Biocon has reported fantastic results in this June quarter. Can I look to buy more of the stock at current prices?

Biocon had a very good quarter in June reporting 86% growth in net profits to Rs.223 crore for the June quarter. Total revenues for the period were also up by 25% at Rs.1466 crore. The sharp growth in Biocon has been an outcome of its consistent investment in bio-similar products, where the company has been investing for the last few years. During the last one year, Biocon has managed to expand its footprint across emerging markets and developed markets.

Additionally, the sales of active pharma ingredients (APIs) and small molecules also grew by 20% during the quarter. Biocon straddles generic APIs like Statins, immune Suppressants, and specialty molecules. At the current price of Rs.242, the stock is still way too expensively valued. However, the stock has corrected nearly 33% from peak levels and that gives a margin of safety. You can look to accumulate on the back of good results and also on the back of the fact that the price correction has been quit steep. It is worth buying now.