Biocon Ltd.
Pharma · NSE
52-week range
₹317 – ₹425
From 52w high
-10.5%
RSI (14)
62.5
vs SMA 50 / 200
↑ 50 · ↑ 200
Biocon (BIOCON) trades at ₹380.40, above its 50-DMA (₹370.37) and 200-DMA (₹374.04), with an RSI of 62.5 and an 11.6% price gain over 12 months. At a trailing PE of 134.8 — the highest in its 6-stock pharma peer group — the stock carries a profit margin of 3.59%, a debt-to-equity of 50.0 (rising trend), and a quality score of 44, ranking last among benchmarked peers on both valuation and quality composite.
- ✓Forward PE of 40.6x implies the market is pricing in a substantial earnings recovery relative to the trailing 134.8x multiple, and 5-year reported earnings growth of 409.5% reflects growth from a low base.
- ✓Price is above both the 50-DMA (₹370.37) and 200-DMA (₹374.04), with the 52-week drawdown limited to 10.5% from the high and a 12-month return of +11.6%.
- ✓FCF was positive in 3 of the 5 available historical years, and 5-year revenue growth of 9.2% indicates a growing top line in an R&D-intensive sector.
- ✓Mean analyst rating of 2.21 across 19 analysts (1–5 scale, lower = more constructive) reflects a relatively constructive average stance from sell-side coverage.
- ✗Debt-to-equity of 50.0 on a rising trend represents the most acute balance-sheet risk; this level of leverage relative to a 3.59% profit margin leaves limited buffer if revenue or operating cash flows soften.
- ✗BIOCON ranks 6th of 6 peers on quality score (44) and carries the highest trailing PE (134.8x) in the peer group, indicating the current valuation is not supported by a quality-score premium over peers.
- ✗ROE has never exceeded 15% in any year of the persistence window, and FCF was negative in 2 of 5 observed years, indicating inconsistency in capital efficiency and cash generation.
- ✗Active succession planning for the chairperson role, with a publicly stated five-year transition timeline, introduces key-person and governance transition uncertainty for a founder-led company.
- ·Biocon announced a five-year succession plan in early May 2026, with chairperson Kiran Mazumdar-Shaw naming her niece Claire Mazumdar as successor; Reuters and Fortune India covered the announcement, and shares were reported to have risen on the day of the disclosure.
- ·A Q4FY26 board meeting was scheduled for 7 May 2026 under NSE Regulation 29, with results pending at the time of data capture — the forward PE of 40.6x implies materially higher earnings are expected for FY26 or FY27.
- ·News sentiment across 8 recent articles is 6 positive and 0 negative; however, the small sample size limits the reliability of this read, and the dominant theme is the succession event rather than operating performance.
- ?Does the forward PE compression from 134.8x to 40.6x rest on a single large earnings event in one quarter, or is it spread across sustained margin improvement across multiple periods?
- ?Given a debt-to-equity of 50.0 on a rising trend, what is the debt maturity profile and operating cash flow coverage ratio, and how sensitive is interest coverage to a modest revenue shortfall?
- ?Is the 409.5% five-year earnings growth a recovery from a loss or near-zero profit year, and does the current 3.59% profit margin represent a structural ceiling or a transient trough for the biosimilars business model?
- ?How has Biocon historically navigated regulatory milestones — FDA approvals, biosimilar launches in regulated markets — and what is the pipeline event calendar that underpins analyst estimates over the next 12–18 months?
PE
134.8
Forward PE
40.6
ROE
—
Profit margin
+3.6%
D/E
50.02
Dividend yield
+0.1%
Quality score
44/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
3/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.