NSEI:BIOCON

Stock Analysis Report

Executive Summary

Biocon Limited, a biopharmaceutical company, develops, manufactures, and sells active pharmaceutical ingredients and formulations for diabetes, oncology, and autoimmune diseases.

Snowflake

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Biocon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BIOCON has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

BIOCON

-1.4%

IN Biotechs

-0.4%

IN Market


1 Year Return

-15.6%

BIOCON

-16.1%

IN Biotechs

3.5%

IN Market

Return vs Industry: BIOCON matched the Indian Biotechs industry which returned -16.1% over the past year.

Return vs Market: BIOCON underperformed the Indian Market which returned 3.5% over the past year.


Shareholder returns

BIOCONIndustryMarket
7 Day-1.9%-1.4%-0.4%
30 Day-0.3%-0.1%1.6%
90 Day15.7%17.4%8.0%
1 Year-15.4%-15.6%-15.9%-16.1%5.5%3.5%
3 Year84.2%83.1%81.5%80.3%39.1%32.1%
5 Year244.5%235.3%219.1%211.3%38.8%26.3%

Price Volatility Vs. Market

How volatile is Biocon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Biocon undervalued compared to its fair value and its price relative to the market?

35.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BIOCON (₹258.55) is trading above our estimate of fair value (₹143.55)

Significantly Below Fair Value: BIOCON is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BIOCON is poor value based on its PE Ratio (35.9x) compared to the Biotechs industry average (32.7x).

PE vs Market: BIOCON is poor value based on its PE Ratio (35.9x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: BIOCON is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: BIOCON is overvalued based on its PB Ratio (4.8x) compared to the IN Biotechs industry average (1.8x).


Next Steps

Future Growth

How is Biocon forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

27.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIOCON's forecast earnings growth (27.5% per year) is above the savings rate (7.6%).

Earnings vs Market: BIOCON's earnings (27.5% per year) are forecast to grow faster than the Indian market (18% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BIOCON's revenue (19.7% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: BIOCON's revenue (19.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BIOCON's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Biocon performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BIOCON has high quality earnings.

Growing Profit Margin: BIOCON's current net profit margins (14%) are lower than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: BIOCON's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: BIOCON's earnings growth over the past year (22.4%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: BIOCON earnings growth over the past year (22.4%) exceeded the Biotechs industry 9.5%.


Return on Equity

High ROE: BIOCON's Return on Equity (13.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Biocon's financial position?


Financial Position Analysis

Short Term Liabilities: BIOCON's short term assets (₹46.1B) exceeds its short term liabilities (₹33.6B)

Long Term Liabilities: BIOCON's short term assets (₹46.1B) exceeds its long term liabilities (27.5B)


Debt to Equity History and Analysis

Debt Level: BIOCON's debt to equity ratio (30.5%) is considered satisfactory.

Reducing Debt: BIOCON's debt to equity ratio has reduced from 36% to 30.5% over the past 5 years.

Debt Coverage: BIOCON's debt is well covered by operating cash flow (68%).

Interest Coverage: BIOCON earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BIOCON has a high level of physical assets or inventory.

Debt Coverage by Assets: BIOCON's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is Biocon's current dividend yield, its reliability and sustainability?

0.19%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: BIOCON's dividend (0.19%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: BIOCON's dividend (0.19%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).


Stability and Growth of Payments

Stable Dividend: BIOCON is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: BIOCON is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BIOCON is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BIOCON's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Biocon's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Arun Chandavarkar (58yo)

5.3yrs

Tenure

₹38,270,000

Compensation

Dr. Arun Suresh Chandavarkar, B.Tech., M.S., PhD(Chem Eng) has been Chief Executive Officer and Joint Managing Director of Biocon Limited since April 24, 2014 and Executive Director since July 25, 2014. Dr ...


CEO Compensation Analysis

Compensation vs Market: Arun's total compensation ($USD532.17K) is about average for companies of similar size in the Indian market ($USD731.06K).

Compensation vs Earnings: Arun's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: BIOCON's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

64yo

Average Age

Experienced Board: BIOCON's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

Insider Buying: BIOCON insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹2,669,99915 Nov 19
Veena Vasanth
EntityIndividual
Shares10,000
Max Price₹267.00
Sell₹2,638,00012 Nov 19
Veena Vasanth
EntityIndividual
Shares10,000
Max Price₹263.80
Sell₹5,196,03412 Nov 19
Amitava Saha
EntityIndividual
Role
Head of Human Resources
Head of Human Resources
Shares20,000
Max Price₹259.80
Sell₹2,524,40005 Nov 19
Hari Prasad
EntityIndividual
Shares10,000
Max Price₹252.44
Sell₹1,100,55031 Oct 19
Hari Prasad
EntityIndividual
Shares4,500
Max Price₹244.57
Sell₹4,463,22909 Oct 19
G. Kumar
EntityIndividual
Shares20,000
Max Price₹223.16
Sell₹1,320,45001 Oct 19
Hari Prasad
EntityIndividual
Shares5,800
Max Price₹227.66
Buy₹202,047,03027 Sep 19
Biocon Ltd., ESOP
EntityCompany
Shares926,386
Max Price₹218.10
Sell₹900,00026 Sep 19
Krishnasai Tanneeru
EntityIndividual
Shares4,000
Max Price₹225.00
Sell₹924,00023 Sep 19
Krishnasai Tanneeru
EntityIndividual
Shares4,000
Max Price₹231.00
Sell₹34,821,55313 Sep 19
Biocon Ltd., ESOP
EntityCompany
Shares446,150
Max Price₹78.05
Sell₹8,817,09710 Sep 19
G. Kumar
EntityIndividual
Shares39,564
Max Price₹225.00
Buy₹12,128,01826 Aug 19
Biocon Ltd., ESOP
EntityCompany
Shares56,200
Max Price₹215.80
Buy₹15,835,47821 Aug 19
Biocon Ltd., ESOP
EntityCompany
Shares73,614
Max Price₹215.12
Sell₹54,643,52319 Aug 19
Biocon Ltd., ESOP
EntityCompany
Shares731,400
Max Price₹74.71
Sell₹689,00031 May 19
Amitava Saha
EntityIndividual
Role
Head of Human Resources
Head of Human Resources
Shares2,500
Max Price₹275.60
Buy₹19,819,56323 May 19
Biocon Ltd., ESOP
EntityCompany
Shares76,000
Max Price₹260.78
Buy₹61,399,36428 Mar 19
Biocon Ltd., ESOP
EntityCompany
Shares200,000
Max Price₹307.00
Buy₹458,624,51325 Mar 19
Biocon Ltd., ESOP
EntityCompany
Shares1,500,000
Max Price₹305.75
Sell₹15,610,82022 Mar 19
Arshad Jamil
EntityIndividual
Shares49,500
Max Price₹315.37
Sell₹4,488,66120 Mar 19
G. Radhakrishnan
EntityIndividual
Shares14,162
Max Price₹318.00
Sell₹5,048,10720 Mar 19
Gopi Srinivasan
EntityIndividual
Shares16,000
Max Price₹315.51
Sell₹630,00020 Mar 19
V. Jaikanth
EntityIndividual
Shares2,000
Max Price₹315.00
Buy₹16,069,87615 Mar 19
Biocon Ltd., ESOP
EntityCompany
Shares52,262
Max Price₹307.49
Sell₹5,665,31812 Mar 19
Yogesh Chaube
EntityIndividual
Shares18,002
Max Price₹314.70
Buy₹153,665,10408 Mar 19
Biocon Ltd., ESOP
EntityCompany
Shares500,000
Max Price₹307.33
Sell₹6,274,99908 Mar 19
G. Radhakrishnan
EntityIndividual
Shares20,000
Max Price₹313.75
Buy₹4,593,56227 Feb 19
Biocon Ltd., ESOP
EntityCompany
Shares15,016
Max Price₹305.91
Sell₹617,04518 Feb 19
Chigurupati Rao
EntityIndividual
Shares2,000
Max Price₹308.52
Buy₹613,50018 Feb 19
Chigurupati Rao
EntityIndividual
Shares2,000
Max Price₹306.75
Sell₹1,515,75012 Feb 19
Veena Vasanth
EntityIndividual
Shares4,600
Max Price₹330.00
Sell₹8,809,21512 Feb 19
M. Elango
EntityIndividual
Shares26,800
Max Price₹328.87
Sell₹654,00007 Feb 19
Maneesh Ghildyal
EntityIndividual
Shares2,000
Max Price₹327.00
Sell₹1,629,49307 Feb 19
Partha Hazra
EntityIndividual
Shares5,000
Max Price₹326.25
Sell₹1,323,00507 Feb 19
Vasu Raghavan
EntityIndividual
Shares4,000
Max Price₹330.75
Sell₹1,989,76905 Feb 19
Palle Acharyulu
EntityIndividual
Shares6,000
Max Price₹331.63
Sell₹332,50005 Feb 19
K. Sivanandam
EntityIndividual
Shares1,000
Max Price₹332.50
Sell₹10,651,05105 Feb 19
Arthur Augustine
EntityIndividual
Shares31,988
Max Price₹333.23
Sell₹10,576,50004 Feb 19
Hitendra Chaudhary
EntityIndividual
Shares33,000
Max Price₹320.50
Sell₹7,854,43904 Feb 19
V. Gururaj
EntityIndividual
Shares24,132
Max Price₹325.48
Sell₹4,001,84204 Feb 19
Harish Pai
EntityIndividual
Shares12,400
Max Price₹322.73
Sell₹5,951,36504 Feb 19
Vijaya Reddy
EntityIndividual
Shares18,000
Max Price₹330.63
Sell₹14,624,99901 Feb 19
Sudhir Nayak
EntityIndividual
Shares45,000
Max Price₹325.00
Sell₹6,500,09901 Feb 19
Ritesh Sharma
EntityIndividual
Shares20,000
Max Price₹325.00
Sell₹2,193,82501 Feb 19
Hari Prasad
EntityIndividual
Shares6,700
Max Price₹329.95
Sell₹981,00023 Jan 19
Ashwin Vora
EntityIndividual
Shares4,000
Max Price₹245.25
Sell₹1,573,48903 Jan 19
Vivek Gupta
EntityIndividual
Shares4,700
Max Price₹334.78
Sell₹20,954,77003 Jan 19
Abhijit Zutshi
EntityIndividual
Shares67,800
Max Price₹309.07
Sell₹8,582,54024 Dec 18
Renuka Ganesh
EntityIndividual
Shares27,000
Max Price₹317.87
Sell₹257,00024 Dec 18
Vandana Singh
EntityIndividual
Shares800
Max Price₹321.25
Sell₹2,566,99924 Dec 18
Ankur Bhatnagar
EntityIndividual
Shares8,000
Max Price₹320.87
Sell₹652,15018 Dec 18
Maneesh Ghildyal
EntityIndividual
Shares2,000
Max Price₹326.08
Sell₹1,290,00018 Dec 18
Amitava Saha
EntityIndividual
Role
Head of Human Resources
Head of Human Resources
Shares4,000
Max Price₹322.50
Sell₹388,80015 Dec 18
Vandana Singh
EntityIndividual
Shares1,200
Max Price₹324.00
Sell₹1,665,24015 Dec 18
Maneesh Ghildyal
EntityIndividual
Shares5,200
Max Price₹320.24
Sell₹5,882,56315 Dec 18
Vikram Kumar
EntityIndividual
Shares18,400
Max Price₹319.70
Sell₹3,599,99915 Dec 18
Santosh Kumar
EntityIndividual
Shares11,250
Max Price₹320.00
Buy₹152,845,82111 Dec 18
Biocon Ltd., ESOP
EntityCompany
Shares500,000
Max Price₹305.69
Sell₹3,765,24007 Dec 18
Karthik Ramani
EntityIndividual
Shares12,000
Max Price₹313.77
Sell₹3,728,11707 Dec 18
Amitava Saha
EntityIndividual
Role
Head of Human Resources
Head of Human Resources
Shares12,000
Max Price₹310.68
Sell₹935,25005 Dec 18
Prasad Ravishankar
EntityIndividual
Shares3,000
Max Price₹311.75
Sell₹935,25005 Dec 18
Ravi Shankar P
EntityIndividual
Shares3,000
Max Price₹311.75
Sell₹16,592,84829 Nov 18
Sumit Bhanot
EntityIndividual
Shares54,000
Max Price₹307.27

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Arun Chandavarkar (58yo)

    CEO, Joint MD & Executive Director

    • Tenure: 5.3yrs
    • Compensation: ₹38.27m
  • Sandeep Rao (46yo)

    Senior Vice President

    • Tenure: 0yrs
    • Compensation: ₹4.44m
  • Kiran Mazumdar-Shaw (66yo)

    Founder

    • Tenure: 14.6yrs
    • Compensation: ₹28.09m
  • Mayank Verma

    Company Secretary & Compliance Officer

    • Tenure: 0.3yrs
  • B. S. Prasad (52yo)

    Chief Operating Officer of Biocon Generics & APIs

    • Tenure: 0yrs
    • Compensation: ₹2.37m
  • A. Sriram (56yo)

    Head of Quality - Biocon Biologics & Senior VP

    • Tenure: 0yrs
  • Saurabh Paliwal

    Head of Investor Relations

    • Tenure: 0yrs
  • Seema Ahuja (53yo)

    Senior VP & Global Head of Corporate Communications

    • Tenure: 0yrs
  • Amitava Saha (49yo)

    Head of Human Resources

    • Tenure: 4.1yrs
    • Compensation: ₹6.81m
  • Siddharth Mittal (41yo)

    CFO & President of Finance

    • Tenure: 5.3yrs

Board Members

  • Dan Bradbury (58yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: ₹3.99m
  • John Shaw (70yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: ₹1.55m
  • Arun Chandavarkar (58yo)

    CEO, Joint MD & Executive Director

    • Tenure: 5.3yrs
    • Compensation: ₹38.27m
  • Ravi Mazumdar (64yo)

    Non-Executive Director

    • Tenure: 19.3yrs
    • Compensation: ₹3.51m
  • Bobby Parikh (55yo)

    Independent and Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: ₹2.26m
  • Kiran Mazumdar-Shaw (66yo)

    Founder

    • Tenure: 14.6yrs
    • Compensation: ₹28.09m
  • Alan Cherrington

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Zan Fleming

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Harold Lebovitz

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Mary Harney (66yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: ₹4.14m

Company Information

Biocon Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Biocon Limited
  • Ticker: BIOCON
  • Exchange: NSEI
  • Founded: 1978
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹308.127b
  • Shares outstanding: 1.18b
  • Website: https://www.biocon.com

Number of Employees


Location

  • Biocon Limited
  • 20th KM, Hosur Road
  • Electronics City
  • Bengaluru
  • Karnataka
  • 560100
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532523BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2004
BIOCONNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2004

Biography

Biocon Limited, a biopharmaceutical company, develops, manufactures, and sells active pharmaceutical ingredients and formulations for diabetes, oncology, and autoimmune diseases. It operates through Small  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 12:59
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.