Biocon Shares Fall As Q1 Revenue Misses Estimates
The stock fell as much as 1.92% in early trade to Rs 332.65 apiece on the NSE.
Shares of Biocon Ltd. erased their opening gains and fell on Friday as it posted a flat revenue in the first quarter of the current financial year, missing analysts' estimates.
Had it not been for the surge in its other income on account of the strategic collaboration between Biocon Biologics and Eris Lifesciences, the company would have reported a loss. It posted an other income of Rs 1,135 crore as against Rs 94 crore in the same quarter last year, according to an exchange filing.
The biopharmaceutical company's profit jumped nearly sixfold to Rs 861.8 crore in the June quarter. Its revenue rose 0.3% to Rs 3,432.90 crore. Analysts had projected a revenue of Rs 3,950 crore.
In its post-earnings investor call, the company said its subdued financial performance came in line with its expectations and previous guidance. Biocon expects the September quarter to be muted for generic business, with performance building in the second half of the year.
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On the NSE, Biocon's stock fell as much as 1.92% in early trade to Rs 332.65 apiece, the lowest since Aug. 6. It was trading 0.4% lower at Rs 337.90 per share, compared to a 1.01% advance in the benchmark Nifty at 10:07 a.m.
The share price has risen 35.21% on a year-to-date basis and 30.2% in the last 12 months. The total traded volume so far in the day stood at 1.39 times its 30-day average. The relative strength index was at 43.83.
Out of the 17 analysts tracking the company, seven have a 'buy' rating on the stock, as many suggest 'sell' and three recommend 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 5.9%.
