Biocon Ltd.
NSE: BIOCONBiocon Ltd.: A 30-second snapshot
Biocon trades at a trailing PE of 151.5x against a trailing ROE of 1.15% and profit margin of 2.28%, while forward PE compresses to 36.5x on consensus earnings estimates. Price technicals show the stock above both its 50-day (₹422.42) and 200-day (₹390.60) moving averages, up 9.91% over one year and 15.64% over three months, with recent news dominated by the July 2026 clearance of Mylan's block-deal stake sale and a Health Canada approval for its Yesintek biosimilar.
P/E
151.5
Forward P/E
36.5
ROE
+1.1%
Debt / Equity
42.15
Profit Margin
+2.3%
Div. Yield
+0.1%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
45/100
News
8 headlines · 6 positive · 0 negative
Biocon gets Health Canada nod for Yesintek autoinjector pen - ET Pharma
ET Pharma
Biocon stock jumps 6%, top midcap gainer today as Rs 3,680 crore block deal clears Mylan overhang - Moneycontrol.com
Moneycontrol.com
Mylan exits Biocon with ₹3,679-crore stake sale; Biocon shares jump over 6% - BusinessLine
BusinessLine
Mylan to sell up to $363 million stake in India's Biocon, term sheet shows - Reuters
Reuters
Mylan launches block deal to sell minority stake in Biocon for up to $363 million - livemint.com
livemint.com
Recent context
- ·Mylan completed a roughly ₹3,680-crore (~$363 million) block-deal sale of its minority stake in Biocon in mid-July 2026; Moneycontrol reported the stock up as much as 6% on the day the deal cleared, and this single event accounted for the majority of cached news items in this window.
- ·Biocon received Health Canada approval for its Yesintek autoinjector pen on July 30, 2026, per ET Pharma.
- ·The technical snapshot's current price (₹425.35) is not independently confirmed as of the 2026-08-01 run date given the draft's stale 2026-05-11 runDate field, so it is treated here as an indicative rather than confirmed current reading.
Strengths
- +Received Health Canada approval for its Yesintek autoinjector biosimilar (July 30, 2026), one of the on-target positive items in recent news flow.
- +Trades above both the 50-day (₹422.42) and 200-day (₹390.60) moving averages, up 9.91% over the trailing year and 15.64% over three months, sitting only 4.88% below its 52-week high.
- +Debt-to-equity of 0.42x with a flat debt trend, and free cash flow positive in 4 of the last 5 years.
- +Forward PE of 36.5x is well below the trailing PE of 151.5x, indicating consensus estimates embed a material improvement in near-term earnings versus the trailing base.
Weaknesses
- −ROE has not exceeded 15% in any year of the observed persistence window, trailing profit margin is 2.28%, and 5-year earnings growth is -72.5%, indicating the core business has not consistently generated returns above its cost of capital.
- −Trailing PE of 151.5x is the highest among 6 profiled pharma-sector peers — more than double the next-highest, MAXHEALTH at 74.6x — while its quality score of 15/100 ranks 5th of 6 in the same peer set.
- −Mean analyst rating of 2.35 across 19 analysts (1-5 scale, lower = more constructive) sits in the mid-range rather than at the more constructive end of the scale.
- −Consistency score of 35/100 and 5-year revenue growth of just 2.3% point to a limited track record of durable growth alongside the profitability gaps noted above.
Open questions
- ?Does the gap between trailing PE (151.5x) and forward PE (36.5x) reflect a credible near-term earnings inflection, or does it depend on assumptions not yet visible in the reported five-year earnings trend of -72.5%?
- ?What is driving the divergence between the stock's recent price trend (above both moving averages, +15.6% over three months) and its historically low ROE (1.15%) and profit margin (2.28%)?
- ?How much of Biocon's recent news flow and price move is attributable to the one-off resolution of Mylan's stake overhang versus a change in the underlying biosimilar/generics business fundamentals?
- ?Given a quality score of 15/100 and consistency score of 35/100 relative to sector peers, what specific operating metrics (segment margins, R&D pipeline conversion, biosimilar approval cadence) would need to improve for profitability to become more consistent?
Peer comparison: Pharma
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BIOCON | Biocon Ltd.You're viewing | 151.5 | +1.1% | 15 |
| Industry avg | across 5 peers | 49.4 | +14.8% | 34 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 41.6 | +14.7% | 56 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 66.4 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 74.6 | +14.3% | 37 |
| CIPLA | Cipla Ltd. | 35.4 | — | 28 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 28.9 | +8.8% | 4 |
Technical state
Current price
₹425.35
SMA 50
₹422.42
SMA 200
₹390.60
RSI (14)
49.0 (neutral)
From 52w high
-4.9%
1Y return
+9.9%
3M return
+15.6%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highROE has not exceeded 15% in any year of the observed persistence window (roeYearsAbove15 = 0), trailing profit margin is 2.28%, and 5-year earnings growth is -72.5% (consistencyScore 35/100) — together these indicate the core business has not demonstrated returns comfortably above its cost of capital across the observed history.
- mediumTrailing PE of 151.5x is the highest among the 6 profiled pharma-sector names (next highest is MAXHEALTH at 74.6x), while forward PE compresses to 36.5x, implying consensus estimates price in a substantial near-term earnings recovery not yet visible in the trailing profitability numbers.
- mediumBIOCON ranks 5th of 6 profiled peers on quality score (15 vs sector-best 56 for SUNPHARMA) while simultaneously carrying the highest trailing PE in the same peer set — a combination of near-bottom quality standing and top-of-group valuation.
- low5 of the 8 cached news items in this window relate to a single event — Mylan's roughly ₹3,680-crore block-deal sale of its Biocon stake in mid-July 2026 — so the 6-positive/2-neutral/0-negative sentiment tally reflects repeated coverage of one corporate event rather than 8 independently sourced positive developments.
- lowThe technical section's current price (₹425.35) has no as-of date independently confirmed against the 2026-08-01 run date — the draft's own runDate field carries a stale 2026-05-11 timestamp against news dated as late as 2026-07-30 — so this price is treated as an indicative snapshot rather than a confirmed current quote.
Cross-section contradictions
- Price technicals show a modest uptrend — above both the 50-day (₹422.42) and 200-day (₹390.60) moving averages, up 9.91% over one year and 15.64% over three months, only 4.88% below the 52-week high — while fundamentals over the same broader window show ROE of just 1.15%, a 2.28% profit margin, and a five-year earnings decline of 72.5%, a divergence between near-term price momentum and longer-run profitability.
- Forward PE of 36.5x implies the market is pricing in a substantial near-term earnings recovery, yet ROE has not exceeded 15% in any year of the observed persistence window and 5-year earnings growth is -72.5%, leaving a gap between the valuation's forward assumption and the trailing profitability track record.
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.
Fundamentals & technicals: refreshed 12 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Aug 2026 · rotates through NIFTY 500 every ~5 days