Hold Biocon: Reliance Money
Published on Thursday, April 2nd, 2009 at 7:14 PMAuthor: admin (5507 Articles)
Reliance Money has recommended a hold rating on Biocon in its April 2, 2009 research report.
“Biocon has recently started commercial operations under the BMS pact which was in line with the collaborative research pact entered during March 2007. With the commissioning of this new research facility, we expect incremental revenue flowing from Syngene. Biocon’s BMS pact would add incremental revenue of Rs 800 million during FY10E. We anticipate peak revenues worth Rs 1200 million during FY11E getting materialized with 450 FTEs from the current 270 researchers.”
“During 9mFY09, Biocon had reported 46% growth in revenues to Rs 11484.4 million and OPM at 21.9%, which were better than our expectation. But the forex loss of Rs 1058 million has dragged down the net profit to Rs 680 million. However, looking at the series of revenue triggers in the pipeline we still maintain our positive stance on Biocon and recommend to HOLD,” says Reliance Money’s research report.
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