Biocon Ltd.
NSE: BIOCONBiocon Ltd.: A 30-second snapshot
BIOCON trades at ₹417.6, up 26.75% over 12 months and 11.67% over the past 3 months, with the stock above both its 50-DMA (₹371.1) and 200-DMA (₹374.1). The trailing PE of 147.5 is the highest among 6 pharma peers benchmarked, against a profit margin of 3.59% and a debt-to-equity ratio of 50.0 with a rising debt trend. Forward PE of 48x implies the market is pricing a material earnings recovery.
P/E
147.5
Forward P/E
48.0
ROE
—
Debt / Equity
50.02
Profit Margin
+3.6%
Div. Yield
+0.1%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
46/100
News
8 headlines · 4 positive · 0 negative
Biocon Unit Gets Health Canada Approval for Antifungal Injection - Whalesbook
Whalesbook
Biocon chair Kiran Mazumdar-Shaw charts five-year succession plan, names niece as successor - Reuters
Reuters
Fortune India Exclusive: Kiran Mazumdar-Shaw charts Biocon's next phase; identifies niece Claire Mazumdar as successor - Fortune India
Fortune India
7 Stocks to Buy for Short Term: Brokerages bullish on M&M, Biocon and others with upto 55% upside potential; check full list - Zee Business
Zee Business
Biocon Ltd soars 3.22% - Business Standard
Business Standard
Recent context
- ·Biocon Biologics obtained Health Canada approval for an antifungal injection, extending its regulated-market biosimilars footprint beyond the US and EU.
- ·Chairperson Kiran Mazumdar-Shaw has outlined a five-year succession plan publicly identifying her niece Claire Mazumdar as successor, a governance transition that will unfold alongside ongoing business execution.
- ·RSI of 77.7 places the stock in overbought territory on a trailing basis, with the nearest support levels at ₹375.4, ₹366.0, and ₹359.1 — approximately 10–14% below current price.
Strengths
- +5-year revenue growth of 9.2% demonstrates sustained top-line expansion in a competitive pharma landscape.
- +The stock has recovered to within 1.7% of its 52-week high, trading above both the 50-DMA and 200-DMA, reflecting 12-month price appreciation of 26.75%.
- +Biocon Biologics recently received Health Canada approval for an antifungal injection, adding a regulatory milestone to its biosimilars portfolio.
- +Forward PE of 48x versus trailing PE of 147.5 reflects a consensus expectation of meaningful near-term earnings improvement, with analyst coverage spanning 19 analysts on a 1–5 scale (mean rating 2.32, lower = more constructive).
Weaknesses
- −Trailing PE of 147.5 is the highest in the 6-peer pharma group, with SUNPHARMA at 41x and CIPLA at 29.9x as comparators, while profit margin is only 3.59%.
- −Debt-to-equity of 50.0 with a rising debt trend introduces significant financial leverage in a sector and business where margins are thin and FCF has been positive in only 3 of 5 available years.
- −ROE has not crossed 15% in any year in the persistence window and the full ROE figure is unavailable, meaning the business has not demonstrated consistent equity-return generation during the observed period.
- −Quality score of 41 ranks 4th of 6 peers (below MAXHEALTH at 54 and SUNPHARMA at 50), placing BIOCON at the lower end of the peer quality composite while carrying the sector-highest valuation multiple.
Open questions
- ?Does the 5-year earnings growth of 409.5% reflect a structural improvement in the biologics business or a low-base recovery, and what trajectory underpins the forward PE compression from 147.5x to 48x?
- ?How does a debt-to-equity of 50.0 with a rising trend interact with the biosimilars commercialisation timeline, and what revenue scale is required to generate sustainable positive FCF?
- ?What operational or governance continuity mechanisms are in place to manage the five-year leadership succession at a founder-led organisation, and how has the market historically re-priced similar transitions in Indian pharma?
- ?Given that BIOCON ranks lowest on the quality composite among the 6 benchmarked peers while carrying the highest PE, what specific catalysts would need to materialise to justify the current premium relative to better-quality peers trading at 25–72x?
Peer comparison: Pharma
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BIOCON | Biocon Ltd.You're viewing | 147.5 | — | 41 |
| Industry avg | across 5 peers | 46.7 | +11.8% | 38 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 72.0 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 41.0 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.6 | — | 42 |
| CIPLA | Cipla Ltd. | 29.9 | — | 25 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 25.9 | +11.8% | 17 |
Technical state
Current price
₹417.60
SMA 50
₹371.10
SMA 200
₹374.14
RSI (14)
77.7 (overbought)
From 52w high
-1.7%
1Y return
+26.8%
3M return
+11.7%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highTrailing PE of 147.5 is the highest among 6 pharma-sector peers; nearest peers trade at 72x (MAXHEALTH) and 41x (SUNPHARMA), while trailing profit margin stands at only 3.59%, making the current valuation contingent on a significant forward earnings recovery.
- highDebt-to-equity of 50.0 is materially elevated versus pharma-sector norms, with the debt trend flagged as rising. High leverage in a low-margin business amplifies downside if revenue or operating cash flows weaken.
- highROE has not exceeded 15% in any year over the persistence window (0 of observed years), FCF was positive in only 3 of 5 years, and trailing profit margin is 3.59%, indicating the business has not demonstrated consistent above-cost-of-capital returns during the available history.
- mediumBIOCON ranks 6th of 6 peers on quality score (41 vs sector high of 54 for MAXHEALTH) while simultaneously carrying the highest PE multiple in the group, a combination of bottom-tier quality and top-tier valuation.
- mediumChairperson Kiran Mazumdar-Shaw has publicly announced a five-year succession plan naming her niece as successor, introducing key-person transition risk for a founder-identified organisation over the medium term.
- lowNews sample is limited to 8 items; priceChange1Y and ROE are unavailable for 4 of 5 sector peers, constraining the completeness of sector-relative return and profitability comparisons.
Cross-section contradictions
- Trailing PE of 147.5 is the highest in the peer group, yet forward PE compresses to 48x, implying the consensus embeds a large near-term earnings step-up; the 5-year reported earnings growth of 409.5% coexists with a trailing profit margin of only 3.59% and zero years of ROE above 15%, raising questions about the durability and base of that reported growth figure.
- RSI of 77.7 (overbought) and the stock sitting 1.7% below its 52-week high contrast with weak underlying return-on-equity metrics and elevated leverage, a divergence between recent price momentum and longer-run profitability fundamentals.
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 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days