CONCORDBIO - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Core Financials

Earnings & Profitability: EPS of ₹34.2 and ROE of 21.4% reflect solid profitability. ROCE at 28.4% is strong, indicating efficient capital deployment.

Quarterly PAT: Dropped from ₹142 Cr to ₹42.6 Cr (−26.9%), suggesting a temporary dip or one-off impact.

Debt Profile: Debt-to-equity of 0.00 — completely debt-free, which enhances financial resilience.

Cash Flow: While not explicitly stated, strong margins and zero debt imply healthy operating cash flows.

💰 Valuation Indicators

Metric Value Insight

P/E Ratio 48.9 Expensive vs. industry PE (33.4)

P/B Ratio ~9.65 High premium over book value

PEG Ratio 1.82 Fairly valued relative to growth

Dividend Yield 0.65% Modest, not a major income play

Valuation is elevated, but supported by strong return metrics and zero debt.

🧪 Business Model & Competitive Advantage

Concord Biotech is a mid-cap player in the biotechnology space, specializing in fermentation-based APIs and niche therapeutic segments. Key strengths include

Strong export footprint and regulatory approvals (USFDA, EU GMP)

1

High-margin product portfolio with 30.2% profit margin

2

Strategic positioning in immunosuppressants and anti-infectives

The company has delivered 21.1% returns over the past year with 18.2% quarterly revenue growth

2

.

📉 Technical & Sentiment Indicators

RSI: 47.6 – Neutral zone, no strong momentum.

MACD: -22.6 – Bearish crossover, indicating short-term weakness.

Volume: Slightly below weekly average, suggesting reduced interest.

DMA 50 & 200: Current price is below both, confirming bearish undertone.

Short-term technicals suggest caution, with support near ₹1,620 and resistance around ₹1,705

2

.

💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹1,580–₹1,620, near Fibonacci retracement and recent support levels

2

Current Price ₹1,670: Slightly above ideal entry, but still reasonable for accumulation.

🕰️ Long-Term Holding

Hold or Accumulate on Dips: Strong ROE/ROCE, zero debt, and niche biotech positioning make it a promising long-term play.

Monitor Earnings Consistency & Institutional Sentiment: Recent FII/DII outflows suggest short-term caution.

You can explore Concord Biotech’s share price targets and technical outlook or review its recent EU GMP inspection success for deeper insights. Let me know if you'd like a peer comparison with Syngene or Neuland Labs.

1

www.sharekhan.com

2

stockpricearchive.com

Edit in a page