Biocon Q2 nos miss estimates; brokerages cut targets; stock slips

Biocon, a Bengaluru-based pharmaceutical company’s shares slipped over 4 per cent in morning deals on BSE on Monday, November 13. The stock touched the intra-day low of Rs 224.4. Selling pressure in the stock came after the company posted its July-September quarter numbers that missed estimates. After poor second-quarter results of the company, brokerages also cut their target prices on the stock.  

At around 9:50 a.m., shares of Biocon traded 3.85 per cent, or Rs 9.05 lower, at Rs 225.75 apiece. The market capitalisation of the company stood at Rs 27,169.58 crore. Biocon shares ended 3.17 per cent lower at Rs 227.35 at close on BSE.

Brokerages’ view

Jefferies maintained a ‘buy’ rating on the stock and cut the target to Rs 280 apiece from Rs 300.

Goldman Sachs also continued with a ‘hold’ rating but cut the target to Rs 245 apiece from Rs 275.

Here’s how Biocon fared in Q2

Biocon posted its Q2 results in post-market hours, where the biotechnology major said its consolidated net profit rose over twofold to Rs 173 crore for the second quarter ended September 30, 2023, as against Rs 82 crore for the July-September period of the last fiscal. 

The total income rose to Rs 3,620 crore for the second quarter as against Rs 2,384 crore in the year-ago period, Biocon Ltd said in a regulatory filing.

The revenue for the second quarter of the current fiscal stood at Rs 3,462 crore as against Rs 2,320 crore a year ago. The revenue estimates were at Rs 3,640 crore. The earnings before tax, interest, depreciation, and amortisation (EBITDA) stood at Rs 741 crore as against Rs 471 crore year-on-year. The estimates were at Rs 843 crore. 

The company’s margin, a key to measuring profitability, was estimated at 23 per cent but came in at 21.4 per cent in Q2 as against 20.3 per cent year-on-year (YoY).

Biocon share price: Past performance

In 2023 so far, shares of Biocon have lost over 13 per cent as against the Nifty50’s rise of nearly 7 per cent. 

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