Edelweiss has maintained its accumulate rating on Biocon in its April 22, 2008 research report. "Biocon’s Q4FY08 results were in-line with our estimates, with YoY sales and EBITDA declining 4% and 2.4%, respectively, while net profit for the quarter grew 8.8% YoY. The company recorded other income of INR 120 million, significantly higher than our expectations, which helped boost profit for the quarter. EBITDA margin for the quarter was 31.1%, improving 50bps, while for the full year it stood at 28.4%. Reported net profit for FY08 (including exceptional items) was INR 4,554 million."
"With these numbers we don’t see any near-term trigger for the stock. The listing of Syngene in FY09E will be an event to watch out for, but, we believe, at current prices the upsides due to this unlocking of value are already included in the price. Its R&D projects in various phases are progressing well and any new development on this front (which is uncertain) could give the stock some upsides, going forward. At CMP of INR 509, the stock trades 21x FY09E numbers. We maintain our ‘ACCUMULATE’ recommendation," says Edelweiss research report.
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