NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Biocon Ltd.’s Q1 FY25 performance was marred by muted performance across segments and the divestment of its India portfolio to Eris Lifesiences. Efforts to cut research and development and boost margins in Q1 was impaired by salary cost of employees from the Viatris acquisition – margins touched a new low of ~18%.
While biologics’ performance will likely be muted in Q2, revival in H2 FY25 is contingent on traction in Hulio in U.S., and Abevmy and Ogivri in UK.
Further, the launch of liraglutide generic in emerging markets may not fetch a sizeable delta in earnings.
Biocon has to pay a deferred acquisition consideration of up to $335 million to Viatris in FY25, which may spike debt levels in the near term.
We cut our Ebitda estimates by 5–6% for FY25–26 to factor in the dismal performance in biologics. Retain Sell with a lower target price of Rs 235 (earlier Rs 245).
Click on the attachment to read the full report:
Biocon Shares Fall As Q1 Revenue Misses Estimates
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
. Read more on Research Reports by NDTV Profit.