The revised target suggests a potential downside of about 3% from Biocon’s closing price on Wednesday.
The foreign brokerage wrote in its note that Biocon has launched a ₹4,500 crore Qualified Institutional Placement (QIP) to raise funds for repaying financial obligations, including optionally convertible debentures (OCDs) issued to Goldman Sachs AIF.
HSBC said that a successful QIP would help ease Biocon’s debt burden, but emphasised that the scale-up of new biosimilars remains a critical factor.
The brokerage also said that FDA approval and the subsequent launch of insulin aspart in the US could serve as key catalysts.
While HSBC remains optimistic about a turnaround in Biocon’s biosimilars segment and upcoming product launches, it has revised its financial model to factor in higher operating expenses and depreciation related to new facilities, including the peptide API plant and the Vizag fermentation unit.
These adjustments could result in an 11–13% reduction in estimated earnings per share (EPS) for FY26–28, the brokerage said.
Out of the 18 analysts that have coverage on Biocon, 18 still have a ‘Buy’ rating on the stock, three say ‘Hold’, while five have a ‘Sell’ rating.
Shares of Biocon Ltd. are trading 0.73% higher on Thursday at ₹344.50. The stock is down 7% so far in 2025.
