Concord Biotech Ltd
Concord Biotech Ltd
HealthcareIncorporated in 1984, Concord Biotech Limited is an India-based R&D-driven biopharma company and manufacturer of fermentation-based APIs across immunosuppressants and oncology.[1]
Concord Biotech is a near debt-free specialty pharma company with a healthy 18% 3-year ROE, but the stock trades at a rich 54.2x PE while TTM sales have declined 12% and profits have fallen 25%. The 28% stock price correction in the past year reflects deteriorating near-term fundamentals, warranting a wait-and-watch approach until growth visibility improves.
Key Fundamentals
MicrocapPharmaceuticalsHealthcareTechnical Indicators
Key Insights
Strengths
3- Company has reduced debt.
- Company is almost debt free.
- Company has been maintaining a healthy dividend payout of 28.2%
Weaknesses
3- The company has delivered a poor sales growth of 11.3% over past five years.
- Company has high debtors of 159 days.
- Working capital days have increased from 243 days to 370 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoConcord Biotech is a near debt-free specialty pharma company with a healthy 18% 3-year ROE, but the stock trades at a rich 54.2x PE while TTM sales have declined 12% and profits have fallen 25%. The 28% stock price correction in the past year reflects deteriorating near-term fundamentals, warranting a wait-and-watch approach until growth visibility improves.
- Company is virtually debt-free, providing significant financial flexibility and low balance sheet risk
- 3-year and 5-year ROE sustained at 18%, indicating consistent capital efficiency despite recent slowdown
- 10-year compounded sales CAGR of 14% demonstrates a long-term structural growth track record
- 10-year compounded profit CAGR of 12% shows durable earnings power over a full business cycle
- Healthy dividend payout ratio of 28.2% signals management confidence and shareholder-friendly capital allocation
- 67% of covering analysts have a Buy rating (2 out of 3), reflecting positive consensus outlook
- Zero analyst Sell ratings out of 3 total coverage initiations suggests no structural downside thesis
- Dividend yield of 0.79% provides modest income support during the current correction phase
- TTM sales growth has turned negative at -12%, signaling a sharp demand or execution deterioration
- TTM profit growth collapsed to -25%, far worse than the 5-year profit CAGR of just 3%
- PE ratio of 54.2x is expensive for a company with declining earnings and single-digit long-term profit CAGR
- Working capital days have ballooned from 243 days to 370 days, indicating severe cash conversion cycle deterioration
- Debtor days at 159 days are extremely elevated, raising concerns about revenue quality and collection risk
- Stock has declined 28% over the past 1 year, reflecting sustained loss of market confidence
- 5-year compounded sales growth of only 11% is modest for a company commanding a 54x earnings multiple
- Last year ROE dropped to 14% from 18% 3-year average, showing profitability compression is accelerating
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Q4 profit plunges 37% YoY May 29
Net profit fell 36.8% to ₹88.8 crore and revenue dropped 24.1% to ₹326.1 crore in Q4 FY26. EBITDA margin compressed to 36.4% from 44.3% due to lower revenue and elevated costs.
- Jefferies holds with ₹1,020 target Jun 03
Jefferies maintained a 'Hold' rating with a target price of ₹1,020, citing below-expectation Q4 performance due to delays in order execution and regulatory approvals.
- Stock 46% below 52-week high Jun 02
Despite recent recovery, the stock trades at ₹1,264 versus its 52-week high of ₹2,149.90, reflecting a prolonged corrective phase over several months.
- USFDA nod for Mycophenolate Mofetil Jun 02
Received ANDA approval for Mycophenolate Mofetil Oral Suspension USP 200 mg/mL targeting a ~$30 million US market in transplant immunosuppressants. Stock surged 8-10% on the news.
- USFDA approval for Tofacitinib Tablets Jun 10
Obtained USFDA approval for Tofacitinib Tablets targeting a US market with potential sales of $500 million, a commercially significant addition to the portfolio.
- ANVISA inspection cleared at Limbasi Jun 12
Successfully completed Brazil's ANVISA inspection at its Limbasi API facility from June 8-12, 2026, opening access to one of the world's largest pharma markets.
- Renewable energy stake acquired Jun 20
Invested ₹6.3 crore to acquire 27.38% stake in FSGE Renewable Power for a hybrid project aimed at reducing carbon footprint and energy costs.
- FY27 revenue growth expected higher Jun 03
Jefferies expects revenue growth in FY27 to exceed historical averages with EBITDA margin improvement, and current order book provides H1 visibility.
- Investor roadshow June 24-25 Jun 19
Management to meet investors in Mumbai on June 24-25, 2026 in a non-deal roadshow organised by Kotak Institutional Equities.
- Analyst meet held June 17 Jun 13
Held a virtual analyst and institutional investor meeting on June 17, 2026 at 10:30 AM IST, relying on publicly available information.
- Dividend of ₹7.55 per share May 29
Board recommended ₹7.55 per share dividend for FY26 with July 24, 2026 as the record date, subject to shareholder approval at the AGM.
TL;DR: Concord Biotech delivered a weak Q4 FY26 with profit down 37% and revenue down 24%, but the regulatory pipeline is firing on all cylinders with USFDA approvals for Mycophenolate Mofetil (~$30M market) and Tofacitinib ($500M market), plus ANVISA clearance for Brazil access. The stock has rebounded sharply from its ₹1,130 support zone on these catalysts. The trend appears to be turning from deteriorating financials toward a recovery narrative, contingent on FY27 order execution and margin normalization.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 273 | 195 | 262 | 241 | 319 | 216 | 310 | 244 | 430 | 204 | 247 | 278 | 326 |
| Expenses | 144 | 123 | 143 | 135 | 185 | 135 | 174 | 146 | 239 | 143 | 157 | 176 | 204 |
| Operating Profit | 129 | 72 | 119 | 106 | 134 | 81 | 137 | 98 | 190 | 61 | 91 | 102 | 122 |
| OPM % | 47% | 37% | 45% | 44% | 42% | 38% | 44% | 40% | 44% | 30% | 37% | 37% | 38% |
| Other Income | 12 | 7 | 8 | 8 | 11 | 10 | 10 | 15 | 9 | 14 | 13 | 7 | 16 |
| Interest | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 14 | 13 | 13 | 14 | 14 | 13 | 13 | 13 | 15 | 18 | 18 | 19 | 19 |
| PBT | 126 | 65 | 113 | 100 | 131 | 78 | 133 | 99 | 185 | 57 | 86 | 90 | 118 |
| Tax % | 26% | 25% | 25% | 26% | 26% | 25% | 26% | 25% | 23% | 26% | 26% | 25% | 24% |
| Net Profit | 94 | 48 | 84 | 75 | 97 | 58 | 99 | 74 | 142 | 43 | 63 | 68 | 90 |
| EPS in Rs | 8.94 | 4.63 | 8.08 | 7.13 | 9.29 | 5.57 | 9.43 | 7.08 | 13.57 | 4.07 | 6.01 | 6.48 | 8.6 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 239 | 276 | 340 | 436 | 512 | 617 | 713 | 853 | 1,017 | 1,200 | 1,055 |
| Expenses | 133 | 145 | 212 | 256 | 308 | 289 | 439 | 509 | 585 | 693 | 679 |
| Operating Profit | 105 | 131 | 127 | 180 | 205 | 328 | 274 | 344 | 432 | 507 | 377 |
| OPM % | 44% | 48% | 37% | 41% | 40% | 53% | 38% | 40% | 42% | 42% | 36% |
| Other Income | 11 | 8 | 36 | 17 | 31 | 14 | 23 | 35 | 34 | 44 | 49 |
| Interest | 1 | 0 | 1 | 1 | 1 | 1 | 6 | 5 | 3 | 1 | 0 |
| Depreciation | 10 | 10 | 18 | 19 | 21 | 28 | 50 | 54 | 54 | 54 | 74 |
| PBT | 106 | 129 | 144 | 178 | 213 | 313 | 241 | 320 | 409 | 496 | 351 |
| Tax % | 34% | 33% | 30% | 33% | 21% | 25% | 26% | 26% | 26% | 25% | 25% |
| Net Profit | 70 | 87 | 100 | 118 | 169 | 235 | 179 | 238 | 305 | 373 | 263 |
| EPS in Rs | 76.32 | 94.78 | 106 | 124 | 178 | 247 | 188 | 22.76 | 29.13 | 35.65 | 25.17 |
| Div. Payout % | 22% | 25% | 0% | 21% | 22% | 0% | 3% | 30% | 30% | 25% | 30% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 9 | 9 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Reserves | 268 | 329 | 585 | 673 | 761 | 990 | 1,098 | 1,282 | 1,515 | 1,802 | 2,009 |
| Borrowings | 35 | 36 | 22 | 9 | 52 | 89 | 62 | 32 | 10 | 3 | 1 |
| Other Liabilities | 55 | 74 | 69 | 71 | 118 | 94 | 144 | 191 | 164 | 219 | 216 |
| Total Liabilities | 367 | 448 | 685 | 763 | 941 | 1,183 | 1,313 | 1,515 | 1,699 | 2,034 | 2,237 |
| Fixed Assets | 104 | 110 | 189 | 230 | 240 | 546 | 573 | 593 | 575 | 795 | 788 |
| CWIP | 19 | 70 | 3 | 19 | 141 | 18 | 74 | 173 | 211 | 51 | 78 |
| Investments | 42 | 43 | 151 | 229 | 199 | 142 | 74 | 138 | 244 | 335 | 488 |
| Other Assets | 202 | 225 | 343 | 285 | 361 | 477 | 592 | 611 | 668 | 854 | 883 |
| Total Assets | 367 | 448 | 685 | 763 | 941 | 1,183 | 1,313 | 1,515 | 1,699 | 2,034 | 2,237 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | — | — | 79 | — | 155 | 167 | 207 | 246 | 265 | 245 | 264 |
| Investing | — | — | -42 | — | -114 | -195 | -112 | -158 | -155 | -160 | -142 |
| Financing | — | — | -37 | — | -43 | 31 | -100 | -85 | -99 | -99 | -115 |
| Net Cash Flow | — | — | 0 | — | -1 | 3 | -4 | 3 | 12 | -14 | 7 |
| Free Cash Flow | — | — | 79 | — | -1 | -37 | 52 | 101 | 180 | 134 | 169 |
| CFO/OP | — | — | 101 | — | 100 | 74 | 98 | 92 | 85 | 70 | 96 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 165 | 182 | 236 | 133 | 131 | 105 | 119 | 117 | 125 | 159 | 159 |
| Inventory Days | 276 | 321 | 381 | 310 | 312 | 503 | 434 | 430 | 331 | 286 | 483 |
| Days Payable | 108 | 129 | 210 | 112 | 201 | 152 | 185 | 190 | 150 | 135 | 150 |
| Cash Conversion Cycle | 334 | 374 | 407 | 331 | 242 | 456 | 368 | 357 | 306 | 310 | 492 |
| Working Capital Days | 195 | 209 | 275 | 177 | 159 | 177 | 163 | 153 | 166 | 193 | 370 |
| ROCE % | — | 37% | — | 25% | 25% | 32% | 21% | 26% | 28% | 28% | 19% |
Documents
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Company Information
Incorporated in 1984, Concord Biotech Limited is an India-based R&D-driven biopharma company and manufacturer of fermentation-based APIs across immunosuppressants and oncology.[1]