1. At a Glance
Concord Biotech is India’s fermentation pharma ninja, pumping out high-margin APIs like immunosuppressants and oncology drugs. With 42% EBITDA margins, a 29% ROCE, and a fresh US acquisition, the ₹18,865 Cr beast is either pharma royalty… or priced like it.
2. Introduction with Hook
Imagine a biopharma startup from the 80s, buried in Petri dishes, suddenly pulling off a $1,500 Mn US buyout, clearing a USFDA audit, and delivering 44% OPM.
- FY25 Sales: ₹1,200 Cr
- FY25 PAT: ₹372 Cr
- ROCE: 30% | PE: 50x
Concord isn’t curing cancer. But it might be curing your boring pharma portfolio.
3. Business Model (WTF Do They Even Do?)
Concord = specialist fermentation-driven API + injectable formulations:
- Core verticals:
- Immunosuppressants (e.g. Tacrolimus, Sirolimus)
- Oncology APIs
- Anti-infectives
- Manufacturing facilities: India-based, global reach
- Clients: Big pharma across US, Europe, RoW
- Recent pivot: CDMO + formulations + injectables (Juicy margins alert!)
Add R&D muscle + regulatory creds = 90+ DMFs, 20+ ANDAs, and counting.
4. Financials Overview
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM (%) |
|---|---|---|---|---|---|
| FY21 | 616 | 327 | 235 | 247.4 | 53.0% |
| FY22 | 713 | 270 | 175 | 183.9 | 38.0% |
| FY23 | 853 | 344 | 240 | 22.9 | 40.0% |
| FY24 | 1,017 | 432 | 308 | 29.5 | 42.0% |
| FY25 | 1,200 | 505 | 372 | 35.5 | 42.0% |
Margins tight as your jeans post-Diwali. PAT CAGR over 5 years? A solid 20%.
5. Valuation
Let’s go under the lab coat:
- PE Method (Fair PE: 30x on FY25 EPS ₹35.5)
FV = ₹1,065 - EV/EBITDA Method (20x FY25 EBITDA ₹505 Cr)
EV = ₹10,100 Cr → FV = ₹1,200–1,300 - Premium Biotech Valuation (CDMO optionality priced in)
FV Range = ₹1,200–1,400
Current CMP = ₹1,803
It’s trading above fair value, assuming perfection, growth, and zero regulatory hiccups. Fancy.
6. What’s Cooking – News, Triggers, Drama
- USFDA cleared Dholka facility (June 2025)
- 75% stake in Stellon Biotech, USA (July 2025) – Entry into US injectables
- New injectable facility commissioned
- ANDA approval for Teriflunomide (Autoimmune segment entry)
- FIIs + DIIs buying steadily
From Gujarat to Global, Concord is no longer shy.
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Reserves (₹ Cr) | 1,280 | 1,516 | 1,802 |
| Borrowings (₹ Cr) | 32 | 10 | 3 |
| Fixed Assets (₹ Cr) | 593 | 575 | 796 |
| CWIP (₹ Cr) | 173 | 211 | 50 |
| Investments (₹ Cr) | 137 | 246 | 335 |
| Total Assets (₹ Cr) | 1,514 | 1,701 | 2,034 |
Almost debt-free, loaded with R&D capex, and reserves swelling faster than your gym trainer’s biceps.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net CF (₹ Cr) |
|---|---|---|---|---|
| FY21 | — | -112 | -100 | -4 |
| FY22 | — | -158 | -85 | 3 |
| FY23 | 246 | -155 | -99 | 12 |
| FY24 | 265 | -160 | -99 | -14 |
Operating cash = beautiful
Capex = aggressive
FCF = under control
Dividend payout = ~30%
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 26 | 28 | 30 |
| ROE (%) | 22 | 23 | 22 |
| OPM (%) | 40 | 42 | 42 |
| Debtor Days | 117 | 125 | 159 |
| CCC (Days) | 357 | 306 | 310 |
Debtors a bit loose (159 days), but margins compensate. ROCE of 30%? Most companies dream of it.
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| FY23 | 853 | 344 | 240 | 22.9 |
| FY24 | 1,017 | 432 | 308 | 29.5 |
| FY25 | 1,200 | 505 | 372 | 35.5 |
Margins consistent. PAT rising. EBITDA compounding. And all this without mega brands or 50 MR teams in the field.
11. Peer Comparison
| Company | CMP (₹) | PE | ROCE (%) | Sales (Cr) | PAT (Cr) |
|---|---|---|---|---|---|
| Sun Pharma | 1,672 | 35 | 20.2 | 52,578 | 2,389 |
| Divi’s Labs | 6,835 | 82.8 | 20.4 | 9,360 | 2,191 |
| Cipla | 1,485 | 23.3 | 22.7 | 27,548 | 5,142 |
| Torrent Pharma | 3,314 | 58.5 | 27.1 | 11,516 | 1,915 |
| Concord Biotech | 1,803 | 50.8 | 29.5 | 1,200 | 372 |
Higher ROCE than most, with lower base and niche moat. But price-wise, Concord’s not playing the underdog.
12. Miscellaneous – Shareholding, Promoters
| Category | Sep ’23 | Mar ’24 | Jun ’25 |
|---|---|---|---|
| Promoters | 44.08% | 44.08% | 44.08% |
| FIIs | 7.30% | 6.49% | 9.35% |
| DIIs | 8.12% | 8.41% | 9.16% |
| Public | 40.50% | 41.03% | 37.41% |
- Promoter holding stable
- FIIs & DIIs increasing stake
- ~81K shareholders, highly liquid for a niche play
13. EduInvesting Verdict™
Concord Biotech is fermenting more than APIs—it’s brewing global ambitions. The 75% stake in Stellon Biotech (US) screams strategic. The injectable facility adds scale. And the USFDA nod means the labs are clean—literally and financially.
But at 50x PE, you’re not buying today’s lab—you’re pre-paying for tomorrow’s molecule. If the CDMO story matures and US markets open up, this stock could get a second wind. But if approvals get delayed or pricing pressure builds, you’re holding a ₹1,800 petri dish of expectations.
Metadata
– Written by EduInvesting Team | July 13, 2025
– Tags: Concord Biotech, API Manufacturer, Fermentation Pharma, CDMO, Biotech Valuation, Smallcap Pharma, USFDA Clean Chit, Stellon Acquisition
