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Biocon: Q3 latest result Update: Buy Hold Or Sell

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Biocon: Q3 latest result Update: Buy Hold Or Sell



Whole Detailed Analysis of the sector is updated at:

The biotechnology industry in India comprises about 600+ core biotechnology companies, approx. 2600+ biotech startups, 41 BIRAC-supported incubators. India has the second-highest number of US Food & Drug Administration (USFDA)-approved manufacturing plants outside the US. Consider as one of SunRise Sector & This Industry has grown by the fast pace of 20% CAGR since the last decade and growth is likely to stay in the future. There are around 7 Listed Companies in this sector but major Sales and Profits are made by Biocon. A Leader in Biotechnology. Biocon is with larger market share, High Margins, Low Debt and hence better ROE.

Biocon: Cmp: 258: A very good company from the sector of tomorrow - Biotechnology. From a Rs 10,000 biotechnology startup in 1978 & Just 2 Employees to Asia’s premier biopharmaceuticals Company. Able to grow its business since 1999 at 32 cr which grew to 500 cr and profit of 160 cr from 2004 to today around 5500 cr revenue and 1000 cr profits. Around 10X growth. Hence investment of 1 lakh is also 10X during the last decade. Biocon establishes Syngene, India’s first CRO, in 1993 as its subsidiary to spearhead a new concept of providing scientific research services to the global pharmaceutical industry. Today Syngene does the sales of around 2000 cr and it's a listed company. Able to grow by low debt, high margins. Best in the sector. For a long time, we have been recommending Biocon as the wealth creator of the sector and many of You are already Holding this stock since 65 during 2013 and we got too bored as it did not rally for 3 long years. Patience is the key, again many of You bought it near 175 during 2017 and here it is. 9M revenue and profit were not in line as revenue has grown by 19% which was a little less than expected still shows high growth in this muted economy. Growth of 19% shows demand is good, but profits have fallen by -11% respectively which were again in line as expected since the beginning of the year. Last year profit was higher on account of exceptional single time gains seen last year from the sale of the property, Losses due to fire in Syngene of around 100 cr loss which was reimbursed by Insurance this time. On longer-term no doubt a wealth creator. New buying has already recommended around 220 during any fall and can hold it for long term wealth, the target of 1300 could be expected with consistent dividends every year. FPI holds around an 18% stake while MF companies hold around 3%. Indian Retail Investor holds just around 4%.

Disclosure: Do Not Buy or sell before consulting your advisor as the writer may have the position in the above-given stocks or indices


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