Biocon Ltd.
ISIN: INE376G01013 • Market Cap: ₹67,518 Cr
The 5-Pillar Quality Audit for Biocon Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (20.4%), Return on Capital Employed (3.8%), and equity compounding (1.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.44 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (5.5%) and 3Y PAT CAGR (-25.9%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 136.32 vs PEG of 3.82 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 44.7%, backed by 31.5% institutional ownership.
Key Fundamental Strengths
Deep Institutional Sponsorship (31.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 31.5%, providing strong governance scrutiny.
Consistent Market Standing (Large Cap)
Established player in the Healthcare sector with an overall fundamental quality score of 53/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 3.8%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Priced for Perfection (P/E: 136.32)
A steep valuation multiple of 136.32 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking BIOCON against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 53/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Healthcare Sector Peer Comparison
Compare BIOCON directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Biocon Ltd. (BIOCON)Current | 53/100 | ₹67,518 Cr | 136.32 | 3.8% | 0.44 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Biocon Ltd.
Q:What is the 5-Pillar Fundamental Score for Biocon Ltd. (BIOCON)?
Biocon Ltd. has a RupeeTools Fundamental Score of 53/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (48/100), Financial Health (74/100), Growth (35/100), Valuation (25/100), and Ownership Quality (78/100).
Q:Is BIOCON fundamentally strong for long-term investment?
BIOCON currently holds a moderate quality rating of 53/100. While it operates in the Healthcare sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does BIOCON pass the Coffee Can Investing filter?
No. BIOCON does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does BIOCON compare against other Healthcare peers?
Within India's Healthcare sector, BIOCON trades at a P/E of 136.32 and generates an ROCE of 3.8%. Compare its 5-Pillar score of 53/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.