Concord Biotech Ltd. saw its shares rise significantly after reporting strong financial results for the June 2026 quarter. The pharmaceutical company's stock, partly owned by Rekha Rakesh Jhunjhunwala, also displayed bullish technical indicators, prompting analysts to predict continued upside potential.
Strong Q1 Performance Fuels Growth
For the June 2026 quarter, Concord Biotech posted a 32.8% year-on-year growth in net profit, reaching Rs 58.5 crore. Revenue also saw a substantial increase of 26.2% year-on-year, hitting Rs 257.4 crore. The company's EBITDA grew by 34.2% to Rs 82.4 crore, with EBITDA margins improving to 32%.
This strong quarterly performance contributed to the stock's nearly 4% gain during Tuesday's trading session, pushing its market capitalization to Rs 15,000 crore. Although the stock is down about 20% from its 52-week high a year ago, it has rebounded nearly 50% from its 52-week low recorded in April this year. Since its listing in August 2023 at an IPO price of Rs 1,551 crore, the stock has nearly doubled investors' wealth.
Analyst Projections and Technical Outlook
Several analytical firms have maintained a positive outlook on Concord Biotech. Choice Institutional Equities anticipates a recovery in FY27E and stronger growth in FY28E, driven by both API (Active Pharmaceutical Ingredient) and formulations businesses, coupled with the expansion of its oncology portfolio and improved market share. They project EBITDA margins to improve to 37–40% within the next three years, fueled by better utilization of its injectables facility, which is currently operating at only 5% capacity. Choice Institutional Equities has revised its target price to Rs 1,645.
Technical Breakout Signals Further Gains
- Ascending Triangle Formation: Technical analysts at SMC Global Securities identified an ascending triangle formation on the daily chart, indicating sustained accumulation and increasing buying pressure.
- Moving Average Support: Axis Direct noted that the stock is positioned firmly above its 20-, 50-, 100-, and 200-day Simple Moving Averages (SMAs), all trending higher, confirming a strong bullish structure.
- Momentum Indicators: Positive RSI and MACD signals suggest strengthening momentum, reinforcing the bullish outlook.
Analysts suggest accumulating the stock on dips within the Rs 1,380-1,400 range for potential upsides of Rs 1,540-1,550, with a stop loss below Rs 1,275. Axis Direct set a target price between Rs 1,550-1,600, with a stop loss at Rs 1,313.
Jhunjhunwala's Significant Stake
The late Rakesh Jhunjhunwala's family continues to hold a substantial stake in Concord Biotech. Rekha Rakesh Jhunjhunwala, through three discretionary trusts named after their children, cumulatively owns 2.52 crore equity shares, representing a 24.09% stake in the company. This holding was valued at approximately Rs 3,703.28 crore as of Tuesday's high. The trusts include Aryavir Jhunjhunwala Discretionary Trust (8.03%), Aryaman Jhunjhunwala Discretionary Trust (8.03%), and Nishtha Jhunjhunwala Discretionary Trust (8.03%).