The two stocks recommended by SMC Global Securities’ Research Team this week are Biocon and Chambal Fertilisers & Chemicals. These two stocks have shown great potential with positive financial estimates for the next two financial years. So, let’s go through the details of the two stock recommendations for the period between January 27, 2025 and January 31, 2025.
Biocon Limited
Biocon share price is ₹388.45 (as on January 24, 2025) and its target price is set at ₹436 with an upside potential of 12%.

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Biocon Limited: Investment Rationale
- Biocon is an innovation-led global biopharmaceuticals company, engaged in the production of therapies for chronic conditions like diabetes, cancer, and autoimmune.
- It has developed and commercialized novel biologics, biosimilars, and complex small molecule APIs in India and several key global markets as well as Generic Formulations in the US, Europe & key emerging markets. It also has a pipeline of promising novel assets in immunotherapy under development.
- During Q2 FY25, it reported Operating Revenues of ₹3,590 crores reflecting YoY growth of 8%, and core EBITDA and EBITDA margins of 28% and 20% respectively remain healthy. Moreover, it has robust performance in the Biosimilars business, up 19% driven by strong market share gains in our US Oncology and Insulins franchises.
- On the emerging markets front, Biocon Biologics continues to expand the depth and breadth of its patient reach and has secured market-leading shares in several major countries for example, 74% for Trastuzumab and 86% for Bevacizumab in South Africa.
- It has seen strong demand for its insulin franchise, especially in Mexico and for Adalimumab and Etanercept in Saudi Arabia. It had 15 new launches this quarter in the AFMET(Africa, Middle East, and Turkey) and LATAM regions including Bevacizumab and Pegfilgrastim in Saudi Arabia. These new launches will be a key driver of growth going forward.
- Syngene, a subsidiary of Biocon, has returned to growth and is expected to maintain positive momentum in the coming months, particularly driven by its Discovery Services and Biomanufacturing CMO (Contract Manufacturing Organization) businesses. However, its Generics business has been struggling due to pressures on pricing and demand, leading to suppressed performance.
- The management of the company anticipates a recovery in the Generics segment during the second half of the fiscal year, driven by new product launches in the next two quarters.
- This includes the launch of Liraglutide in the U.K. in Q3FY25, as well as injectables like Micafungin and Daptomycin in the United States. Additionally, sales are expected to benefit from the ongoing impact of Cost Improvement Programs (CIPs).
The promoter’s shareholding is highest in Biocon at 60.64%.
Biocon Limited: Valuation
Looking ahead, the company remains focused on consolidating the business and leveraging its vertically integrated model, and expanding its global footprint to drive value for the organization. The management of the company is focused on delivering affordable healthcare solutions and expanding its global footprint. It has a strong pipeline of products in areas like oncology, diabetes, and immunology, and is investing in innovative technologies.
Despite challenges in its Generics business due to pricing pressures, Biocon expects growth from new product launches and ongoing cost improvement initiatives. Thus, it is expected that the stock may see a price target of ₹436 in 8 to 10 months’ time frame on two-year average P/BVx of 2.01x and FY26 BVPS of ₹271.02E.
Biocon Limited: Risk
- Intense Competition
- Economic Slowdown
Chambal Fertilisers & Chemicals Limited
Chambal Fertilisers & Chemicals share price is ₹496.10 (as on January 24, 2025) and its target price is set at ₹585 with an upside potential of 18%.

Chambal Fertilisers & Chemicals Limited: Investment Rationale
- Chambal Fertilisers & Chemicals manufactures ammonia, urea, pesticides, and other products for farming and other agricultural applications. It produces nearly 12% of the country’s total urea.
- Its three state-of-the-art nitrogenous fertilizer plants, located in Gadepan, Kota (Rajasthan), have a combined annual production capacity of around 3.4 million MT.
- It caters to farmers across 14 states in India, through its flagship ‘Uttam’ brand, the company offers a one-stop solution for farming needs, providing urea, DAP, MOP, NPK fertilizers, crop protection chemicals, and specialty nutrients.
- The company is setting up a plant to manufacture Technical Ammonium Nitrate (TAN) at its existing site at Gadepan, District Kota, Rajasthan with a capacity of approximately 2,40,000 Metric Tons (MT) per annum. The project will also include a plant to manufacture approximately 1,80,000 MT per annum of weak nitric acid (WNA). The cost of the project is ₹1,645 crore and is expected to be completed by January 2026.
- During the H1 FY2025, the company reported improved performance of its Urea and CPC & SN business. The performance of P&K Fertilisers was impacted due to lower DAP volumes. Its Joint venture Company, IMACID, reported higher margins and volume. All these helped the company report consolidate PAT growth of 37% to ₹985 crores.
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- It has launched 10 new products in H1 FY 25 covering Weedicide, Fungicide, and Seed treatment and has a strong pipeline of 2-3 new products. It is working on new biological products, especially for Fungicides & Nematicide to be launched over a period of next financial year.
- Its strategy continues to focus on creating partnerships and alliances for introducing better chemistries and increasing the width of its offerings in its channels. Geographic diversification has also been a part of this strategy and has been successfully executed.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
- The Company and The Energy and Resources Institute (TERI) signed an Agreement to establish the “CFCL-TERI Centre of Excellence for Advanced and Sustainable Agriculture Solutions. This aligns closely with the Government of India’s BioE3 initiative which aims to promote biomanufacturing industries.
- By leveraging TERI’s research capabilities and CFCL’s market expertise, it aims to create innovative, eco-friendly agricultural solutions that enhance soil and environmental health, address climate resilience, and support food security.
In the overall shareholding of Chambal Fertilisers & Chemicals, promoters have the highest shareholding of 60.4%.
Chambal Fertilisers & Chemicals Limited: Valuation
The company produces 12% of the country’s total urea production. All its urea manufacturing units are operating at optimal capacity. Its Crop Protection Chemicals & Specialty Nutrients business is also growing very fast, helped by new product launches.
Its focus on introducing improved products and widening of its offerings in its channels indicates future growth visibility. Thus, it is expected that the stock may see a price target of ₹585 in 8 to 10 months’ time frame on current P/BV of 2.42x and FY26 BVPS of ₹241.70E
Chambal Fertilisers & Chemicals Limited: Risk
- Adverse Climate Condition
- Economic Slowdown
Conclusion
These two stocks, one from the pharma sector and the other from the fertilizer sector can reach their target price in the coming 8 to 10 months. However, it is always better if you do your analysis before investing and set a stop-loss target. To keep track of your invested stocks, open demat account with SMC Global Securities and invest on the go.
Reference:
https://www.smctradeonline.com/research/wise-money/241
Author: All Content is verified by SMC Global Securities.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account