Check Before You Invest : Biocon Ltd

Snapshot

Q.1 Which industry/sub-sector does Biocon Ltd belong to?

Biocon Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Biocon Ltd a good quality company?

Biocon Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Biocon Ltd undervalued or overvalued?

Biocon Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Biocon Ltd a good buy now?

Biocon Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Biocon Ltd?

Biocon Ltd revenue growth is 5.4% for FY-2025, which is above its 5-year CAGR of 2.44%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Biocon Ltd?

Biocon Ltd Return on capital employed is 6.57% for FY-2025, which is above its 5-year historical median of 4.65%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Biocon Ltd?

Biocon Ltd Return on Asset is 4.15%, which is above its 5-year historical median of 3.39%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Biocon Ltd?

Biocon Ltd Return on equity is 5.48% for FY-2025, which is above its 5-year historical median of 3.68%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Biocon Ltd?

Biocon Ltd Cash conversion cycle is 165 days, above its 5-year historical median of 154 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.15	0.18
ROE	5.48	3.68
ROCE	6.57	4.65
Cash Conversion Cycle	165 days	154 days

Q.6 Gross Profit margin of Biocon Ltd?

Biocon Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.1% for FY-2025, which is below its 5-year median of 12.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Biocon Ltd?

Biocon Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.31% for FY-2025, which is in line with its 5-year median of 7.31% indicating stable margins.

Q.8 Net Profit Margin of Biocon Ltd?

Biocon Ltd Net Profit Margin is 27.17% for FY-2025, is above with its 5-year median of 13.83%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.1	12.1
Operating Profit Margin	7.31	7.31
Net Profit Margin	27.17	13.83

Q.9 Debt to Equity ratio of Biocon Ltd?

Biocon Ltd Debt-to-Equity ratio is 0.25, which is above with the industry average of 0.14, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Biocon Ltd?

Biocon Ltd Debt to cash flow from operations is 4.6, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Biocon Ltd?

Promoters hold 44.91% of the Biocon Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Biocon Ltd vs industry peers?

Biocon Ltd revenue CAGR is 2.44%, compared to the industry median CAGR of 8.87%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	5.4	8.9
Gross Profit Growth	-29.6	13.7
Operating Profit Growth	-24.5	13.3
Net Profit Growth	411.8	12.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.15	0.8
ROE	5.48	18.61
ROCE	6.57	17.96
Cash Conversion Cycle (days)	165.06	76

Valuation & price assessment

Q.1 Stock return of Biocon Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	13.4%	-1%	14.7%	12.8%

Q.3 Valuation ratios of Biocon Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	7875.64	88.93	31.09
Price to Book	2.16	3.55	2.85
Price to Sales	24.43	20.07	2.79
EV to EBITDA	109.22	107.42	15.87

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