pharma

Biocon

BIOCON · Nifty 50

₹411.85

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionpharma sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score75/100 (STRONG). 0 positive flags, 5 concerns.

Historical Context37 similar technical setups. Average outcome: -8.8% decline. 0% positive.

Fundamental

75/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Biocon scores 75/100 on fundamentals (strong). Biocon: BROAD EXPANSION regime.

Fundamental Score: 75/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 1.1% broken into three drivers. Each shows how efficiently the company generates returns.

ROE1.1%=

2.3%Net Margin

0.3xTurnover

1.9xLeverage

ROE of 1.13% is modest margin-driven and stable. Net margin of 2.3% × asset turnover of 0.26x × leverage of 1.9x.

What This Means

Net margin of 2.3% means the company keeps ₹2.3 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.26x means the company generates ₹0.26 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 1.9x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

66.2%

Operating

8.6%

Net

2.3%

declining

Gross margin 66.2% → operating margin 8.6% → net margin 2.3%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 5.2x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

STRETCHED

Interest covered only 1.5x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 4.5x is high — monitor leverage.

Free Cash Flow

MODERATE

FCF margin at 0.5% — barely positive. Limited cash after capex.

Peer Comparison

Biocon is compared against 10 peers in the pharma sector.

ALKEM AUROPHARMA CIPLA DIVISLAB DRREDDY GLAND GLENMARK JBCHEPHARM LAURUSLABS LUPIN

Key Watchpoints

🟢

Breaks above ₹432 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹391 (-5%)

Further downside risk

🟢

Pharma sector entering leadership

Sector rotation signal

Detected Patterns

✅ High Earnings Quality: Cash flow covers earnings 5.2x — strong cash conversion

Risk Flags

🔴 2 Critical⚠️ 3 Warning5 total flags

🔴Unusual items are 104% of net income

Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

🔴Cash covers only 17% of current liabilities

Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Special charges present in income statement

Earnings Quality

Special charges of ₹403K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Goodwill is 29% of total assets

Balance Sheet

Significant goodwill from acquisitions. Monitor for impairment risk.

⚠️Working capital changes are 57% of operating cash flow

Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

✅ Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio

149.1UNAVAILABLE

P/B Ratio

2.0HIGH

Market Cap

₹6785735.7L CrHIGH

From 52W High

94% of high

Sector Peers

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