Concord Biotech Limited is a pharmaceutical company that focuses on researching and developing new medicines. They specialize in making important ingredients for medicines using a process called fermentation, particularly for treating diseases like cancer and conditions where the immune system needs to be controlled. This company plays a significant role in the healthcare industry by creating innovative solutions to improve people’s health, both in India and around the world.
Looking beyond just numbers, Concord Biotech’s story is about how it adapts to changes in the market and the economy. It’s not just about making money; it’s about making a positive impact on people’s lives by providing better healthcare options.
Now, the big question is whether Concord Biotech will reach a significant milestone in its stock price, hitting 10k.
About Concord Biotech
Established in 1984, Concord Biotech Limited is an Indian pharmaceutical company that focuses on research and development in the biopharmaceutical sector. They specialize in manufacturing fermentation-based Active Pharmaceutical Ingredients (APIs) used in various therapeutic areas such as immunosuppressants, oncology, and anti-infectives. Additionally, they produce formulations for critical care applications in areas like immunosuppressants and nephrology.
Concord Biotech has gained significant market share, holding over 20% volume market share in fermentation-based APIs including products like mupirocin, sirolimus, tacrolimus, mycophenolate sodium, and cyclosporine. They boast a diverse product portfolio, with 23 APIs and 53 formulations as of June 2023.
With three manufacturing facilities in Gujarat, Concord Biotech has a robust domestic and international presence. They market their products across 20 states and 5 union territories in India and have customers in over 70 countries globally.
The company prioritizes research and development, with dedicated units approved by DSIR, India, and has filed numerous patents for its APIs and formulations. Concord Biotech made headlines in August 2023 with its successful IPO, raising 1551 Crs through an offer for sale and listing on the stock exchange.
Recent News Around Concord Biotech
- With over two decades of experience in the industry, Concord Biotech has demonstrated a track record of developing niche and complex molecules. They hold a leadership position for select molecules in global markets.
- The company operates with a fermentation capacity of 1250 M3 across two API facilities and specializes in manufacturing 25 fermented-based APIs.
- Concord Biotech is recognized as one of the leading global developers and manufacturers in this domain, particularly in immunosuppressants, oncology, and anti-infectives, boasting a significant market share based on volume in 2022. These recent developments underscore Concord Biotech’s steadfast commitment to innovation, quality, and leadership in the pharmaceutical sector.
Concord Biotech Q3 Fy2024 Key Points And Summary:
Here are the Q3 and 9MFY24 key operational highlights for Concord Biotech:
- API Revenue in Q3FY24 stood at ₹217.2 Cr, marking a 26% increase from ₹172.3 Cr in Q3FY23, but for the 9MFY24, it decreased to ₹527.7 Cr from ₹562.6 Cr.
- Formulation Revenue saw a decline in Q3FY24 to ₹23.5 Cr compared to ₹68.5 Cr in Q3FY23, and for 9MFY24, it decreased to ₹52.9 Cr from ₹135.4 Cr in 9MFY23.
- Total Revenue remained almost stable in Q3FY24 at ₹240.7 Cr compared to ₹240.8 Cr in Q3FY23, while for the 9MFY24, it grew to ₹580.6 Cr from ₹698.0 Cr in 9MFY23.
- Domestic Revenue increased slightly in Q3FY24 to ₹130.2 Cr from ₹128.9 Cr in Q3FY23, and for the 9MFY24, it grew to ₹299.7 Cr from ₹374.5 Cr in 9MFY23.
- Exports Revenue witnessed a slight decrease in Q3FY24 to ₹110.5 Cr from ₹111.9 Cr in Q3FY23, but for the 9MFY24, it increased to ₹280.9 Cr from ₹323.5 Cr in 9MFY23.
Concord Biotech Share Price Target 2024 To 2030
Concord Biotech Share Price Target 2024
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| April | ₹1,762.07 | ₹1,532.24 |
| May | ₹1,736.03 | ₹1,509.59 |
| June | ₹1,798.53 | ₹1,563.94 |
| July | ₹1,780.55 | ₹1,548.30 |
| August | ₹1,851.77 | ₹1,610.23 |
| September | ₹1,925.84 | ₹1,674.64 |
| October | ₹1,888.08 | ₹1,641.81 |
| November | ₹1,944.72 | ₹1,691.06 |
| December | ₹1,993.34 | ₹1,733.34 |
In 2024, Concord Biotech’s share prices are expected to fluctuate within a certain range. The maximum price in April is expected to reach ₹1,762.07, while the minimum is anticipated to be around ₹1,532.24. As the year progresses, the expected prices will gradually increase, with the maximum price reaching ₹1,993.34 and the minimum rising to ₹1,733.34 by December. Investors can anticipate the stock to follow this upward trend, with fluctuations within these expected price ranges as the market dynamics evolve throughout the year.
Concord Biotech Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹2,033.20 | ₹1,564.00 |
| February 2025 | ₹2,085.34 | ₹1,604.10 |
| March 2025 | ₹2,166.66 | ₹1,666.66 |
| April 2025 | ₹2,124.18 | ₹1,633.99 |
| May 2025 | ₹2,062.31 | ₹1,586.39 |
| June 2025 | ₹2,155.12 | ₹1,657.78 |
| July 2025 | ₹2,112.86 | ₹1,625.28 |
| August 2025 | ₹2,178.20 | ₹1,675.54 |
| September 2025 | ₹2,254.44 | ₹1,734.19 |
| October 2025 | ₹2,313.06 | ₹1,779.27 |
| November 2025 | ₹2,370.88 | ₹1,823.76 |
| December 2025 | ₹2,430.16 | ₹1,869.35 |
In 2025, Concord Biotech’s share price is expected to see an upward trajectory, with fluctuations throughout the year. The maximum price in January is forecasted to reach ₹2,033.20, while the minimum is expected to be around ₹1,564.00. As the year progresses, both the maximum and minimum prices are anticipated to increase steadily. By December, the maximum price is projected to reach ₹2,430.16, and the minimum is expected to rise to ₹1,869.35. Investors can expect the stock’s value to follow this rising trend, with potential fluctuations within these expected price ranges as market conditions evolve.
Concord Biotech Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹2,551.66 | ₹1,786.16 |
| 2027 | ₹2,806.83 | ₹1,964.78 |
| 2028 | ₹3,929.56 | ₹1,964.78 |
| 2029 | ₹3,402.22 | ₹1,701.11 |
| 2030 | ₹4,422.88 | ₹3,096.02 |
- 2026: The maximum price is expected to reach ₹2,551.66, while the minimum price may hover around ₹1,786.16.
- 2027: Both the maximum and minimum prices are anticipated to increase further, with the maximum price expected to be around ₹2,806.83 and the minimum around ₹1,964.78.
- 2028: A substantial rise in prices is forecasted, with the maximum price reaching ₹3,929.56 and the minimum remaining stable at ₹1,964.78.
- 2029: Although the maximum price might slightly decrease to ₹3,402.22, it remains significantly higher than the minimum price, which is expected to be around ₹1,701.11.
- 2030: The upward trajectory continues, with the maximum price projected to reach ₹4,422.88, while the minimum price is expected to rise to ₹3,096.02.
Investors can anticipate strong growth potential for Concord Biotech’s shares over these years, reflecting the company’s performance and market dynamics.
Concord Biotech’s Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + | 436 | 512 | 617 | 713 | 853 |
| Expenses + | 256 | 308 | 289 | 439 | 504 |
| Operating Profit | 180 | 205 | 328 | 274 | 349 |
| OPM % | 41% | 40% | 53% | 38% | 41% |
| Other Income + | 17 | 31 | 14 | 23 | 35 |
| Interest | 1 | 1 | 1 | 6 | 10 |
| Depreciation | 19 | 21 | 28 | 50 | 54 |
| Profit before tax | 178 | 213 | 313 | 241 | 320 |
| Tax % | 33% | 21% | 25% | 26% | 26% |
| Net Profit + | 118 | 169 | 235 | 179 | 238 |
| EPS in Rs | 124.48 | 177.65 | 247.44 | 187.76 | 22.76 |
| Dividend Payout % | 21% | 22% | 0% | 3% | 30% |
Concord Biotech’s financial condition over the last five years exhibits notable trends and fluctuations. From March 2019 to March 2023, the company experienced a steady increase in sales, rising from ₹436 crore to ₹853 crore, indicating a robust growth trajectory. However, expenses also escalated during this period, reflecting the costs associated with expanding operations and maintaining competitiveness in the market. Despite the rise in expenses, the operating profit saw fluctuations, reaching its peak at ₹349 crore in March 2023.
The operating profit margin (OPM) fluctuated between 38% and 53%, indicating variations in operational efficiency and cost management strategies over the years. Other income remained relatively stable, with slight fluctuations, contributing modestly to the company’s overall revenue stream.
Interest expenses and depreciation increased gradually over the years, which could be attributed to investments in infrastructure and technology to support business expansion. Despite facing challenges such as increased interest expenses and depreciation, Concord Biotech maintained consistent profitability, with net profit ranging from ₹118 crore to ₹238 crore.
The earnings per share (EPS) witnessed significant fluctuations, reflecting changes in profitability and the company’s financial performance. The dividend payout percentage varied, reflecting management’s approach to distributing profits among shareholders while ensuring adequate reinvestment for future growth initiatives.Overall, Concord Biotech demonstrated resilience and adaptability in navigating through dynamic market conditions, positioning itself for sustained growth and profitability in the future.
FAQS
- What is the current market price of Concord Biotech Ltd?
- The current market price of Concord Biotech Ltd is ₹1,593.
- What is the market capitalization of Concord Biotech Ltd?
- The market capitalization of Concord Biotech Ltd is ₹16,665 Cr.
- What is the high and low price range of Concord Biotech Ltd’s stock?
- The high and low price range of Concord Biotech Ltd’s stock is ₹1,660 and ₹900, respectively.
- What is the stock’s Price-to-Earnings (P/E) ratio?
- The stock’s Price-to-Earnings (P/E) ratio is 55.4.
- What is the book value of Concord Biotech Ltd?
- The book value of Concord Biotech Ltd is ₹129.
- What is the dividend yield of Concord Biotech Ltd?
- The dividend yield of Concord Biotech Ltd is 0.00%.
- What are the Return on Capital Employed (ROCE) and Return on Equity (ROE) of Concord Biotech Ltd?
- The Return on Capital Employed (ROCE) of Concord Biotech Ltd is 26.2%, and the Return on Equity (ROE) is 19.6%.
Should one invest in Concord Biotech?
Investing in Concord Biotech warrants careful consideration based on several factors derived from its financial performance, market positioning, and industry trends. As of the latest available data, Concord Biotech’s stock closed at ₹1,593 on April 19, 2024, with a market capitalization of ₹16,665 crore. The company operates in the pharmaceutical sector, primarily focusing on research and development-driven biopharma activities and the manufacturing of fermentation-based APIs across therapeutic areas like immunosuppressants and oncology.
Key financial metrics indicate both strengths and areas of concern. While the company’s return on capital employed (ROCE) stands at a healthy 26.2% and return on equity (ROE) at 19.6%, signaling efficient utilization of resources and favorable returns for shareholders, the stock’s price-to-earnings (P/E) ratio of 55.4 suggests a relatively high valuation compared to its earnings.
Examining the peer comparison within the pharmaceutical industry reveals Concord Biotech’s positioning relative to its competitors. Despite its robust financials, the company faces challenges such as a high P/E ratio and low dividend yield, which could influence investor decisions.
Considering the pros and cons, Concord Biotech has reduced its debt significantly, positioning itself as almost debt-free, which could be appealing to risk-averse investors. However, the stock’s trading at 12.3 times its book value and the absence of dividend yield may deter some investors seeking value or income.
Ultimately, the decision to invest in Concord Biotech should be based on individual risk tolerance, investment objectives, and thorough analysis of the company’s financial health, competitive positioning, and growth prospects. Investors should conduct further research, monitor industry developments, and consult with financial advisors before making any investment decisions.
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