Concord Biotech is a leading fermentation-based API company with a strong track record. The company has a diversified global customer base, strong R&D capabilities, and scaled manufacturing facilities. However, its international operations expose it to complex management, legal, tax, and economic risks, said Swastika Investmart."The industry has been facing margin pressure in recent quarters. It is also worth noting that this IPO is purely an OFS, meaning that the company will not receive any proceeds from the offering. While the valuations may not appear overly attractive, this IPO could still deliver a moderate return," it added, suggesting investors may apply for listing gain.
Rating: Subscribe - At the higher price band, Concord Biotech's valuations are at discount to the peer average. Growth in the global market of fermentation-based APIs is expected to be driven by immunology, oncology, and anti-infective therapeutic areas, said Choice Broking."It is focusing on these therapeutic areas with its wide range of niche & complex APIs. Moreover, considering its manufacturing capabilities and geographic presence, CBL is well placed to benefit from the expansion in the market," it added, with a subscribe rating for the issue.
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