Networth recommended an Accumulate on Biocon (CMP: Rs. 509)
According to the analysts at Networth, the net sales of the company for FY08 grew by 10% (y-o-y) to Rs 10900 million, driven by a 29% y-o-y growth in contract research services and a 12% growth y-o-y from biopharmaceuticals. The EBIDTA margin has expanded by 300 bps to 32% at Rs 3350 million. The interest outgo has marginally increased while there has been a sharp increase in depreciation due to addition of fixed assets.
Net profit of the company has increased by 132% at Rs 4640 million. The company has declared 1:1 bonus to increase liquidity and a special dividend of Rs 2 per share on divestment of the enzyme business. At CMP of Rs 509 the stock is trading at a PE of 19x its consensus EPS of Rs 26.74 FY09E. They analysts say that currently they do not have any rating on the stock, however remain positive on the stock. They expect future positive triggers in the form of expect approval in 10 to 12 countries to market Insugen and listing of its clinical research services.
Link to the article: http://www.myiris.com/newsCentre/newsPopup.php?fileR=20080424124230094&dir=2008/04/24&secID=livenews
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment