Sell Biocon With Stoploss Of Rs 257
Stock market analysts are of the view that investors can sell Biocon Ltd stock with a target price between Rs 250-245.
According to them, investors can sell the stock below Rs 253 with a strict stop loss of Rs 257.
If the stock fell below Rs 240, it may see more weakness.
Today (Oct 28), the stock opened at Rs 256 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 7.91 and 32.49 respectively. The share price has seen a 52-week high of Rs 284.40 and a low of Rs 86.55 on BSE.
After selling the stock, the interested investors can enter the stock again at a low price, for medium or long term prospective.
Biocon, which has strategic focus on biopharmaceuticals and research services plans, predicts a sturdy organic growth for the remaining financial. But, the company has not denied entering into the inorganic sector as well.
The company posted a phenomenal growth in itsstandalone net profit for the three month period ended September 30, 2009. During the period, the company's profit grew 85.98% to Rs 623.60 million as against Rs 335.30 million in the same quarter previous year.
Net sales during the period surged 22.05% to Rs 3,011.00 million, whereas total income climbed up by 17.78% to Rs 3,124.40 million.
Hardly 5-months after it forayed into an exclusive product growth and supply agreement with worldwide generic drug major Mylan, the country's largest biotech firm, Biocon has started getting landmark payments from its US-based associate.