Looking for fundamental growth story? Pay attention to Biocon
02-05-2014 • About Biocon (
$BIOCON) • By InTwits
Biocon is a fast-growing stock in Biotechnology industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Biocon showed fast growth in the last financial year. The company's revenue surged on 15.8% in FY2014. Together with revenue growth Biocon also managed to keep EBITDA growth. EBITDA grew 29.8% for the same period.
In the longer period Biocon showed fast revenue growth of 17.1% from FY2011 to FY2014 annually. EBITDA surged on 12.0% from FY2011 to FY2014 annually.
Biocon ($BIOCON) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 35,814 | 17,898 | 20,490 | 24,853 | 28,773 |
|---|
| Revenue growth, % | | -50.0% | 14.5% | 21.3% | 15.8% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 4,817 | 5,270 | 5,187 | 5,701 | 7,398 |
|---|
| EBITDA growth, % | | 9.4% | -1.6% | 9.9% | 29.8% |
|---|
| EBITDA margin, % | 13.4% | 29.4% | 25.3% | 22.9% | 25.7% |
|---|
| Net Income | 2,932 | 3,675 | 3,384 | 5,089 | 4,287 |
|---|
| Net Income margin, % | 8.19% | 20.5% | 16.5% | 20.5% | 14.9% |
|---|
| |
| CAPEX | 1,670 | 1,890 | 2,745 | 3,586 | 7,885 |
|---|
| CAPEX/Revenue, % | 4.66% | 10.6% | 13.4% | 14.4% | 27.4% |
|---|
| Debt | 5,136 | 3,132 | 2,571 | 2,673 | 8,497 |
|---|
| Cash | 1,399 | 2,984 | 2,836 | 4,735 | 5,564 |
|---|
| Net Debt/EBITDA | 0.8x | 0.0x | -0.1x | -0.4x | 0.4x |
|---|
| |
| ROIC, % | 15.2% | 15.3% | 13.5% | 13.9% | 15.4% |
|---|
| ROE, % | 17.9% | 19.4% | 15.7% | 20.5% | 15.0% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. EBITDA margin surged on 2.80 pp from 22.9% to 25.7% in FY2014. If we look for the longer period the company showed big decline in EBITDA margin of 3.70 pp from 29.4% in FY2011 to 25.7% in FY2014.
Biocon shows attractive ROIC at 15.4% for the last 12 months which assumes stable development model. During the last three years it increased slightly - it was 15.3% in FY2011. It's average level of ROIC for the last three years was 14.3%.
The company showed big decline in Net Income margin of 5.60 pp from 20.5% to 14.9% in FY2014. In the longer period the company showed big decline in Net Income margin of 5.60 pp from 20.5% in FY2011 to 14.9% in FY2014.
Biocon operates at ROE of 15.0%. Average ROE for the last three years was 17.1%.
Capital expenditures (CAPEX)
To fuel this fast growth Biocon had to invest in CAPEX.The company's CAPEX/Revenue was 27.4% in FY2014. CAPEX/Revenue surged on 16.8 pp from 10.6% in FY2011 to 27.4% in FY2014. Average CAPEX/Revenue for the last three years was 18.4%.
Leverage (Debt)
Biocon has low debt level at 0.4x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period the company showed fast leverage growth of 0.37x from 0.03x in FY2011 to 0.40x in FY2014.
Management team
Biocon is run by Arun Suresh Chandavarkar as a CEO.
