Biocon’s subsidiary Biocon Biologics recently inked a major $333 million deal to acquire the business of biosimilar player Viatris Inc.
India’s bio-pharmaceutical company Biocon’s shares are still under pressure. The company’s subsidiary Biocon Biologics recently inked a big deal worth $333 million to acquire the business of biosimilar player Viatris Inc. Since the arrival of this news, the stock has broken up to double digits. However, the brokerage house has mixed views on the company’s growth outlook. Some have advised buying in the stock and some have advised to sell. At the same time, some brokerages are also neutral on the stock. The target of Rs 430 for the stock has been given by the brokerage house, which is 25 percent more than the current price of Rs 344.
Brokerage House Motilal Oswal
Brokerage house Motilal Oswal has given Neutral rating in the stock. A target of Rs 385 has been given for the stock, which is 10 percent more than the current price of Rs 344. The brokerage has increased its FY23E/FY24E EPS estimate by 3.4%/15% on account of the deal. On the other hand, the sales / PAT CAGR for FY22-24E is estimated to be 36%/56%. The company will get the benefit of better traction in commercialized biosimilars. The brokerage says that Biocon’s biosimilar/small molecules have a better overall outlook. However, due to the current valuation, there is not much upside in the stock.
Brokerage House ICICI Securities
Brokerage house ICICI Securities has given a hold advice in the stock. The target for the stock is Rs 353. The brokerage says that after the deal, the net debt level of BBL will increase to $ 150 million. Whereas Net Debt / EBITDA will be 4 times. This will affect the financials in the near term.
Brokerage House Sharekhan
Brokerage house Sharekhan has given investment advice in Biocon and has given a target of Rs 420. The brokerage says that this deal will prove to be better for the company in the long term. However, this will increase the debt level and affect profits. However, the broad product portfolio and focus on new geographies for expansion will further benefit.
Global Brokerage House
The leading brokerage house CLSA has given a sell advice on the stock and has given a target of Rs 310. However, giving investment advice, Jefferies has given a target of Rs 413. Whereas Goldman Sachs has given a target of Rs 430 in the stock.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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