Recent Price Movements and Market Comparison
Concord Biotech’s share price has been on a downward trajectory over recent periods. In the last week, the stock fell by 2.07%, contrasting with the Sensex’s gain of 0.85%. Over the past month, the decline deepened to 8.47%, while the benchmark index rose by 0.73%. Year-to-date, the stock has lost 2.49%, whereas the Sensex has advanced by 0.64%. Most strikingly, over the last year, Concord Biotech’s shares have plummeted by 38.15%, a stark underperformance compared to the Sensex’s 7.28% gain. This persistent weakness highlights the stock’s struggles amid broader market resilience.
On the day in question, the stock hit a new 52-week low of ₹1,300.10, marking a fresh nadir for investors. It also underperformed its sector by 2.46%, signalling relative weakness within its industry group. The stock has now declined for two consecutive days, accumulating a 2.49% loss over this short span. Intraday, the share price touched a low of ₹1,300.10, down 2.76% from previous levels. Furthermore, Concord Biotech is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring a bearish technical outlook.
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Investor Participation and Liquidity Concerns
Investor engagement appears to be waning, as evidenced by a sharp 67.25% drop in delivery volume on 01 Jan compared to the five-day average. The delivery volume stood at 11,320 shares, indicating reduced investor conviction and participation. Despite this, the stock remains sufficiently liquid for trades up to ₹0.16 crore based on 2% of the five-day average traded value, allowing for reasonable market activity without excessive price impact.
Fundamental Performance and Valuation Challenges
While Concord Biotech boasts a commendable management efficiency with a return on equity (ROE) of 19.17% and maintains a low debt-to-equity ratio averaging zero, these positives have not translated into robust growth or investor confidence. The company’s operating profit has contracted at an annual rate of 0.48% over the past five years, signalling stagnation in core profitability.
Recent quarterly results released in September 2025 further dampened sentiment. Profit before tax excluding other income (PBT less OI) stood at ₹72.33 crore, down 32.1% compared to the previous four-quarter average. Net profit after tax (PAT) also declined sharply by 28.6% to ₹63.58 crore. Additionally, the company’s operating cash flow for the year was at a low of ₹244.52 crore, reflecting cash generation challenges.
Valuation metrics add to the concerns. Despite the high ROE of 17.7%, the stock trades at a price-to-book value of 7.5, indicating a premium valuation that may not be justified given the weak earnings trajectory. Over the past year, profits have fallen by 1.2%, compounding the negative return of 38.15% for shareholders. This combination of expensive valuation and deteriorating fundamentals has contributed to the stock’s poor performance relative to the BSE500 index over one year, three years, and three months.
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Conclusion: Why Concord Biotech Is Falling
The decline in Concord Biotech’s share price on 02-Jan is the result of a confluence of factors. The stock’s persistent underperformance against the Sensex and sector peers, coupled with a fresh 52-week low, signals waning investor confidence. Weak quarterly earnings, declining profitability, and subdued operating cash flows have overshadowed the company’s strong management efficiency and low leverage. Furthermore, the stock’s relatively high valuation multiples appear unjustified amid shrinking profits and negative long-term growth trends.
Technical indicators reinforce the bearish outlook, with the share price trading below all major moving averages and falling investor participation suggesting reduced market interest. These elements collectively explain why Concord Biotech’s shares are falling despite some positive attributes, highlighting the challenges the company faces in regaining investor trust and market momentum.
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