By Aditya Raghunath
Investing.com -- Biopharma company Biocon Ltd. (NS: BION ) has seen a very tepid 2021 so far. The stock has fallen 12.18% this year, and has fallen a little over 5.2% in the last 12 months.
Will the stock move up? Brokerages are divided over the future of the stock. CLSA says the stock will fall a lot more. It has a target of Rs 260 on the stock, a potential drop of around 36% from its July 16 closing price of Rs 409. Its primary reasons are:
- Negative cash flow for the eighth consecutive year in FY21.
- Operating cash flow fell 24% year-on-year. For FY22, it is at Rs 2,220 crore of capex guidance which suggests a high capex intensity for this year as well.
- Biologics business margins have fallen which has hurt profitability.
- There is no clarity on any listing plans for the biologics business.
While CLSA is negative, PhillipCapital is positive on the stock with a target price of Rs 500. The brokerage revised its rating from “neutral” to “buy” after the United States Food and Drug Administration (US FDA) slapped Amgen (NASDAQ: AMGN ), the pharma company that sells Neulasta in the US with a misbranding complaint. This effectively means that the target market for Biocon’s product, Pegfilgrastim, in this category doubles.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
It is falling day by day any new comment on this. whole mkt is bullish but this is falling day by day. today it is at 352Like 0
sell if you must, buy if you can...Like 1
Get Free bitcoin, without investing anything, download PI network and bee 🐝 app from play store or app store. Its the future currency, moving at a very high speed. User code nasirdarjiLike 1
sustain above 418 then may touch 460Like 1
I am totally disagree with writer. in one line I would ask him if he is given this company will he accept or not? it's as simple as that.Like 0
Biocon start to entering Bullish zone bcause CMP is above 8,13 EMA & 21,55 EMA Goden Crossover done last day. So Above 400 Bullishness StartLike 0
416 ABOVE BUY MY ENTRY 398 SL , TGT 450-460Like 1
This guy is should stop writing, honestly bro you gotta find something else to do, you are not good at this at all, i am not holding biocon however i dont see it falling cause its revenue increases every day, the lady makes jhunjhun walla envious on a open investors meet, she is something, shrinking margins aren’t a deal ******** revenue is of the charts, cash flow may be neagtive but thats cause of growth bro, capex is important, basicly i see biocon making new ATH, so you take CLSA on their words, they are like nostradameus :PLike 6
Biocon has made substantial base and now ready to make new high.Like 5