Biocon Limited (BIOCON.NS) stock analysis

In our weekly check, Biocon Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9.

About Biocon Limited

Biocon Limited is a Healthcare company (Biotechnology) based in India, listed on NSE as BIOCON.NS.

What our checks show for BIOCON.NS

Red flags

• Operating profit covers interest only 1.6 times: a weak year could make the payments hard.
• The net margin fell by 5.1 points over 5 years, to 2.9%: the company keeps less of each sale as profit.
• The gross margin fell by 18.9 points, to 42.4%: costs are rising faster than prices.
• The net margin is only 2.9%: little room if costs rise.
• Free cash flow is negative (-3% of revenue): the business spends more cash than it brings in.
• The price is 104 times earnings (P/E): the market already pays for a lot of future growth.
• The stock has fallen as much as 72% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Net debt is 3.9x a year of EBITDA (debt/equity 0.44). That limits room in a downturn and raises refinancing risk.
• Earnings per share fell 4.3% a year over the last 3 years.
• The share count grew by 14.3% in 2 years: each shareholder owns a smaller slice.

Strengths

• Operating cash flow is 2.58x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 68.2% a year over the next years.
• Analysts expect the net margin to improve by 6.6 points from today's 2.9%.
• Revenue grew 15.7% a year over the last 3 years.
• The dividend takes 14% of profit: there is a cushion.
• Beta 0.32: the stock usually moves less than the market.

Next earnings report: 2026-11-04

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Questions

What grade does Biocon Limited (BIOCON.NS) have?

In our weekly check, Biocon Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BIOCON.NS stock?

This week's biggest flags for Biocon Limited: Weak interest cover, Margins falling, Gross margin falling. In total 12 of 25 checks show a warning or a red flag.

What does Biocon Limited do?

Biocon Limited is a Healthcare company (Biotechnology) based in India, listed on NSE as BIOCON.NS.

When does Biocon Limited report earnings next?

The next earnings report is expected on 2026-11-04. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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