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Last Updated on: 19 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532523 | NSE: BIOCON

Fundamental Analysis of Biocon Ltd

Basic Stock Data

Last Updated: July 18, 2024, 11:18 pm

Market Cap 41,199 Cr.
Current Price 343
High / Low374/218
Stock P/E40.0
Book Value 165
Dividend Yield0.15 %
ROCE6.12 %
ROE5.47 %
Face Value 5.00
PEG Ratio4.04

Data Source: screener.in

Competitors of Biocon Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Cipla Ltd 1,21,588 Cr. 1,5071,582/1,02728.6 3310.86 %23.1 %17.0 % 2.00
Lyka Labs Ltd 421 Cr. 118144/97.9 20.60.00 %3.80 %6.32 % 10.0
Venus Remedies Ltd 513 Cr. 384430/22218.0 3650.00 %8.67 %6.01 % 10.0
Kilitch Drugs (India) Ltd 526 Cr. 328470/17538.8 1100.00 %13.5 %8.41 % 10.0
Panacea Biotec Ltd 831 Cr. 136202/112 1370.00 %3.60 %4.10 % 1.00
Industry Average16,724.85 Cr1,331.6647.28209.310.35%17.35%16.54%6.49

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: July 10, 2024, 3:42 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 3:42 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,0862,4852,8773,0903,3473,8914,1235,5146,3007,1438,18411,17414,612
Expenses1,5691,9422,1902,3942,9572,9123,2944,1214,7255,5626,3918,76211,354
Operating Profit5175436876963909808291,3941,5751,5811,7932,4123,258
OPM %25%22%24%23%12%25%20%25%25%22%22%22%22%
Other Income62255561586391732283402282607218966
Interest1282929266271655868419996
Depreciation1741792042212492773854485527158141,1131,526
Profit before tax3926105386247518506101,2151,1861,0689838971,703
Tax %14%16%20%15%19%19%26%17%27%21%22%28%
Net Profit3385134315286096884531,0038718467726431,489
EPS in Rs2.824.243.454.144.595.103.107.546.246.175.403.8510.00
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:18%
5 Years:22%
3 Years:27%
TTM:32%
Compounded Profit Growth
10 Years:10%
5 Years:7%
3 Years:12%
TTM:64%
Stock Price CAGR
10 Years:16%
5 Years:8%
3 Years:-5%
1 Year:33%
Return on Equity
10 Years:8%
5 Years:7%
3 Years:6%
Last Year:5%

Last Updated: July 17, 2024, 4:59 am

Balance Sheet

Last Updated: July 10, 2024, 3:42 pm

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

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 4715612113716406621,1551,2831,1601,1771,8522,954
Cash from Investing Activity -358-904-491-1,138-510-684-703-1,505-3,651-1,662-14,260-1,004
Cash from Financing Activity -94261861,068-178-240-2423882,56424213,049-2,333
Net Cash Flow10583-94300-47-26121016572-243641-383

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow517.00276.00-177.00695.00388.00978.00827.00-1.00-1.00-3.00-4.00-16.00

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

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

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters60.64%60.64%60.64%60.64%60.64%60.64%60.64%60.64%60.64%60.64%60.64%60.64%
FIIs15.91%15.74%16.00%15.62%16.31%15.79%14.42%10.20%9.52%7.97%6.55%5.63%
DIIs7.52%7.44%7.37%8.36%7.72%7.76%8.63%11.89%12.59%14.08%14.51%13.69%
Public15.02%15.46%15.34%14.76%14.60%15.17%15.74%16.70%16.77%16.92%17.96%19.74%
Others0.91%0.72%0.65%0.63%0.73%0.63%0.58%0.55%0.49%0.39%0.33%0.32%
No. of Shareholders3,38,8273,63,4473,64,5023,47,9113,41,0163,69,8163,91,3824,11,0864,12,4414,15,0464,34,3394,70,261

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Contra Fund16,770,7741.83463.713,114,1462024-07-18438.54%
Mirae Asset Large Cap Fund10,709,3890.79296.113,114,1462024-07-18243.89%
SBI Balanced Advantage Fund10,021,2050.99277.093,114,1462024-07-18221.8%
Quant Flexi Cap Fund5,611,0983.73155.153,114,1462024-07-1880.18%
Quant Mid Cap Fund4,100,0002.09113.373,114,1462024-07-1831.66%
Kotak Equity Arbitrage Fund - Regular Plan4,025,0000.28111.293,114,1462024-07-1829.25%
SBI Arbitrage Opportunities Fund3,397,5000.3493.943,114,1462024-07-189.1%
ICICI Prudential India Opportunities Fund3,114,1460.586.113,114,1462024-07-180%
Sundaram Mid Cap Fund3,080,0230.8385.163,114,1462024-07-18-1.1%
Sundaram Mid Cap Fund - Institutional Plan3,080,0230.8385.163,114,1462024-07-18-1.1%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)8.553.885.446.246.32
Diluted EPS (Rs.)8.543.875.426.196.30
Cash EPS (Rs.)24.5816.0214.9313.5911.86
Book Value[Excl.RevalReserv]/Share (Rs.)210.52187.3178.8770.0961.52
Book Value[Incl.RevalReserv]/Share (Rs.)210.52187.3178.8870.1061.53
Revenue From Operations / Share (Rs.)122.9093.0768.1759.2252.50
PBDIT / Share (Rs.)34.6824.0518.1815.8914.70
PBIT / Share (Rs.)21.6214.7811.409.9310.10
PBT / Share (Rs.)13.408.869.919.5610.12
Net Profit / Share (Rs.)11.516.758.157.637.26
NP After MI And SOA / Share (Rs.)8.523.855.406.176.24
PBDIT Margin (%)28.2225.8426.6726.8328.00
PBIT Margin (%)17.5815.8816.7216.7719.24
PBT Margin (%)10.909.5214.5416.1419.28
Net Profit Margin (%)9.367.2411.9512.8813.82
NP After MI And SOA Margin (%)6.924.147.9210.4211.87
Return on Networth / Equity (%)5.162.587.699.8311.15
Return on Capital Employeed (%)6.374.078.268.3211.61
Return On Assets (%)1.820.883.173.995.18
Long Term Debt / Equity (X)0.650.850.470.390.18
Total Debt / Equity (X)0.790.990.580.470.28
Asset Turnover Ratio (%)0.270.110.120.170.19
Current Ratio (X)0.981.452.191.811.33
Quick Ratio (X)0.660.951.591.360.97
Inventory Turnover Ratio (X)1.100.680.750.811.10
Dividend Payout Ratio (NP) (%)0.0012.960.000.008.42
Dividend Payout Ratio (CP) (%)0.003.800.000.004.84
Earning Retention Ratio (%)0.0087.040.000.0091.58
Cash Earning Retention Ratio (%)0.0096.200.000.0095.16
Interest Coverage Ratio (X)4.276.8932.2933.0527.19
Interest Coverage Ratio (Post Tax) (X)2.433.6317.1216.8213.82
Enterprise Value (Cr.)50669.8544766.8844360.0751477.1034040.50
EV / Net Operating Revenue (X)3.434.015.427.245.40
EV / EBITDA (X)12.1715.5020.3226.9919.29
MarketCap / Net Operating Revenue (X)2.152.224.916.905.15
Retention Ratios (%)0.0087.030.000.0091.57
Price / BV (X)1.601.394.766.514.84
Price / Net Operating Revenue (X)2.152.224.916.905.15
EarningsYield0.030.010.010.010.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 361.56

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.

Undervalued: 5.41% compared to the current price 343

Intrinsic Value: 397.32

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • 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.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

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

Undervalued: 15.84% compared to the current price 343

Last 5 Year EPS CAGR: 9.89%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (7,121.58 cr) compared to borrowings (4,862.75 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: 9.36%
      • 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: 6.37% (Industry Average ROCE: %)
      • 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%: 5.16% (Industry Average ROE: %)
      • 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): 2.43
      • 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: 0.66
      • 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: 40.0 (Industry average Stock P/E: )
      • 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: 0.79
      • 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

FAQ

What is the latest fair value of Biocon Ltd?

The latest fair value of Biocon Ltd is ₹361.56.

What is the Market Cap of Biocon Ltd?

The Market Cap of Biocon Ltd is 41,199 Cr..

What is the current Stock Price of Biocon Ltd as on 19 July 2024?

The current stock price of Biocon Ltd as on 19 July 2024 is 343.

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

In FY 2024, the High / Low of Biocon Ltd stocks is 374/218.

What is the Stock P/E of Biocon Ltd?

The Stock P/E of Biocon Ltd is 40.0.

What is the Book Value of Biocon Ltd?

The Book Value of Biocon Ltd is 165.

What is the Dividend Yield of Biocon Ltd?

The Dividend Yield of Biocon Ltd is 0.15 %.

What is the ROCE of Biocon Ltd?

The ROCE of Biocon Ltd is 6.12 %.

What is the ROE of Biocon Ltd?

The ROE of Biocon Ltd is 5.47 %.

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