Concord Drugs (538965)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Book-value support: P/B of 1.09 with price ₹38.84 close to book value ₹35.75.
• Top-line momentum: sales growth of 56.36% and latest quarter sales of ₹17 Cr.
• Positive ROCE of 4.73% indicates some return on capital employed despite negative ROE.
• Small market cap of ₹39 Cr leaves room for a potential operational turnaround.

Concerns

• Negative ROE of -19.57% and latest quarter net profit of ₹0 Cr show no earnings power.
• P/E of 149.06 with profit growth of 0.00% and PEG of 2.64 make valuation unsupported by fundamentals.
• Current price ₹38.84 is below the 52-week low of ₹49.00, showing persistent weakness.
• Debt/Equity and promoter holding are N/A, and dividend yield is 0.00%, limiting transparency and return to shareholders.

AI Analysis

When I look at Concord Drugs, the figures force me to be skeptical. The stock trades at ₹38.84 against a book value of ₹35.75, so the price-to-book is just 1.09. That gives a superficial comfort: I am paying roughly book value for a pharmaceutical business. But Ben Graham taught me that a good price is not enough; the business must earn a decent return on those assets. Here the return on equity is -19.57%, and the latest quarter shows sales of ₹17 Cr with net profit of ₹0 Cr. In other words, shareholders are not earning anything; the company is destroying book value. The reported sales growth of 56.36% looks strong, but profit growth is 0.00%, so growth is not reaching the bottom line. A P/E of 149.06 and a PEG of 2.64 on zero earnings growth are meaningless except as a warning. ROCE of 4.73% may be barely positive, but that is unlikely to cover the true cost of capital. The Piotroski F-Score of 4 out of 9 confirms a mediocre financial picture. I also notice debt/equity is not available, and promoter holding is not available, so this is not a situation where I can do deep due diligence with confidence. The current price is below the 52-week low of ₹49, and there is no dividend to compensate me for waiting. This is not a fast grower; it is a speculative turnaround. I would need to see margins and profits appear, ROE turn positive, and debt clarity before buying. Until then, the asset cushion at P/B 1.09 gives limited protection, but only if the assets are worth what the books say.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer