Concord Biotech stock surges 12% on high volumes; climbs fresh peak

In the past 12 months, Concord Biotech stock has risen 76 percent, outperforming benchmark Nifty which rallied 30 percent during this period.

Shares of Concord Biotech surged over 12 percent to hit an all-time high of Rs 1,815 on the National Stock Exchange (NSE) on high volumes. So far in the day, around 12 lakh shares of the company changed hands on BSE and NSE combined as against 1-month average trading volume of 79,000 shares.

The company's earnings for the quarter ended June 2024 came in slightly below expectations. The management, however, remains optimistic about the growth prospects for both segments.

Choice Broking is optimistic about Concord Biotech's future, citing several key factors driving its growth. The company's top-line revenue is projected to grow at a compound annual growth rate (CAGR) of 25 percent over the next 3-5 years, fueled by a robust pipeline of products.

Additionally, the API and Formulations segment is benefiting from new launches and the expansion into injectables, further enhancing its market position.

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The brokerage also highlights Concord Biotech's ready capacities and low utilization levels as significant opportunities for operating leverage and margin expansion. These factors are expected to contribute positively to the company’s profitability.

Furthermore, the ongoing exploration of opportunities in the Contract Development and Manufacturing Organization (CDMO) segment is anticipated to accelerate growth.

Choice Broking estimates a revenue, EBITDA, and PAT CAGR of 21.5 percent, 24.7 percent, and 27 percent, respectively for FY23-26. Valuing the stock at 36 times FY26E EPS, they have set a target price of Rs. 1,691 and maintained a 'buy' rating on Concord Biotech

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At 10:18 am, Concord Biotech shares were trading 5.7 percent higher at Rs 1,705.15 on the National Stock Exchange (NSE). The stock has gained 15 percent so far this year. In the past 12 months, the counter has risen 76 percent, outperforming benchmark Nifty which rallied 30 percent during this period.

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