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Product Overview
Company Financials
Peer Comparison
13
Shareholding Pattern
14
16
Investment Rationale
17
Page | 1
Chart Hypothesis: Above is the weekly price chart of Biocon for last 1
yr, in which we can see that it made a new high of628.5 and has given
breakout of important level of 545.
Page 2
Date of Incorporation
29-Nov-1978
Date of Listing
07-Apr-2004
Management
Name
Designation
M Damodaran
Addnl.Independent
Director
Jeremy Levin
Addnl.Independent
Director
Vijay Kuchroo
Addnl.Independent
Director
Kiran Mazumdar
Chairperson & MD
Shaw
Arun Chandavarkar
Joint MD & CEO
Daniel M Bradbury
Non Exe. Director
Russel Walls
Non Exe. Director
Suresh N Talwar
Non Exe. Director
Bala S Manian
Non Exe. Director
Mary Harney
Non Exe. Director
Charles L Cooney
Non Exe. Director
Ravi Mazumdar
Non Exe. Director
John Shaw
Vice Chairman
Registered Office Address
20th K M, Hosur Road,Electronic
City,560100,Bengaluru,Karnataka,India
Website
http:// www.biocon.com
Product Overview
Biocon has systematically leveraged its technology platforms from
enzymes to small molecules to recombinant proteins and antibodies.
Through partnerships and alliances, Biocon has strategically moved up
the value chain from supplying pharmaceutical bulk actives to
developing proprietary molecules and own branded formulations.
In the areas of custom and clinical research services, collaborative
partnerships with complementary biotechnology and pharmaceutical
companies are yielding rich results. These partnerships will positively
impact all phases of discovery portfolio. Biocon offers range of
products from fermentation derived small molecules to recombinant
proteins and antibodies. In the specialized field of custom biomanufacturing, Biocon provides high quality, cost-competitive services
to domestic and international pharmaceutical companies.
Small Molecules: Biocon's Small Molecules business is built on a robust
foundation of unique expertise in fermentation technology and
entrenched presence in the chronic therapy space. Biocons
differentiated portfolio spans complex molecules ranging from
cardiovascular and anti-obesity agents to immuno-suppressants and
narrow spectrum antibiotics. It provides affordable access to patients
and partners across the globe.
APIs: Biocon is one of the largest statins and immunosuppressants
manufacturers in the world and a preferred partner for Active
Pharmaceutical Ingredients (APIs).
With a strong focus on R&D in the Small Molecules business, Biocon
has built a robust pipeline of complex generic products. A steady
stream of new Drug Master Files (DMF) is filed with various regulatory
authorities in several countries.
Generic Formulations: Biocon is developing value-added generic
formulations for both emerging and developed markets.
The Generic Formulations business, established in 2012, filed its first
set of Abbreviated New Drug Applications (ANDAs) in the US and
Marketing Authorization Applications (MAAs) in the EU during FY 15.
These filings are in line with their strategy of reducing the threat arising
from the commoditization of APIs, by moving up the value chain to
develop generic finished dosages for global markets.
Page 3
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Page 7
Company Financials
Income Statement (in Cr)
Net Sales
Other Operating Income
Total Income From Operations
Increase/Decrease in Stocks
Consumption of Raw Materials
Purchase of Traded Goods
Employees Cost
Depreciation
Other Expenses
Total Expenditure
Operating Profit
Other Income
PBIT
Interest
P/L Before XO Items & Tax
Exceptional Item
P/L Before Tax
Tax
PAT
Minority Interest
Net Profit/(Loss) For the Period
Equity Share Capital
Reserves
EPS (Rs.)
Mar16
Quarterly
970.3
8.5
978.8
23.9
307.8
29.5
173.5
62.8
231
828.5
150.3
24.7
175
1.4
173.6
268.4
442
58.2
383.8
-22.9
360.9
100
-18.05
Dec15
Quarterly
828.2
8.2
836.4
-28.5
310.3
30.9
158.9
62.1
175.7
709.4
127
19.7
146.7
1.5
145.2
-145.2
24.1
121.1
-18.1
103
100
-5.15
Sep15
Quarterly
Jun15
Quarterly
828.48
8.72
837.2
-41.2
346.66
24.16
149.68
59.61
160.24
699.15
138.05
24.6
162.65
2.93
159.72
307
466.72
137.69
329.03
-23.06
305.97
100
-15.3
778.96
54.03
832.99
13.99
290.12
22.42
154.27
57.8
140.01
678.61
154.38
23.52
177.9
4.42
173.48
-173.48
36.95
136.53
-10.29
126.24
100
-6.31
Mar15
Quarterly
830.38
7.3
837.68
9.88
292.29
35.34
136.56
58.52
178.38
710.97
126.71
16.83
143.54
-143.54
95.16
238.7
21.9
216.8
-15.26
201.54
100
-10.08
Mar16
Annual
3,405.90
79.5
3,485.40
-31.8
1,254.90
107
636.3
242.3
699
2,907.70
577.7
84.5
662.2
10.2
652
575.4
1,227.40
256.9
970.5
-74.4
896.1
100
3,954.70
44.81
Profitability Highlights:
Top line of the company has increased YoY from 830 Cr to 970 Cr
Co has exceptional item of rs 268.4 Cr exceptional item was on account of the previously deferred amounts
of Rs 268 crore relating to clinical trial and development activities of insulin products with its Mexican
partner, Lab PiSA
The firms contract research arm Syngene had contributed about 33% to Biocon revenues.
If we exclude the exceptional item PAT has gone down QoQ by 6%, on including the exceptional item the PAT
has gone up by 217%
Page 8
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
18,072
2,984
5,421
4,958
4,137
572
17,784
478
19,766
6,327
13,439
3,867
35,856
10,606
19,997
2,836
7,310
4,917
3,783
1,151
19,453
511
23,217
7,852
15,365
3,577
39,450
10,158
22,400
4,735
7,208
5,097
3,984
1,376
21,761
645
26,610
9,672
16,938
4,178
44,161
9,899
26,388
5,564
9,476
5,998
3,766
1,584
31,118
645
37,577
11,711
25,866
4,607
57,506
13,796
24,626
4,620
6,049
7,705
4,527
1,725
39,128
1,000
44,688
13,943
30,745
7,383
63,754
15,547
39,932
19,213
4,285
8,229
5,114
3,091
44,884
4,123
NA
NA
38,837
1,924
84,816
16,276
Accounts Payable
Short Term Borrowings
Other Short Term Liabilities
Total Long Term Liabilities(D)
Long Term Borrowings
Other Long Term Borrowings
Total Liabilities
Minority Interest
Share Capital & APIC
Retained Earnings & Other Equity
Total Shareholders Equity(E)
Total Liabilities & Equity(C+D+E)
Book Value Per Share
2,965
2,474
5,167
4,545
658
3,887
15,151
377
3,788
16,540
20,705
35,856
102
3,478
1,873
4,807
6,530
698
5,832
16,688
38
3,788
18,936
22,762
39,450
114
3,455
1,033
5,411
6,663
1,640
5,023
16,562
653
3,788
23,158
27,599
44,161
135
3,472
2,575
7,749
12,620
6,062
6,558
26,416
823
3,788
26,479
31,090
57,506
151
4,293
3,476
7,778
13,779
7,696
6,083
29,326
1,722
3,788
28,918
34,428
63,754
164
5,471
3,949
6,856
24,872
20,724
4,148
41,148
3,112
1,000
39,556
43,668
84,816
203
Page 9
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Net Income
3,675
3,384
5,089
4,138
4,974
1,567
1,758
1,793
2,036
2,210
(480)
76
(548)
(1,215)
2,692
980
(1,923)
377
(3,540)
7,936
5,642
5,035
6,003
2,429
28
--
(1,890)
(2,745)
(3,586)
(7,885)
(8,381)
Increase in Investments
(825)
(1,541)
(1,981)
(2,479)
--
Decrease in Investments
21,105
823
1,643
2,170
--
(21,730)
(473)
(236)
(1,623)
2,967
(3,334)
(3,936)
(4,159)
(9,789)
(5,414)
Dividends Paid
(768)
(997)
(1,162)
(1,755)
(1,446)
(594)
(535)
(1,028)
1,634
171
623
174
1,191
4,579
3,247
(1,769)
(215)
(206)
(186)
(145)
97
348
1,379
344
105
(2,411)
(1,225)
174
4,616
1,932
2,191
481
1,050
830
(1,053)
6,046
2,897
1,449
(1,882)
(5,952)
6,106
2,941
1,483
(1,870)
(5,932)
4,312
2,321
1,407
4,173
(2,679)
30.92
14.79
7.40
(9.59)
(29.76)
Page 10
Ratio Analysis
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Valuation Ratios
Price Earnings
19.85
13.84
10.53
20.13
18.87
10.79
EV to EBIT
17.31
11.74
11.80
15.21
19.42
17.48
EV to EBITDA
12.17
7.76
8.09
10.94
13.42
12.31
Price to Sales
3.77
2.29
2.16
2.89
3.04
2.84
Price to Book
3.39
2.10
2.03
2.80
2.87
2.38
Dividend Yield
0.01
0.02
0.03
0.01
0.01
0.01
EBITDA Margin
0.29
0.25
0.23
0.25
0.23
0.24
Operating Margin
0.21
0.17
0.16
0.18
0.16
0.17
Profit Margin
0.21
0.17
0.20
0.14
0.16
0.26
Return on Assets
0.11
0.09
0.12
0.08
0.08
0.12
Return on Equity
0.19
0.16
0.20
0.14
0.16
0.24
Current Ratio
1.70
1.97
2.26
1.91
1.58
2.45
Quick Ratio
1.26
1.48
1.72
1.52
1.18
1.95
52.90
67.24
97.70
35.46
31.52
56.64
Tot Debt/Capital
0.13
0.10
0.09
0.22
0.25
0.36
Tot Debt/Equity
0.15
0.11
0.10
0.28
0.32
0.57
Asset Turnover
0.55
0.54
0.59
0.57
0.51
0.46
3.80
4.15
4.96
5.19
4.51
4.28
2.86
2.43
2.95
3.03
3.28
NA
0.15
0.14
0.16
0.20
0.15
0.21
Profitability Ratios
Others
Ratio Analysis:
Biocons debt equity has increased but still the company is managing to maintain it below 1 benchmark of
pharma industry
Return on Asset has increased yoy by 50% from 0.08 to 0.12
Return on Equity has increased yoy by 50% from 0.16 to 0.24
Biocons Interest Coverage ratio is very good 56.64 which signifies company has enough earnings (EBIT) to
repay its increasing debt.
Page 11
Peer Comparison
Company Name:
Latest Fiscal Year:
52-Week High
52-Week High Date
52-Week Low
52-Week Low Date
Daily Volume
Current Price:
52-Week High % Change
52-Week Low % Change
Total Common Shares
Market Capitalization
Total Debt
Minority Interest
Cash and Equivalents
Current Enterprise Value
BIOCON WOCKHARDT
CIPLA
LTD
LTD
LTD
03/2016
03/2016
03/2015
628.50
1,748.20
748.00
5/4/2016
12/2/2015
8/17/2015
395.30
705.75
494.55
8/24/2015
2/12/2016
3/29/2016
389,572
580,864
331,729
617.55
963.25
535.00
-1.7%
-44.9%
-28.5%
56.2%
36.5%
8.2%
200.0
110.5
803.0
123,510.0
106,440.0
429,810.6
24,673.0
22,041.9
17,033.3
3,112.0
4,703.7
1,804.8
23,498.0
14,781.1
9,354.9
127,797.0
118,404.5 441,078.9
AUROBINDO
PHARMA
03/2015
891.50
12/30/2015
582.00
2/25/2016
701,934
817.40
-8.3%
40.4%
584.0
478,317.6
NA
NA
NA
514,102.6
LUPIN
SUN
LTD
PHARMA
03/2015
03/2015
2,129.00
1,010.10
10/6/2015
5/25/2015
1,280.00
704.00
3/29/2016 11/24/2015
203,378
763,878
1,609.55
806.10
-24.4%
-20.2%
25.7%
14.5%
449.5
2,071.2
725,419.0
1,940,015.7
NA
NA
NA
NA
NA
NA
725,758.3 1,902,859.9
Above table shows that among all the peers BIOCON is the strongest having hit 52 week high recently in 2016 while
all the shares have hot 52 week low in 2016
Price & Volume Comparison
INSTRUMENT
Price
Avg. Volume
Market
Cap (Rs.
in Cr)
BIOCON
617
1140382
12207
AUROBINDO
815
1621480
47773
PHARMA
CIPLA
535
1968193
43109
LUPIN
1609
1103972
72355
SUN PHARMA
803
2564929
193816
WOCKHARDT
958
991621
10501
BIOCON is a Midcap Company with good average
volume
INSTRUMENT
BIOCON
AUROBINDO PHARMA
CIPLA
LUPIN
SUN PHARMA
WOCKHARDT
3M
33.41
18.1
-0.38
-13.36
-5.9
-0.59
6M
39.38
-1.79
-16.41
-10.33
10.02
-38.2
1Y
40.63
27.08
-18.05
-9.32
-14.35
-26.2
BIOCON is the top performer given highest return in last 1 year where its peers have given negative return.
Page 12
Shareholding Pattern
Shareholding Pattern
Mar-16
Dec-15
Sep-15
Jun-15
Promoter and Promoter Group (%)
60.72
60.72
61.02
61.02
Indian
39.92
39.92
39.92
39.92
Foreign
20.80
20.80
21.10
21.10
Institutions (%)
19.35
19.77
19.21
19.91
FII
13.63
12.80
11.83
11.59
DII
5.72
6.97
7.38
8.33
NonInstitutions (%)
19.93
19.51
19.76
19.06
Bodies Corporate
NIL
NIL
1.44
1.55
Others
17.99
17.66
18.32
17.51
Custodians
1.94
1.85
NIL
NIL
Total no. of shares (cr.)
20.00
20.00
20.00
20.00
BIOCONS shareholding shows that FII investment has been contact throughout the year
Category
Promoters
Promoters
Non Promoters
Non Promoters
Non Promoters
Non Promoters
Non Promoters
Non Promoters
Non Promoters
Mar-15
61.02
40.42
20.60
19.10
10.73
8.37
19.87
2.65
17.23
NIL
20.00
Mar-16
Dec-15
Sep-15
Jun-15
Mar-15
19.77
39.64
1.1
3.02
1.75
1.55
1.05
1.23
NIL
19.77
39.64
1.1
NIL
1.75
2.36
1.05
1.28
NIL
19.77
1.86
1.1
2.93
NIL
2.5
1.14
NIL
1.03
19.77
39.64
1.1
2.79
NIL
2.93
1.14
NIL
NIL
19.77
39.64
1.1
2.7
NIL
3.12
1.14
NIL
NIL
Promoters of BIOCON have kept their investment constant throughout the year
Page 13
0.53%
3.97%
79.14%
United States
9.49%
India
5.75%
Luxembourg
3.97%
Britain
0.53%
Finland
0.28%
Ireland
0.27%
Others
0.57%
0.28%
5.75%
0.27%
0.57%
9.49%
India
Luxembourg
79.14%
Ireland
4.23%
1.98%
75.24%
Investment Advisor
4.23%
Government
1.98%
75.24%
Individual
Government
Ownership
(Institutiona
l)
Ownership Statistics
Shares Outstanding (M)
200.0
Float
33.8%
Ownership (Institutional)
36.80%
18.34%
Ownership (Insider)
44.85%
Page 14
Other
Investment
Advisor
18.55%
18.55%
Individual
Britain
Finland
Unknown
Country
United States
44.85%
36.80%
18.34%
Ownership
(Retail &
Other)
Ownership
(Insider)
This is the first biosimilar that would enter Japan from any
non multinational company (MNC). Japan has only 3
players for the product currently.
This will offer business worth USD 8-10 billion from FY17.
Page 15
Investment Rationale
Page 16
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Page 17