Concord Biotech Receives 'Buy' Rating from MarketsMOJO, Strong Fundamentals and Bullish Trend Drive Upgrade

Concord Biotech, a leading pharmaceutical company in the largecap industry, 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 Concord Biotech's average Return on Equity (ROE) of 20.18%, which indicates a strong financial performance. Additionally, the company has shown consistent growth with an annual operating profit growth rate of 30.13%. This is further supported by a low Debt to Equity ratio of 0 times, indicating a healthy balance sheet.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since October 15, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

Moreover, the majority shareholders of Concord Biotech are promoters, which instills confidence in the company's management and their vision for the future.

In terms of market performance, Concord Biotech has outperformed the market (BSE 500) with a return of 69.40% in the last year, compared to the market's return of 35.67%.

However, there are some risks to consider. The company's results for June 2024 were flat, with a decline in Profit Before Tax (PBT) and Profit After Tax (PAT) by 26.9% and 22.6%, respectively. Additionally, the net sales also saw a decline of 15.1%. Furthermore, with a ROE of 20.2, the stock is currently trading at a very expensive valuation with a Price to Book Value of 13.3.

Despite these risks, Concord Biotech has shown a strong performance in the past year, with a 69.40% return and a 28% increase in profits. With its strong fundamentals, healthy growth, and bullish technical trend, the stock has the potential to continue its market-beating performance in the future.