About the Company:
• Concord Biotech Limited is an R&D-driven biopharma company based in India, established in 1984. It holds a prominent position globally as a developer and manufacturer of fermentation-based APIs, particularly in immunosuppressants and oncology, leading in market share by volume in 2022.
• With a strong international presence, Concord supplies its products to more than 70 countries, including the USA, India, Europe, and Japan.
• The company specializes in manufacturing Active Pharmaceutical Ingredients (API) using fermentation and semi-synthetic processes, expanding from a single product to a comprehensive solution provider.
• Concord's product range covers therapeutic segments such as Immunosuppressants, Anti-bacterial, Oncology, Antifungals, and more, attracting customers worldwide. Additionally, the company boasts a robust pipeline of products currently under development.
Financials and Valuation:
The following table shows the summary of financials for the latest three financial years along with CAGR return from FY21 to FY23.
Next, we compare the key valuation ratios with the listed peers of SBFC Finance Limited.
Based on the financials of FY23 and the upper price band of the IPO, we can calculate the relative valuation as mentioned in the below table:
Conclusion:
1) Apart from the Price to Earnings Ratio, the valuation of Concord Biotech Limited appears justified for long-term investment based on the other three criteria.
2) Though the IPO is fully priced, as per the latest GMP, a small listing gain in the range of 15% to 20%, can be expected subject to the overall market conditions.
Note: For additional information & risk factors please refer to the Red Herring Prospectus
Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decision. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
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