However, at 1:38 PM, shares of Concord Biotech were trading 3.73 per cent or Rs 66.75 higher at Rs 1,853.95 per share. In comparison, BSE Sensex was trading 0.12 per cent lower at 82.257.34 levels.
The uptick in Concord Biotech share price came after Antique Stock Broking reiterated its ‘Buy’ call on Concord Biotech for a target of Rs 1,920 per share.
The brokerage said it met the management of Concord Biotech where they highlighted the company’s growth prospects and capabilities.
“We expect Concord Biotech to achieve an earnings before interest, taxes, depreciation and amortisation (Ebitda) margin of over 47 per cent with an earnings per share (EPS) of 27 per cent compound annual growth rate (CAGR) by FY27,” the report read.
Analysts at Antique are upbeat on the new launches done in FY24, stronger seasonality in 2H, coupled with increasing market share in key products, and believes these factors are likely to drive Active Pharmaceutical Ingredient (API) revenue growth to 20 per cent CAGR over a two year-period.
They also sees scope for improvement in market share in most of these products as different dosage forms are going off-patent in the coming years. Analysts expect the company to remain the key beneficiary of these generic opportunities.
Besides, the company’s key focus remains on its low-volume, high-value niche products which can be developed using the fermentation route. Given this niche, there are less chances of competition for the top products in the next 3–5 years.
Fermentation is a complex manufacturing process involving working with microbial strains and culture, creating entry barriers, it added.
Lastly, Antique stock Broking is optimistic about the company’s business model as it includes long-term contracts with clients, high entry barriers with the complex manufacturing process, stable API prices, and a sustained leadership position in key molecules.
It expects the company to improve market share in its top 5 products on the back of genericization, coupled with new launches in the Anti-infective and Oncology segments.
Besides these factors, commercialisation of the injectable unit for formulations is also expected to drive positive operating leverage, analysts added.
First Published: Sep 05 2024 | 1:56 PM IST
