CONCORDBIO - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📈 Fundamental Analysis: Concord Biotech Ltd (CONCORDBIO) Fundamental Rating: 4.1

🔍 Core Financial Highlights

Profitability

EPS: ₹35.5 ➜ steady earnings base

PAT Qtr YoY up 47.8% ➜ strong profit momentum

Returns

ROCE: 29.5% | ROE: 22.3% ➜ solid operational efficiency

Balance Sheet Strength

Debt-to-Equity: 0.00 ➜ debt-free, highly de-risked structure

Dividend Yield: 0.48% ➜ low payout — signals reinvestment focus

💡 Valuation Metrics

Metric Value Insight

P/E Ratio 51.6 Above industry avg (34.0) ➜ rich valuation

P/B Ratio ~10.59 (₹1,833 / ₹173) ➜ high premium to assets

PEG Ratio 1.75 moderately overvalued ➜ growth priced in

📉 Note: Market may be pricing in strong earnings visibility, but valuation leaves little margin for safety.

🧬 Business Model & Competitive Advantage

Operates in niche active pharmaceutical ingredients (APIs) and fermentation-based biopharma

Focus on immunosuppressants, anti-infectives, and oncology

Competitive Moats

Expertise in complex fermentation processes

High entry barriers for competitors

Robust global regulatory accreditations (USFDA, EU-GMP)

📊 Ownership Trends & Market Sentiment

FII Holding ↓ 0.25%

DII Holding ↓ 0.31% 🧭 Mild institutional caution may reflect premium valuations

📉 Technical Trends

RSI: 47.3 ➜ neutral zone

MACD: +16.4 ➜ positive momentum building

Trading at par with DMA 50 & slightly above DMA 200 ➜ trend support holding

✅ Suggested Entry Zone: ₹1,700–₹1,775 📌 Look for mild correction or broader market dip to enter

🧭 Long-Term Holding Thesis

📌 Debt-free, R&D-intensive biotech with scalable IP

📌 Exposure to global demand for immunosuppressant APIs

📌 Suitable for long-term thematic investors in pharma innovation

⚠️ Monitor quarterly performance for sustainability of profit spike. Growth path is compelling but entry should be valuation-aware.

If you’d like a comparative snapshot with peers like Suven Pharma or Divi’s Laboratories, I can put together a clean table for you. Let me know how you’d like to go deeper.

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