Estimating The Intrinsic Value Of Biocon Limited (NSE:BIOCON)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Biocon Limited...
Indian (NIFTY) Biotech Industry Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies8
- 7D-0.9%
- 3M5.3%
- 1Y-12.1%
- YTD-18.8%
Over the last 7 days, the Biotech industry has remained flat, although notably Panacea Biotec gained 11%. Unfortunately though, the industry is down 12% over the past 12 months.
Industry Valuation and Performance
Has the Indian Biotech Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 28 Nov 2021 | ₹466.4b | ₹76.2b | ₹6.9b | 56x |
| Tue, 26 Oct 2021 | ₹405.5b | ₹76.1b | ₹6.8b | 50.7x |
| Thu, 23 Sep 2021 | ₹464.6b | ₹75.2b | ₹7.1b | 63.8x |
| Sat, 21 Aug 2021 | ₹450.5b | ₹75.2b | ₹7.1b | 62x |
| Sat, 05 Jun 2021 | ₹489.3b | ₹74.3b | ₹7.6b | 64.6x |
| Tue, 09 Mar 2021 | ₹483.4b | ₹72.0b | ₹6.1b | 76.2x |
| Mon, 30 Nov 2020 | ₹528.0b | ₹70.7b | ₹6.5b | 50.2x |
| Thu, 03 Sep 2020 | ₹473.2b | ₹74.2b | ₹5.1b | 45.5x |
| Sun, 07 Jun 2020 | ₹440.6b | ₹71.3b | ₹6.1b | 23.2x |
| Sat, 29 Feb 2020 | ₹360.6b | ₹72.0b | ₹9.3b | 31.6x |
| Tue, 03 Dec 2019 | ₹356.4b | ₹69.0b | ₹9.5b | 32.7x |
| Fri, 06 Sep 2019 | ₹302.7b | ₹66.4b | ₹10.7b | 28.1x |
| Mon, 10 Jun 2019 | ₹348.4b | ₹62.6b | ₹9.7b | 31.5x |
| Sun, 03 Mar 2019 | ₹392.7b | ₹59.4b | ₹7.6b | 43.7x |
| Wed, 05 Dec 2018 | ₹391.7b | ₹54.5b | ₹6.3b | 46.9x |
PE Ratio
46.9x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 56.0x which is higher than its 3-year average PE of 45.0x. It appears they are confident that earnings will grow faster in the future than they have historically.
Past Earnings Growth: The earnings for companies in the Biotechs industry have grown 3.0% per year over the last three years, and revenues for these companies have grown 12% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Indian Biotech industry?
| Biotech | -0.95% | |
Industry PE: Investors are most optimistic about the Biotech industry which is trading above its 3-year average PE ratio of 45.0x. This is likely because analysts are expecting annual earnings growth of 43%, which is higher than its past year's earnings growth of 31% per year.
Forecasted Growth: Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 43% over the next 5 years. This is better than it's past earnings growth rate of 31% per year.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| 531349 Panacea Biotec | 11.4%+₹1.3b | 0.6% | PS1.8x | |
| 590057 Equippp Social Impact Technologies | 4.4%+₹427.8m | 1,439.8% | PE84x | |
| 532039 Zenotech Laboratories | 6.1%+₹149.5m | 39.3% | PE46x | |
| 526139 Transgene Biotek | 8.4%+₹24.2m | -15.0% | PS182.7x | |
| 532041 Hindustan Bio Sciences | 5.7%+₹2.3m | 55.1% | PS10.5x |