Concord Biotech Receives 'Buy' Rating from MarketsMOJO Based on Strong Fundamentals and Bullish Trend

Concord Biotech, a midcap pharmaceutical company, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, healthy growth, and bullish technical trend.
One of the key factors contributing to the 'Buy' rating is the company's average Return on Equity (ROE) of 260.68%, indicating a strong financial performance. Additionally, the company has shown consistent growth with an annual rate of 29.59% in operating profit. Moreover, Concord Biotech has a low Debt to Equity ratio of 0.16 times, indicating a healthy balance sheet.

From a technical standpoint, the stock is currently in a bullish range and has shown a 5.04% return since the technical trend improved from Mildly Bullish on 03-Sep-24. Multiple factors such as MACD, Bollinger Band, KST, and DOW are also indicating a bullish trend for the stock.

Another positive aspect for investors is the increasing participation of institutional investors in the company. These investors have a better capability and resources to analyze the fundamentals of companies, making their increased stake of 2.57% in the previous quarter a positive sign for Concord Biotech.

In terms of market performance, the stock has outperformed the market (BSE 500) with a return of 82.37% in the last year, compared to the market's return of 33.83%.

However, there are some risks associated with investing in Concord Biotech. The company's results for Jun 24 have been flat, with a decline in PBT LESS OI(Q) at Rs 69.21 cr and PAT(Q) at Rs 59.59 cr. Additionally, the company's net sales have also fallen by 15.1%. Moreover, with a ROE of 20.2, the stock is currently trading at a very expensive valuation with a 12.7 Price to Book Value. This is higher than its average historical valuations. It is also worth noting that while the stock has generated a high return of 82.37% in the last year, its profits have only risen by 28%.

In conclusion, Concord Biotech's 'Buy' rating from MarketsMOJO is based on its strong long-term fundamentals, healthy growth, and bullish technical trend. However, investors should also consider the risks associated with the company, such as its recent flat results and expensive valuation.