Biocon edges higher on govt's plans to support biotech industry

Biocon rose 0.58% to Rs 410.50 at 10:35 IST on BSE after Minister of State Dr. Jitendra Singh yesterday, 27 January 2015, said the government is keen to promote all kinds of upward activities in the biotech sector.

Meanwhile, the S&P BSE Sensex was down 51.83 points or 0.18% at 29,519.21.

On BSE, so far 13,136 shares were traded in the counter as against average daily volume of 1.09 lakh shares in the past one quarter.

The stock hit a high of Rs 411.90 and a low of Rs 407.80 so far during the day. The stock had hit a record high of Rs 553.70 on 4 July 2014. The stock had hit a 52-week low of Rs 402.45 on 7 January 2015.

The stock had underperformed the market over the past one month till 27 January 2015, falling 2.16% compared with Sensex's 8.55% rise. The scrip had also underperformed the market in past one quarter, declining 13.09% as against Sensex's 10.53% rise.

The mid-cap biotechnology company has equity capital of Rs 100 crore. Face value per share is Rs 5.

The Minister of State (Independent Charge) of the Ministry of Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr. Jitendra Singh yesterday, 27 January 2015, said that the government is keen to promote all kinds of upward activities in the biotech sector and said that the suggestions offered by the Association of Biotechnology Led Enterprises (ABLE) would be given due consideration and dealt with a positive approach. In its pre-Budget memorandum submitted to the government, ABLE has made several recommendations to support the biotechnology industry. These include deduction of current tax incentives of 200% to be increased to 300% with a validity of three years and extension of 10 years of tax holiday for biotech/farming establishments by another 2 years. Invoking the Make in India agenda of the government, the memorandum also pleads for the indigenously made products to be given 15% to 25% weighted advantage over imported products in all government tenders.

Biocon's consolidated net profit fell 13.4% to Rs 90.93 crore on 8.3% rise in total income to Rs 778.99 crore in Q3 December 2014 over Q3 December 2013.

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