CONCORDBIO - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.7

📊 CONCORDBIO shows moderate potential for swing trading. The stock is trading below both its 50 DMA (1,455 ₹) and 200 DMA (1,625 ₹), reflecting weak technical momentum. RSI at 36.9 indicates oversold conditions, while MACD (-30.9) confirms bearish sentiment. Fundamentally, the company is strong with zero debt, high ROCE (28.4%) and ROE (21.4%), but valuations are stretched with a P/E of 43.6 compared to industry PE of 30.6. Recent profit decline adds caution, though institutional support remains steady.

💡 Optimal Entry Price: Around 1,320–1,340 ₹ (near support zone close to 1,315 ₹).

🚪 Exit Strategy: If already holding, consider exiting near 1,450–1,470 ₹ (resistance at 50 DMA) or trail stop-loss below 1,300 ₹ to manage risk.

✅ Positive

• 📈 Strong ROCE (28.4%) and ROE (21.4%) highlight efficient capital use.
• 💰 Zero debt ensures financial stability.
• 📊 DII holding increased (+0.70%), showing domestic institutional confidence.

⚠️ Limitation

• 📉 Trading below 50 DMA and 200 DMA shows weak technical strength.
• 📊 High P/E (43.6) compared to industry PE (30.6), suggesting overvaluation.
• 📉 PEG ratio (1.63) indicates moderate growth relative to valuation.
• 📉 Dividend yield (0.80%) offers limited income support.

🚨 Company Negative News

• 📉 Quarterly profit variation (-36.3%) shows earnings decline.
• 📉 FII holding reduced (-1.07%), reflecting foreign investor caution.
• 📉 52-week return only 2.30%, showing weak overall performance.

🌟 Company Positive News

• 📈 PAT improved sequentially from 42.6 Cr. to 62.9 Cr. in the latest quarter.
• 💡 EPS at 30.7 ₹ supports earnings visibility.

🏭 Industry

• 📊 Industry PE at 30.6, lower than CONCORDBIO’s PE, suggesting sector trades at more reasonable valuations.
• 📈 Biopharma sector demand remains supportive, driven by healthcare and specialty drug growth.

📌 Conclusion

CONCORDBIO is a cautious swing trade candidate with oversold technicals and strong fundamentals. Entry near 1,320–1,340 ₹ offers a favorable risk-reward setup, while exits should be targeted around 1,450–1,470 ₹. Caution is advised due to declining profits, weak momentum, and stretched valuations, but zero debt and sector demand provide stability for short-term trades.

I can also prepare a comparison of CONCORDBIO with another biopharma stock to highlight relative swing trade strength.