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Biocon Ltd

NSE: BIOCON BSE: 532523

369.75

(-0.68)%

Wed, 04 Feb 2026, 09:12 am

Analysis

dividend

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Pros

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    Cons

    • Biocon is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
    • No need to calculate the sustainability of Biocon's dividends as it is not paying a notable one for India.
    • No need to calculate the sustainability of Biocon's dividends in 3 years as they are not expected to pay a notable one for India.
    • Biocon is not paying a notable dividend for India, therefore no need to check if the payments are stable.
    • Biocon's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
    • Biocon's dividend is below the markets top 25% of dividend payers in India (3.08%).

    future

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    Pros

    • Cash flow for Biocon is expected to increase by more than 50% in 2 years time.
    • Biocon's earnings are expected to grow significantly at over 20% yearly.
    • Biocon's earnings growth is expected to exceed the India market average.
    • Biocon's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • Biocon's earnings are expected to exceed the low risk growth rate next year.
    • Biocon's earnings are expected to increase by more than the low risk growth rate in 3 years time.
    • Biocon's net income is expected to increase by more than 50% in 2 years time.
    • Biocon is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
    • Performance (ROE) is expected to be above the current IN Biotechs industry average.
    • An improvement in Biocon's performance (ROE) is expected over the next 3 years.
    • Biocon's revenue is expected to increase by more than 50% in 2 years time.
    • Biocon's revenue growth is expected to exceed the India market average.
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    Cons

    • Biocon's revenue is expected to grow by 19.4% yearly, however this is not considered high growth (20% yearly).

    health

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    Pros

    • Biocon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Biocon is profitable, therefore cash runway is not a concern.
    • Biocon is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (67.9%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 2.8x debt.
    • Biocon's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (32.6% vs 25.6% today).
    • Interest payments on debt are well covered by earnings (EBIT is 16.2x coverage).
    • Biocon's level of debt (25.6%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the Biocon board of directors is about average.
    • Siddharth's remuneration is lower than average for companies of similar size in India.
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    Cons

    • Siddharth's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
    • Biocon individual insiders have only sold shares in the past 3 months.
    • The average tenure for the Biocon management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • Biocon has significant price volatility in the past 3 months.

      past

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      Pros

      • Biocon's year on year earnings growth rate has been positive over the past 5 years.
      • Biocon has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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      Cons

      • Biocon's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Biocon used its assets less efficiently than the IN Biotechs industry average last year based on Return on Assets.
      • Biocon has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Biocon's 1-year earnings growth is negative, it can't be compared to the Asia Biotechs industry average.

      value

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      Pros

      • 532523 outperformed the Biotechs industry which returned 53.2% over the past year.
      • 532523 outperformed the Market in India which returned -14.5% over the past year.
      • BSE:532523 is up 17.3% along with the Biotechs industry (18.2%) over the past month.
      • BSE:532523 is up 17.3% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Biocon's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Biocon's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Biocon is overvalued based on assets compared to the IN Biotechs industry average.
      • Biocon is poor value based on expected growth next year.
      • Biocon is overvalued based on earnings compared to the IN Biotechs industry average.
      • Biocon is overvalued based on earnings compared to the India market.

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