⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CONCORDBIO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | CONCORDBIO | Market Cap | 11,927 Cr. | Current Price | 1,140 ₹ | High / Low | 2,452 ₹ |
| Stock P/E | 37.1 | Book Value | 174 ₹ | Dividend Yield | 0.94 % | ROCE | 28.4 % |
| ROE | 21.4 % | Face Value | 1.00 ₹ | DMA 50 | 1,336 ₹ | DMA 200 | 1,542 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.03 % | PAT Qtr | 62.9 Cr. | PAT Prev Qtr | 42.6 Cr. |
| RSI | 23.3 | MACD | -50.7 | Volume | 54,759 | Avg Vol 1Wk | 1,17,322 |
| Low price | 1,128 ₹ | High price | 2,452 ₹ | PEG Ratio | 1.38 | Debt to equity | 0.00 |
| 52w Index | 0.87 % | Qtr Profit Var | -36.3 % | EPS | 30.7 ₹ | Industry PE | 29.0 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT rose from 42.6 Cr. to 62.9 Cr., but YoY profit variation shows -36.3% decline, indicating volatility.
- Profit Margins: ROE at 21.4% and ROCE at 28.4% reflect decent efficiency, though lower than top-tier peers.
- Debt Ratios: Debt-to-equity at 0.00, highlighting a debt-free balance sheet.
- Cash Flows: Dividend yield at 0.94% is modest, suggesting reinvestment focus rather than high payouts.
💹 Valuation Indicators
- P/E Ratio: 37.1 vs Industry PE of 29.0, showing premium valuation.
- P/B Ratio: Current Price 1,140 ₹ / Book Value 174 ₹ ≈ 6.55, moderately high.
- PEG Ratio: 1.38, suggesting valuation is aligned with growth expectations.
- Intrinsic Value: Estimated fair value around 1,050–1,100 ₹, making current price slightly above fair zone.
🏢 Business Model & Competitive Advantage
- Concord Biotech operates in niche biopharmaceuticals, focusing on fermentation-based APIs and immunosuppressants.
- Strong R&D capabilities and global regulatory approvals provide competitive edge.
- High entry barriers due to specialized manufacturing and compliance requirements.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Accumulation range between 1,080–1,120 ₹, closer to intrinsic value and near support levels.
- Long-Term Holding: Suitable for long-term investors given debt-free status and niche positioning, but profit volatility requires cautious accumulation.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Strong ROCE and ROE compared to industry averages.
- Specialized biopharma focus with global regulatory approvals.
⚠️ Limitation
- Premium valuation with P/E above industry average.
- Profit volatility (-36.3% variation) raises concerns on consistency.
- Weak technicals: RSI at 23.3 and MACD at -50.7 indicate oversold bearish trend.
📉 Company Negative News
- Decline in FII holding (-0.45%) shows reduced foreign investor confidence.
- Stock trading below DMA 50 and DMA 200, reflecting weak momentum.
📈 Company Positive News
- DII holdings increased slightly (+0.03%), showing domestic support.
- Quarterly PAT improvement from previous quarter (42.6 Cr. to 62.9 Cr.).
🏭 Industry
- Biopharma industry PE at 29.0, lower than Concord’s 37.1, suggesting relative overvaluation.
- Global demand for niche APIs and immunosuppressants provides long-term growth tailwinds.
🔎 Conclusion
- Concord Biotech is fundamentally strong with debt-free operations and decent return ratios.
- Valuation is slightly expensive compared to industry, and profit volatility is a concern.
- Best suited for long-term investors with cautious entry around 1,080–1,120 ₹; accumulation strategy recommended.
Would you like me to also highlight technical support and resistance levels based on RSI/MACD trends to refine the entry timing?