Biocon Ltd., a leading biopharmaceutical company in India, focuses on a diverse range of therapeutic areas and specializes in biotechnology, offering active pharmaceutical ingredients across various segments. With a market capitalization of ₹9,450 crore and a robust performance history, the company is well-positioned for growth, leveraging strategic alliances and a strong drug pipeline. The Indian pharmaceutical industry is projected to grow significantly, highlighting the potential for Biocon's continued success in both domestic and international markets.

2. Current price 488.80
Sector Pharma
No of shares 200000000
52 week high 553.70
52 week low 402.45
BSE Sensex 29044.44
Nifty 8834.00
Average
Volume
694466
BSE Code 532523
NSE Symbol BIOCON
Biocon Ltd.
Recommendation
– BUY/HOLD
Date – 13/04/2015

3. Company Overview
Biocon Limited was set up in the year 1978 as a joint venture between Biocon Biochemicals Limited of Ireland
and an Indian entrepreneur, Kiran Mazumdar-Shaw. Biocon is a fully integrated biopharmaceutical company
focused on biopharmaceuticals, customized research and clinical research. The Company has developed a
robust drug pipeline and offers active pharmaceutical ingredients (APIs), including cardiovascular agents, anti-
obesity agents, oral anti-diabetic agents, anti-inflammatory agents and digestive-aid enzymes.
Biocon's presence in the chronic disease segment in India is represented by over 80 brands spread across
seven therapeutic segments Diabetology, Oncotherapeutic, Nephrology, Cardiology, Immunotherapy,
Comprehensive Care and Bioproducts. Unlike most pharma companies that are chemical based, Biocon has
carved out its niche in the more complex biotechnology field. Over the decades, Biocon has successfully
evolved into an emerging global biopharma enterprise, serving its partners and customers in over 75
countries. The Company has strategic alliances with well known pharmaceutical companies including Mylan
Inc, Amylin Pharmaceuticals, Inc, DuPont, Bristol-Myers Squibb, Endo Pharmaceuticals, IATRICa Inc,
Neopharma, and Vaccinex, Inc. The Company also has commercial and marketing agreements with Pfizer and
Ferozsons Laboratories Limited, and licensing agreement with Abraxis BioScience, Inc, as well as strategic
collaboration for insulin products with Mylan, Inc.
Biocon operates through five broad business verticals small molecules, research services, branded
formulations, biosimilars and novel molecules. However, for reporting purpose, Biocon classifies its operations
into two segments i.e. biopharma and research services. While biopharma comprises ~75% of overall sales,
services account for the rest of the pie. Except for research services, all other business verticals have been
grouped under the biopharma category. The Company’s brands include Herceptin, Enbrel, MabThera,
Remicade, Lantus, Humalog and NovoLog. The current market capitalisation stands at Rs 9,450.00 crore.

4. Category No. of Shares Percentage
Promoters 80,847,694 40.42
Foreign
Promoters
41,200,752 20.60
General Public 24,905,938 12.45
Foreign
Institutions
21,460,044 10.73
Financial
Institutions
9,815,657 4.91
Others 8,378,333 4.19
NBFC and Mutual
Funds
6,930,213 3.47
Other Companies 5,291,631 2.65
Foreign - NRI 1,169,738 0.58
Market Cap (Rs Cr) – 6569.00
Company P/E (x) – 23.91
Industry P/E (x) – 30.10
Book Value (Rs) – 120.84
Price / BV (x) – 3.96
Dividend (%) – 100 %
EPS (TTM) – 20.01
Dividend Yield (%) – 1.05%
Face Value (Rs) – 5
Share Holding Pattern Financial Details

5. Industry Overview
The Indian pharmaceuticals market is third largest in terms of volume and thirteen largest in terms of value, as
per a pharmaceuticals sector analysis report by equity master. The Indian pharmaceutical industry is
estimated to grow at 20 per cent compound annual growth rate (CAGR) over the next five years, as per India
Ratings, a Fitch Group company. The domestic pharma market is expected to grow at 10-12 per cent in FY15
as compared to 9 per cent in FY14, as per a recent report from Centrum Broking. The domestic pharma
growth rate was 11.9 per cent in October 2014, highlighted the report.
Biopharma is the largest sector contributing about 62 per cent of the total revenue, with revenue generation to
the tune of over Rs 12,600 crore (US$ 2.03 billion). The bio-pharma sector comprises vaccines, therapeutics
and diagnostics. Biopharma is the largest sector contributing about 62 per cent of the total revenue, with
revenue generation to the tune of over Rs 12,600 crore (US$ 2.03 billion). The bio-pharma sector comprises
vaccines, therapeutics and diagnostics.
Also, growing at an average rate of about 20 per cent, India's biotechnology industry comprising bio-
pharmaceuticals, bio-services, bio-agriculture, bio-industry and bioinformatics may reach the US$ 7 billion
mark by the end of FY15, according to an industry body. Biopharma is the largest sector contributing about 62
per cent of the total revenue, with revenue generation to the tune of over Rs 12,600 crore (US$ 2.03 billion).
The bio-pharma sector comprises vaccines, therapeutics and diagnostics.
The Indian pharma market size is expected to grow to US$ 85 billion by 2020. The growth in Indian domestic
market will be on back of increasing consumer spending, rapid urbanisation, raising healthcare insurance and
so on. Going forward, better growth in domestic sales will depend on the ability of companies to align their
product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-
depressants and anti-cancers are on the rise.

6. Balance Sheet
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Sources Of Funds
Total Share Capital 100.00 100.00 100.00 100.00 100.00
Equity Share Capital 100.00 100.00 100.00 100.00 100.00
Reserves 2,317.70 2,106.80 1,995.50 1,845.86 1,465.34
Networth 2,417.70 2,206.80 2,095.50 1,945.86 1,565.34
Secured Loans 81.50 28.20 5.60 74.06 89.68
Unsecured Loans 25.90 89.10 141.70 94.57 102.12
Total Debt 107.40 117.30 147.30 168.63 191.80
Total Liabilities 2,525.10 2,324.10 2,242.80 2,114.49 1,757.14
Application Of Funds
Gross Block 1,707.00 1,438.80 1,197.10 1,105.91 1,020.21
Less: Revaluation Reserves 0.00 0.00 0.90 0.95 0.95
Less: Accum. Depreciation 757.70 587.40 512.10 426.22 341.81
Net Block 949.30 851.40 684.10 678.74 677.45
Capital Work in Progress 101.80 51.20 113.80 103.29 58.33
Investments 493.20 619.00 657.00 485.82 418.64
Inventories 357.60 358.90 340.40 274.74 244.80
Sundry Debtors 494.60 427.00 445.00 418.10 383.64
Cash and Bank Balance 204.20 179.20 37.80 185.20 77.11
Total Current Assets 1,056.40 965.10 823.20 878.04 705.55
Loans and Advances 617.80 526.50 543.10 412.41 407.33
Fixed Deposits 0.00 0.00 2.20 25.03 0.01
Total CA, Loans & Advances 1,674.20 1,491.60 1,368.50 1,315.48 1,112.89
Current Liabilities 529.50 471.40 431.80 358.64 426.92
Provisions 163.90 217.70 148.80 110.19 83.25
Total CL & Provisions 693.40 689.10 580.60 468.83 510.17
Net Current Assets 980.80 802.50 787.90 846.65 602.72
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 2,525.10 2,324.10 2,242.80 2,114.50 1,757.14
Contingent Liabilities 781.50 447.10 204.40 154.90 261.74
Book Value (Rs) 120.89 110.34 104.78 97.29 78.27

7. Profit and Loss Account
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Income
Sales Turnover 2,202.50 1,938.00 1,605.30 1,365.29 1,158.35
Excise Duty 0.00 0.00 50.00 38.96 29.90
Net Sales 2,202.50 1,938.00 1,555.30 1,326.33 1,128.45
Other Income 60.60 37.60 66.60 293.00 94.70
Stock Adjustments -1.30 17.90 41.40 27.84 38.95
Total Income 2,261.80 1,993.50 1,663.30 1,647.17 1,262.10
Expenditure
Raw Materials 991.50 915.70 818.90 694.62 608.77
Power & Fuel Cost 161.50 142.40 97.70 81.63 67.25
Employee Cost 266.40 227.60 191.50 145.43 99.84
Other Manufacturing Expenses 0.00 0.00 19.00 16.29 12.32
Selling and Admin Expenses 0.00 0.00 120.40 86.62 105.37
Miscellaneous Expenses 308.50 264.50 15.70 12.38 10.60
Total Expenses 1,727.90 1,550.20 1,263.20 1,036.97 904.15
Operating Profit 473.30 405.70 333.50 317.20 263.25
PBDIT 533.90 443.30 400.10 610.20 357.95
Interest 0.90 1.20 1.70 2.38 1.99
PBDT 533.00 442.10 398.40 607.82 355.96
Depreciation 124.40 95.10 94.00 90.70 79.73
Profit Before Tax 408.60 347.00 304.40 517.12 276.23
Extra-ordinary items 5.50 0.00 0.00 0.00 0.00
PBT (Post Extra-ord Items) 414.10 347.00 304.40 517.12 276.23
Tax 84.20 71.30 48.90 57.87 27.87
Reported Net Profit 329.90 275.70 255.50 459.25 248.36
Total Value Addition 736.40 634.50 444.30 342.35 295.38
Equity Dividend 100.00 150.00 100.00 90.00 70.00
Corporate Dividend Tax 17.00 25.50 16.20 9.08 7.41
Per share data (annualised)
Shares in issue (lakhs) 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Earning Per Share (Rs) 16.50 13.79 12.78 22.96 12.42
Equity Dividend (%) 100.00 150.00 100.00 90.00 70.00

8. Dividend and Bonus History

9. Index and Company Price Movement Comparison

10. Company Forecast

11. Name Value Action
RSI(14) 63.786 Buy
STOCH(9,6) 79.697 Buy
STOCHRSI(14) 71.830 Buy
MACD(12,26) 12.200 Buy
ADX(14) 36.438 Buy
Williams %R -16.138 Overbought
CCI(14) 78.8891 Buy
ATR(14) 16.6250 High Volatility
Highs/Lows(14) 14.4714 Buy
Ultimate Oscillator 46.518 Sell
ROC 10.135 Buy
Bull/Bear Power(13) 27.7960 Buy
Technical Indicators

12. PBIT – 15.41 v/s 15.61
RoCE – 16.21 v/s 15.58
RoE – 14.40 v/s 18.90
Net Profit Margin – 14.57 v/s 13.85
Return on net worth – 13.64 v/s 12.49
D/E Ratio – 0.04 v/s 0.05
Interest Cover – 455.00 v/s 301.75
Current Ratio – 1.95 v/s 1.88
Reserves – 2317.70 cr v/s 2206.80 cr
PAT – 329.90 cr v/s 275.70 cr
Total assets – 2525.10 cr v/s 1938.00 cr
Net sales – 2202.50 cr v/s 1938.00 cr
Book Value – 120.89 cr v/s 110.34 cr
Days BSE NSE
30 441.98 442.06
50 435.60 435.70
150 450.38 450.46
200 460.15 460.24
Important Ratios (YoY) Simple Moving Average

13. Investment Rationalize
Biocon is the India largest biological company with over 80 brands spread across seven therapeutic
segments with 528 Patents and 329 Trade Marks for its products.
Company is the proven player in its most of the product in biotechnology segment which add on to the
advantage of early entrance to the market along with good research and development back up for the
pharma products.
It has products for Diabetology, Oncotherapeutic, Nephrology, Cardiology, Immunotherapy,
Comprehensive Care and Bioproducts which will help the company to tap the demand and capitalize on
the demand for these products segment too.
The debt of the company is being reduced by the management substantially along with its effective
business model ensures quick and positive cash flow.
Revenue of the company is growing at CAGR of 14.3% in the past five years along with sustaining a
Net Profit Margin of 14.7% and Reserves of the company stands at Rs.2317.70 crore.
Income from Biosimilars and CRAMS will help the company to increase the profits in a substantial
manner along with the acquisitions of the company and launching of new products.
Getting of patents and incenses from Europe and America for its products along with future forecast of
the health and diseases of people in India and abroad will add to the growth prospects of the company.
Collaborations with worlds leading pharma players from more than 75 nations will help the company to
add the companies advantage over its competitors along with its India centric approach will help the
company to reduce external interventions.