Concord Biotech Receives 'Hold' Rating from MarketsMOJO, Strong Fundamentals and Growth Potential Remain

Concord Biotech, a leading pharmaceutical company in the largecap industry, has recently received a 'Hold' rating from MarketsMOJO on October 21, 2024. This downgrade is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 20.18%. Additionally, the company has shown healthy long-term growth, with an annual operating profit growth rate of 30.13%.
One of the key factors contributing to the 'Hold' rating is the company's low Debt to Equity ratio, which is at 0 times on average. This indicates a strong financial position and stability for the company.

From a technical standpoint, the stock is currently in a Mildly Bullish range, with both the MACD and KST technical factors also showing a Bullish trend.

Concord Biotech's majority shareholders are the promoters, which further adds to the company's stability and potential for growth.

In terms of market performance, the stock has outperformed the market (BSE 500) with a return of 65.44% in the last year, compared to the market's return of 34.48%.

However, the company's recent financial results for the quarter ending June 2024 have shown a decline in profits. The PBT LESS OI(Q) has fallen by 26.9%, while the PAT(Q) and NET SALES(Q) have fallen by 22.6% and 15.1%, respectively.

Despite the decline in profits, Concord Biotech's ROE of 20.2 indicates a very expensive valuation, with a price to book value of 13.3. However, over the past year, the company's profits have still risen by 28%, showcasing its potential for growth.

In conclusion, while Concord Biotech's recent financial results may have caused a downgrade in its stock rating, the company's strong fundamentals and potential for growth make it a stock worth considering for long-term investment.