Choice Broking initiates coverage on Concord Biotech with ‘Outperform’ rating; sees 16% upside
₹1,715 per share, implying an upside of 16% from Monday’s closing price. Also Read: Kotak 'downgrades' GAIL stock after a stellar nearly 70% run in 2023. Here are 3 major reasons why The brokerage firm is optimistic on Concord Biotech on the back of fermentation APIs gaining market share with expansion of API portfolio in the low-volume high value segment and formulations segment picking-up due to new launches and the addition of injectables portfolio.
Moreover, the brokerage is also positive on the stock due to ready capacities and low utilization levels providing opportunities for operating leverage and margin expansion. The brokerage estimates the company to deliver FY23-26 revenue, EBITDA and PAT CAGR of 21.4%, 26% and 27.5%, respectively. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Concord Biotech has one of the widest range of small molecule fermentation-based immunosuppressant APIs and is also one of the leading global developers and manufacturers of immunosuppressants and oncology APIs.
The company’s strength lies in its focused niche fermentation API’s which is backwardly integrated to KSM. It commands a market share of over 20% (by volume) across key identified fermentation‐based API products. “Future growth of the fermentation based API segment will be led by market share gains due to increasing the wallet share from existing API customers and new client addition; and expansion of API portfolio in the low-volume high value segment.
We estimate the API segment to register a robust CAGR of 14.8% between FY23-26E," Choice Broking said in a note. Also Read: Yes Bank share hits 52-week high. Experts see more
. Read more on livemint.com
