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Last Updated on: 22 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 543960 | NSE: CONCORDBIO

Fundamental Analysis of Concord Biotech Ltd

Basic Stock Data

Last Updated: May 22, 2024, 8:39 pm

Market Cap 15,275 Cr.
Current Price 1,460
High / Low1,725/900
Stock P/E50.7
Book Value 129
Dividend Yield0.00 %
ROCE26.2 %
ROE19.6 %
Face Value 1.00
PEG Ratio-1.66

Data Source: screener.in

Competitors of Concord Biotech Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

Quarterly Result

MonthJun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales181159241273195262241
Expenses116121129144123143135
Operating Profit653811212972119106
OPM %36%24%46%47%37%45%44%
Other Income86912788
Interest1111110
Depreciation14131414131314
Profit before tax583010612665113100
Tax %26%26%26%26%25%25%26%
Net Profit43227994488475
EPS in Rs45.322.147.568.944.638.087.13

Last Updated: May 10, 2024, 12:02 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 10, 2024, 12:02 pm

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales340436512617713853971
Expenses195256308289439504544
Operating Profit145180205328274349426
OPM %43%41%40%53%38%41%44%
Other Income18173114233535
Interest11116104
Depreciation18192128505454
Profit before tax144178213313241320404
Tax %30%33%21%25%26%26%
Net Profit100118169235179238301
EPS in Rs105.66124.48177.65247.44187.7622.7628.78
Dividend Payout %0%21%22%0%3%30%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)18.00%43.22%39.05%-23.83%32.96%
Change in YoY Net Profit Growth (%)0.00%25.22%-4.17%-62.88%56.79%

Growth

Compounded Sales Growth
10 Years:%
5 Years:20%
3 Years:19%
TTM:20%
Compounded Profit Growth
10 Years:%
5 Years:19%
3 Years:16%
TTM:35%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:%
Return on Equity
10 Years:%
5 Years:20%
3 Years:20%
Last Year:20%

Last Updated: May 17, 2024, 6:32 pm

Balance Sheet

Last Updated: May 10, 2024, 12:02 pm

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10101010101010
Reserves5856737619901,0981,2821,343
Borrowings2295289623223
Other Liabilities697211894144191174
Total Liabilities6857639411,1831,3131,5151,550
Fixed Assets189230240546573593590
CWIP3191411874173188
Investments15122919914274138151
Other Assets343285361477592611621
Total Assets6857639411,1831,3131,5151,550

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 79155167207246
Cash from Investing Activity -42-114-195-112-158
Cash from Financing Activity -37-4331-100-85
Net Cash Flow0-13-43

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow123.00171.00153.00239.00212.00317.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days236133131105119117
Inventory Days381310312503434430
Days Payable210112201152185190
Cash Conversion Cycle407331242456368357
Working Capital Days275186160196179163
ROCE %27%25%32%21%26%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2023Dec 2023Mar 2024
Promoters44.08%44.08%44.08%
FIIs7.30%7.00%6.49%
DIIs8.12%8.40%8.41%
Public40.50%40.52%41.03%
No. of Shareholders1,00,92787,48683,296

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HSBC Small Cap Fund - Regular Plan853,9620.97129.87
Edelweiss Small Cap Fund264,7051.2840.26
Invesco India Smallcap Fund257,6291.0739.18
Edelweiss Mid Cap Fund236,2320.735.93
Franklin India Smaller Companies Fund236,0400.3135.9
Edelweiss Recently Listed IPO Fund215,0003.6432.7
Invesco India ELSS Tax Saver Fund188,2861.1328.63
Invesco India Multicap Fund169,6800.8225.8
Franklin India Opportunities Fund169,1340.8725.72
Edelweiss Large & Mid Cap Fund138,9740.7421.14

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22
FaceValue1.0010.00
Basic EPS (Rs.)22.9516.72
Diluted EPS (Rs.)22.9516.72
Cash EPS (Rs.)27.93240.38
Book Value[Excl.RevalReserv]/Share (Rs.)123.311159.99
Book Value[Incl.RevalReserv]/Share (Rs.)123.311159.99
Revenue From Operations / Share (Rs.)81.55749.62
PBDIT / Share (Rs.)36.19311.96
PBIT / Share (Rs.)31.02259.33
PBT / Share (Rs.)30.59253.57
Net Profit / Share (Rs.)22.76187.76
NP After MI And SOA / Share (Rs.)22.95183.93
PBDIT Margin (%)44.3741.61
PBIT Margin (%)38.0434.59
PBT Margin (%)37.5133.82
Net Profit Margin (%)27.9125.04
NP After MI And SOA Margin (%)28.1424.53
Return on Networth / Equity (%)18.6115.85
Return on Capital Employeed (%)24.5421.30
Return On Assets (%)15.8513.32
Long Term Debt / Equity (X)0.000.02
Total Debt / Equity (X)0.020.05
Asset Turnover Ratio (%)0.600.00
Current Ratio (X)3.794.08
Quick Ratio (X)2.692.82
Inventory Turnover Ratio (X)0.820.00
Dividend Payout Ratio (NP) (%)22.3140.31
Dividend Payout Ratio (CP) (%)18.2131.34
Earning Retention Ratio (%)77.6959.69
Cash Earning Retention Ratio (%)81.7968.66
Interest Coverage Ratio (X)83.9454.11
Interest Coverage Ratio (Post Tax) (X)53.8033.56
Retention Ratios (%)77.6859.68

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹1,307.54

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 10.44% compared to the current price ₹1460

Intrinsic Value: ₹908.57

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 37.77% compared to the current price ₹1460

Last 5 Year EPS CAGR: -30.51%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.83%, which is a positive sign.
  2. The company has higher reserves (961.71 cr) compared to borrowings (41.29 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (634.57 cr) and profit (259.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 193.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 360.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Concord Biotech Ltd:
    1. Net Profit Margin: 27.91%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 24.54% (Industry Average ROCE: 0%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✓ ROE%: 18.61% (Industry Average ROE: 0%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 53.80
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.69
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 50.7 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Pharmaceuticals
INDUSTRYADDRESSCONTACT
1482-86, Trasad Road, Dholka, Ahmedabad Gujarat 382225Mr.Sudhir%20Vaid
Chairman%20&%20Managing%20Director
Management
NamePosition Held
Mr. Ankur VaidJoint Managing Director & CEO
Mr. Ravi KapoorNon Executive Director
Mr. Rajiv Ambrish AgarwalNon Exe. & Nominee Director
Mr. Utpal ShethNon Exe. & Nominee Director
Mr. Amit VarmaNon Exe. & Nominee Director
Ms. Bharti KhannaIndependent Director
Mr. Anil KatyalIndependent Director
Mr. Amitabh ThakoreIndependent Director
Mr. Arvind AgarwalIndependent Director
Mr. Jayaram EaswaranIndependent Director
Mr. Mandayam Chakravarthy SriramanIndependent Director

FAQ

What is the latest fair value of Concord Biotech Ltd?

The latest fair value of Concord Biotech Ltd is ₹1307.54.

What is the Market Cap of Concord Biotech Ltd?

The Market Cap of Concord Biotech Ltd is 15,275 Cr..

What is the current Stock Price of Concord Biotech Ltd as on 22 May 2024?

The current stock price of Concord Biotech Ltd as on 22 May 2024 is ₹1,460.

What is the High / Low of Concord Biotech Ltd stocks in FY 2024?

In FY 2024, the High / Low of Concord Biotech Ltd stocks is ₹1,725/900.

What is the Stock P/E of Concord Biotech Ltd?

The Stock P/E of Concord Biotech Ltd is 50.7.

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 is the ROCE of Concord Biotech Ltd?

The ROCE of Concord Biotech Ltd is 26.2 %.

What is the ROE of Concord Biotech Ltd?

The ROE of Concord Biotech Ltd is 19.6 %.

What is the Face Value of Concord Biotech Ltd?

The Face Value of Concord Biotech Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Concord Biotech Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE