Biocon shares up 13% in a month; here's what analysts say

Shares of Biocon Ltd jumped 4.21 per cent in Wednesday's trade to hit a high of Rs 292.15. The stock was last seen trading 4.01 per cent higher at Rs 291.60. At this price, it has gained 13.02 per cent in the past one month.

The drugmaker recently gained traction after news agency Reuters reported that Biocon was involved in a process to develop its own weight-loss drug.

"The stock has not performed well. The company is trying to come out with new launches but there were certain headwinds. It has invested a huge amount in R&D. One needs to have a lot more patience in this stock compared to other pharma names," Gaurang Shah, Senior VP at Geojit Financial, told Business Today TV.

"Biocon has been quite a laggard. Immediate resistance will be at the Rs 290-300. If the stock moves above Rs 300, then we may see Rs 380 level," said Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 63.91. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 17.37. Earnings per share (EPS) stood at 0.29.

The scrip saw heavy trading volume today as around 7.91 lakh shares changed hands on BSE at the time of writing this story. The figure was higher than the two-week average volume of 3.52 lakh shares.

Turnover on the counter came at Rs 22.72 crore, commanding a market capitalisation (m-cap) of Rs 35,057.52 crore.

As of March 2024, promoters held a 60.64 per cent stake in the company.