Biocon Limited Intrinsic Value
BIOCON · Healthcare · Current price ₹349.2
Is Biocon Limited undervalued?
We estimate the fair value of Biocon Limited at ₹110 per share, against a market price of ₹391. That puts the share price about -71.8% above our estimate, at low confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Fair multiple (P/E) (₹110). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Biocon Limited spans ₹99 to ₹121. That range is wide, which is the honest signal here: read the range rather than the single number. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Margin of safety
Value investors look for a margin of safety: a discount to estimated value that absorbs being wrong. At ₹391 against an estimated value of ₹110, Biocon Limited trades at -71.8%, i.e. a premium to our estimate. How much margin to demand depends on how much you trust the inputs, which is what the confidence band below is for.
How we got this fair value
Every number below is part of the same estimate for Biocon Limited. Nothing here is a target price or a forecast of where the share price will go.
The inputs are thin or the models disagree sharply. This is our least reliable kind of estimate, so read the range rather than the single number.
Estimate range ₹99 – ₹121
Why this method for this business
Biocon is an asset-light compounder in the pharmaceutical sector, where earnings power and a durable moat are key. A relative P/E model captures its earnings potential and sector positioning, while a DCF model accounts for its growth and discount rate assumptions.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
- ev_ebitda is less relevant for a high-growth, asset-light business with strong earnings power
- forward-looking DCF is not used due to the lack of reliable forward EPS data and the volatility of the sector
What was missing
- Lack of forward EPS data for precise DCF modeling
- Limited historical data on sector multiples for more accurate relative P/E analysis
What drives it
15 inputs, grouped by how strong each claim is
- Sector-median P/E
- 34.81×
- Peers used
- 30
- EPS (TTM)
- 3.36 ₹/share
- Own-history median P/E
- 53.6×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Term: quality
- -8.8%
- Term: growth
- -3.9%
- Term: capital_allocation
- -12.6%
- Term: financial_strength
- +4.8%
- Term: history
- +16.2%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 37/100 (weak/erratic returns) → discount
weak ~2% CAGR (ROCE 9% < 12% hurdle (growth not value-accretive)) → discount
capital allocation: falling ROCE / weak cash generation → discount
financial strength: effectively debt-free → premium
history: market paid +54% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- -5.6%
- Fair-multiple confidence
- 71%
- Fair P/E
- 32.86×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Biocon Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Biocon Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.