 "Biocon falls over 10% in five trading days")
Biocon dipped 5% to Rs 1,031, extending its 6.8% decline in past four trading days on the BSE. In comparison, the benchmark S&P BSE Sensex gained marginally by 0.03% during the same period.
Biocon posted muted growth during the March 2017 (Q4FY17) quarter on the back of weak performance in small molecules and decline in Syngene sales. Total sales of the company during the quarter declined 2% year on year (Y-o-Y) at Rs 925 crore.
Net profit after exceptional item was down 62% YoY at Rs 127 crore. The exceptional income of Rs 256 crore in Q4FY16 was on account of a deferred revenue recognition pertaining to partnering of our rh-insulin development program.
Analyst at Motilal Oswal Securities maintained ‘Sell’ on the stock with a revised target price of Rs 900.
“Recent stock price run-up is mainly led by positive developments in Biosimilars. Although the progress is impressive, we believe there are some uncertainties capping upside potential. In the near term, commissioning of Malaysia plant would pressurize profits,” the brokerage firm said in result update.
In current calendar year 2017, the stock had outperformed the market by gaining 23% against 12% rise in the benchmark S&P BSE Sensex till April 25, 2017.
At 11:26 am; the stock was down 4.7% at Rs 1,036 on the BSE. A combined 994,594 shares changed hands on the counter on BSE and NSE so far.
Biocon posted muted growth during the March 2017 (Q4FY17) quarter on the back of weak performance in small molecules and decline in Syngene sales. Total sales of the company during the quarter declined 2% year on year (Y-o-Y) at Rs 925 crore.
Net profit after exceptional item was down 62% YoY at Rs 127 crore. The exceptional income of Rs 256 crore in Q4FY16 was on account of a deferred revenue recognition pertaining to partnering of our rh-insulin development program.
Analyst at Motilal Oswal Securities maintained ‘Sell’ on the stock with a revised target price of Rs 900.
“Recent stock price run-up is mainly led by positive developments in Biosimilars. Although the progress is impressive, we believe there are some uncertainties capping upside potential. In the near term, commissioning of Malaysia plant would pressurize profits,” the brokerage firm said in result update.
In current calendar year 2017, the stock had outperformed the market by gaining 23% against 12% rise in the benchmark S&P BSE Sensex till April 25, 2017.
At 11:26 am; the stock was down 4.7% at Rs 1,036 on the BSE. A combined 994,594 shares changed hands on the counter on BSE and NSE so far.
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