Biocon multibagger stocks for 2018

Biocon

Biocon multibagger stocks for 2018. Let’s study different aspects of the company and try to understand it’s future outlook. Biocon Limited has a visionary Chairperson & Managing Director as Kiran Mazumdar-Shaw.

Even if Pharma Industry in India as a whole is not doing great, there are few stocks like Biocon pharma company which has the potential to become multibagger due to it’s business model and competitive advantage.

Biocon multibagger stocks for 2018

Focus will be on getting background of Biocon Ltd, understanding it’s business segments, looking at financial numbers & issues Biocon is facing, checking for recent developments in it’s counter and finally assessing Biocon outlook for 2018.

About Biocon pharma company Profile:

Biocon is a pioneer in bringing the benefit of high quality, yet affordable, novel biologics and biosimilars to patients in India and other emerging markets.

Today, Biocon is India’s largest and fully-integrated biopharmaceutical company that develops, manufactures and supplies advanced, life-saving biopharmaceuticals for diabetes, cancer and autoimmune conditions at price points that make them affordable and thus accessible. Read more details.

There have been numerous awards and recognition for the biopharma company. Here is few key awards and recognitions Biocon has received in 2017.

  • Biocon ranked 09 among Global Biotech Employers for 2017 by Science magazine. The only Asian company to feature in Top 20.
  • Biocon was honoured with the prestigious Bio-Pharma Excellence Award at Bangalore Technology Summit.
  • Bagged the prestigious “Best Biotech Patents Award” by IDMA for 2015-16.

Biocon company history:

November 29, 1978 is Biocon’s Founding Day, the start of a bio-revolution in India. Over the years, Biocon has evolved from an enzyme-manufacturing company into a fully integrated biopharmaceutical enterprise.

Biocon India is incorporated as a joint venture between Biocon Biochemicals Ltd. of Ireland and an Indian entrepreneur, Kiran Mazumdar-Shaw. Read full Biocon Company History and events here.

source: Biocon official website & Biocon Wikipedia

Biocon subsidiaries: Syngene

Syngene has state-of-the-art research facilities certified with ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2007. Syngene is a publicly listed company of Biocon which is focused on complete drug discovery and development processes.

AWARDS:

  • Best Bioprocessing Excellence Award 2018 – At 5th Biologics Manufacturing Asia, Singapore
  • Healthcare Company of the Year 2018- At the 7th Annual VCCircle Awards 2018, Mumbai
  • HR Excellence Award 2018 ‘For Best Talent Management Strategy’ – At the HR Talent Management Leadership Awards (World HRD Congress), Mumbai

Key Parameters:

  • Market Cap.: ₹ 32,412.00 Cr.
  • Current Price: ₹ 540.20
  • Book Value: ₹ 84.33
  • Stock P/E: 72.20
  • Promoter: 60.67%
  • Annual consolidated turnover (sales): 3891 Crores
  • Biocon ipo date: 11/03/2004

Business Products and Services:

Biocon mostly caters into 4 segments.

  1. Small Molecules – APIs and Generic Formulations
  2. Biologics – Biosimilars & Novel Biologics
  3. Branded Formulations – Formulations Business in India & UAE
  4. Research Services – Contract Research & Manufacturing

Check out for more at official site.

Biocon Corporate actions

Biocon bonus shares: The last bonus that Biocon had announced was in 2017 in the ratio of 2:1. From June 15, 2017 share has been quoting ex-bonus. Prior to that there was a bonus of 1:1 having ex-bonus date as September 11, 2008.

So far there hasn’t been any Biocon stock split of face value.

Biocon dividend history: Biocon has good dividend history of consistent declaration. For the year ending March 2017, Biocon has declared an equity dividend of 20.00% amounting to Rs 1 per share.

Balance sheet:

Biocon multibagger stocks BS

Annual Profit Loss statement:

Biocon multibagger stocks Annual result

Biocon Quarterly Results :

Biocon multibagger stocks Quarterly result

Biocon Share price performance:

Biocon 3 year graph

Current Challenges:

First and foremost point is Pharma industry is going through a bad phase.

  • Biocon Plant operation got disrupted as it was upgrading it’s facility to compliant with European regulatory norms. This impacted performance negatively. Now company is waiting for re-inspection and hopeful that they will get approval.
  • There has been pricing pressure in US market due to stringent regulatory norms felt by it’s clients there.
  • Approvals have been slower in emerging markets thus delaying the launch of new products.

Positive Biocon outlook ahead:

No doubt entire Pharma Industry in India and almost all the companies in Pharma industries are taking the hit. Nevertheless there are few companies which are going to outperform their peers in next few years. We believe Biocon Ltd is one of those out-performers.

  • Biocon has received biosimilar approval in the US. It has become first Indian pharmaceutical company to receive this. Even though Trastuzumab approval does not imply immediate launch of the product in the US, it endorses the development and manufacturing capabilities of Biocon in the realm of biosimilars.
  • Neulasta biosimilar (oncology) is second in line from the Biocon-Mylan pipeline for USFDA approval in the US and boasts sales of US$3.9 billion in the US.

Apart from developments in USA there are also developments in other emerging markets like Malaysia for Biocon.

  • Biocon’s Malaysia Insulins facility received GMP certificate from EMA. This will start producing the products thus adding to both top-lines and bottom-lines.
  • JDRF supports Biocon Study of Novel, Fast-acting Oral Insulin Tregopil for Type 1 Diabetes Treatment. This will create huge opportunities for Biocon in coming years.

Furthermore there are some recent developments in Indian markets.

Kiran Mazumdar-Shaw said recently that she would invest in the healthcare centers of Uttar Pradesh and government is eager to extend their support.

Summary:

Ace investors like Rakesh Jhunjhunwala and Porinju Veliyath have now support for Pharma Industry. In of his tweets in August 2017, Porinju Veliyath mentioned Pharma Industry is in inflection point now.

Indian Pharma biz has global competitive advantage, long way to go; stocks have corrected to rational levels. Looks like an inflection point. ~ Porinju Veliyath

Biocon stock recommendation: Not only both the ace investors support Pharma Industry but they have also their favorite stocks in Pharma space. Especially Porinju has a very positive view on Biocon.

Why Biocon is a Great Pick:
My high conviction bet. Confident on @kiranshaw & @Bioconlimited
Holding in PMS & Prop.

We don’t go for biocon share price forecast or any biocon share target price. But we believe biocon is recovering fast and moving towards right direction. Based on interview with it’s CEO, upcoming quarters will show slight better numbers. But with the start of FY19 there will be healthy double digit growth.

So we are positive on Biocon with a time horizon of 2 to 3 years duration.

Check out Future Consumer enterprises ltd multibagger.

References: Screener, stockaxis, moneycontrol, biocon official site, biocon annual report and Investor presentation.

Hope you find this post about Biocon multibagger stocks for 2018 useful and beneficial. Do add comment and let me know what is your view on Biocon multibagger stock.

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