 27.3.

What is the Book Value of Biocon Ltd?

The Book Value of Biocon Ltd is 158.

What is the Dividend Yield of Biocon Ltd?

The Dividend Yield of Biocon Ltd is 0.56 %.

What is the ROCE of Biocon Ltd?

The ROCE of Biocon Ltd is 5.92 %.

What is the ROE of Biocon Ltd?

The ROE of Biocon Ltd is 4.78 %.

What is the Face Value of Biocon Ltd?

The Face Value of Biocon Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Biocon Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE