Biocon: 750-775 May Be A Big Hurdle After 85% Rally In The Last 10 Months Amid Hopes Of Biosimilars & Supported By Exceptional Income

Trading Idea: Biocon

CMP: 732

Either sell around 740-755 OR on rise around 775-790

TGT: 712*-695-675-635*-609-565*-535-520-499*-575-430-410* (1-3/6M)

TSL> 765 OR > 795

Note: Consecutive closing (3 days) above 795 for any reason, Biocon may further rally up to 815*-840-885 & 915-935* in the near to long term (alternative bullish case scenario from the current trading level).

For Biocon: Consolidated basis

Q4FY16 TTM EPS: 44.81 (FY:16/Actual; but without exceptional income, it may be around 16.05)

Projected FWD EPS without any exceptional income: 18.75-21.55-24.85 (FY:17-19/Estimated)

Average PE: 20

As par BG metrics & current market volatility:

Present median value may be around: 740 (FY:16/TTM with exceptional income)

Projected fair value might be around: 480-515-555 (FY:17-19/FWD without any exceptional income)

BIOCON	EPS	BV	P/E	Low	High	Median	200-DEMA	10-DEMA
Q4FY16/TTM	44.81	202.74	20	684.84	794.36	739.60	523.33	704.1
FY17/FWD	18.75	233.75	20	443.00	513.85	478.42	523.33	704.1
FY18/FWD	21.55	268.55	20	474.93	550.88	512.90	523.33	704.1
FY19/FWD	24.85	308.75	20	510.00	591.56	550.78	523.33	704.1

Analytical Charts: