Concord Biotech Limited

Healthcare — Biotechnology · NSE

₹1,341.50−₹11.80 (−0.87%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Concord Biotech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Concord Biotech Limited, a, biopharma company, engages in the research and development, manufacture, and sale of pharmaceutical products in India and internationally. It operates through Active Pharmaceutical Ingredients (APIs) and Formulations segments.

IndustryBiotechnology

SectorHealthcare

Employees1,624

Annual revenue₹1,046 Cr

How does it make money?

Turns over ₹1,046 Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit, with ₹38 left at the operating level before interest, tax and depreciation. Each of its 1,624 employees supports ₹64.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹64.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 22.0% and earnings to grow about 30.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+22.0%

Est. earnings growth+30.3%

Analysts5

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +26% while net margin moved -14% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+26%

Margin effect-14%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 45.7x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 56.6x
✗ P/B of 6.96x is a steep premium to book

Quality vs. Valuation

Company Quality

67/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

32/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

45.7x

3Y Median

56.6x

40 monthly readings · mean 53.7x · range 28.7x–75.1x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 19% below its 3y median of 56.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 176% above the peer median of 16.5x.

vs. its own history

Fair

56.6x median over 40 months · -19%

vs. sector peers

Expensive

16.5x median of 4 peers · +176%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

34.9x

PEG

16.27

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 93% over 3 years.
Cash generation is improving
Free cash flow is up 70% over 3 years.
Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 18.6% to 12.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.7% to 16.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.9 points, from 45.3% to 38.4%.
🟡Receivables growing faster than salesFinancial
Receivables up 68% against revenue up 26% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 54% against revenue up 26% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 93% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹172 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 45.3% to 38.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 68% against revenue up 26%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 176% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 18.6% to 12.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 36%✓ 38.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 8.0% CAGR
Latest reported year was 26.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹172 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹14,034 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

45.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.96x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹29.34

Profitable

Profitable on a per-share basis

ROE

12.9%

Moderate

Moderate capital efficiency

ROCE

16.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

26.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

31.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.56%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹172 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

31.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

25.0%

Good

Healthy core-business profitability

Net Margin

24.8%

Good

Strong bottom-line conversion

Current Ratio

7.39

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

56%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1411.3 / 1450.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

30.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹831 Cr	₹998 Cr	₹1,180 Cr	₹1,046 Cr	+8.0%
EBITDA	₹376 Cr	₹454 Cr	₹527 Cr	₹402 Cr	+2.2%
EBITDA Margin	45.3%	45.5%	44.7%	38.4%	—
PAT (Net Profit)	₹240 Cr	₹308 Cr	₹372 Cr	₹261 Cr	+2.8%
EPS	₹22.95	₹29.45	₹35.52	₹24.78	+2.6%
ROE	18.6%	20.2%	20.5%	12.9%	—
ROCE	24.7%	26.6%	26.8%	16.7%	—
Total Debt	₹32 Cr	₹10 Cr	₹3 Cr	₹2 Cr	-58.1%
Free Cash Flow	₹101 Cr	₹180 Cr	₹133 Cr	₹172 Cr	+19.4%

🟢 Revenue has grown at 8.0% a year over 3 years.

🟢 EBITDA has grown at 2.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 45.3% to 38.4% over 3 years (-6.9 pts).

🟢 PAT (Net Profit) has grown at 2.8% a year over 3 years.

🟢 EPS has grown at 2.6% a year over 3 years.

🔴 ROE has fallen from 18.6% to 12.9% over 3 years (-5.7 pts).

🔴 ROCE has fallen from 24.7% to 16.7% over 3 years (-8.0 pts).

🟢 Total Debt has shrunk at 58.1% a year over 3 years.

🟢 Free Cash Flow has grown at 19.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,235 Cr

Total Liabilities

₹220 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹267 Cr

Capex

-₹95 Cr

Shareholding (proxy)

Institutional Holding

14.8%

Insider Holding

72.5%

Corporate Actions

Dividend Rate

₹7.55

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

4 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,552.6

+15.7% vs CMP

Target Range

₹1,268 – ₹1,700

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive2 mixed3 general

Concord Biotech Share Price - Live NSE: CONCORDBIO Stock Price & Chart

Upstox, 16 Oct

Concord Biotech (NSEI:CONCORDBIO) Stock Forecast & Analyst Predictions

Simply Wall Street, 11 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Concord Biotech 1:1 bonus issue announced! Jhunjhunwala family-backed stock up 50% in 6 months— record date, details

Livemint, 23 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Concord Biotech: A bad year or a bigger opportunity?

The Indian Express, 22 Jul

CONCORDBIO Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Concord Biotech (CONCORDBIO) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑