Concord Drugs Receives Upgraded Stock Call from MarketsMOJO, Technical Factors Show Bullish Trend

Concord Drugs, a microcap pharmaceutical company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to a 'Hold' rating, indicating a neutral stance for investors.
The technical trend for Concord Drugs has improved from Mildly Bullish to Bullish as of January 25, 2024. The stock's MACD and KST technical factors are also showing a Bullish trend. This suggests that the stock is currently in a Bullish range and may continue to perform well in the near future.

In terms of valuation, Concord Drugs has a Very Attractive ROCE of 7.6 and a low Enterprise value to Capital Employed ratio of 1.2. Additionally, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 38.85%, while its profits have risen by 72%. This is reflected in the company's low PEG ratio of 0.4.

The majority shareholders of Concord Drugs are its promoters, indicating their confidence in the company's performance. The stock has also outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance.

However, the company's long-term fundamental strength is weak, with a -4.38% CAGR growth in Net Sales over the last 5 years. Additionally, its ability to service its debt is poor, with a low EBIT to Interest ratio of 1.55. The company's Return on Equity is also low at 2.66%, indicating low profitability per unit of shareholders' funds.

In the latest quarter, Sep 23, Concord Drugs reported flat results with the lowest NET SALES(Q) at Rs 7.53 crore. This may be a cause for concern for investors, as the company's growth seems to have stagnated.

Overall, while Concord Drugs has shown strong performance in the near term, its long-term fundamentals and debt-servicing ability may be a cause for caution. Investors are advised to hold their positions and monitor the company's performance closely.