Concord Biotech Shares Surge to Record High on Strong Growth Outlook

This rise follows positive responses from Choice Broking, which has revealed the company's capability for accelerated growth

Concord Biotech's stock broke the existing records and reached over 12% to Rs 1,815 on the National Stock Exchange (NSE) amidst high trading volumes. This significant increase shows the growing investor confidence in the company’s future, irrespective of the slightly disappointing earnings in June 2024 quarter.

Trading activity was visibly solid, with around 12 lakh shares exchanged on both BSE and NSE, significantly exceeding the one-month average volume of 79,000 shares. This rise follows positive responses from Choice Broking, which has revealed the company's capability for accelerated growth. Choice Broking's positive outlook is backed by Concord Biotech's significant progress in the Contract Development and Manufacturing Organization (CDMO) field. The brokerage shows a CAGR of 25% for the company's top-line profit over the next 3-5 years, generated by a solid product flow. Furthermore, the company’s API and Formulations department is expected to benefit from new product launches and scaling up into injectables.

The brokerage also reveals Concord Biotech's available capacities and low utilization levels as major reasons for future margin growth and operational leverage. The company expects a CAGR of 21.5%, an EBITDA CAGR of 24.7%, and a PAT CAGR of 27% for the financial year 2023- 2026. They have set a target price of Rs 1,691 for the stock, maintaining a 'buy' rating.