When it comes to pharma related stocks, Biocon is another stock which is very dependable with transparent management ; the house of Mazumdars with a dynamic MD in the chair. 100% payment of dividend against the FV of Rs.5/- virtually debt free company with price to earning of just 14 against the industry PE of 31. It is finding consistency in the sales.
With promoters holding of more than 45% and participation by mutual funds, QFI, FIs/Bank, its average profit generating efficiency level is 13% during the past five year. As for equity capital it is just 100 core while its reserves have witnessed the rise of over 34% during the year Mar 2011 to Mar 2015.
Biocon is under priced for now. It is suggested that one should enter in this stock at the current level as also those who are invested already should average on it provided (in their case) it has come down to around 15% of buying price.
Invest n be partner to the rewards.