Holdings of three discretionary trusts named after the children of the late legendary investor Rakesh Jhunjhunwala have not been immune to the ongoing market downturn. Jhunjhunwala, renowned for identifying high-quality stocks even in declining markets, has suffered a significant setback, losing nearly ₹1,600 crore in just two trading sessions from a single stock that has plunged by nearly 30% in this period. Notably, these three trusts collectively own almost a quarter of the company.
The stock in question is Concord Biotech, which tumbled to a low of ₹1,482.15 on Monday, recording a sharp 12.46% decline for the day. This comes after it had already slumped 19.75% on Friday, closing at ₹1,693.20. In just two sessions, the stock has plummeted 30%, and it is now down 45% from its 52-week high of ₹2,658, recorded in September 2024.
According to the latest shareholding data, Jhunjhunwala held 2,51,99,240 equity shares, translating to a 24.09% stake in Concord Biotech as of December 31, 2024. This holding has remained unchanged since the stock’s listing in August 2023. However, the value of this stake has shrunk by ₹1,590.42 crore, dropping to ₹3,730.90 crore on Monday, from ₹5,321.32 crore on Thursday.
This stake is distributed among three discretionary trusts:
- Nishtha Jhunjhunwala Discretionary Trust holds 83,99,732 shares (8.03%)
- Aryaman Jhunjhunwala Discretionary Trust owns 83,99,754 shares (8.03%)
- Aryavir Jhunjhunwala Discretionary Trust also holds 83,99,754 shares (8.03%)
The steep decline in Concord Biotech’s stock price is primarily attributed to weak broader market sentiment and disappointing Q3 earnings, particularly a miss on profit margins. Concord Biotech specializes in manufacturing Active Pharmaceutical Ingredients (API) through fermentation and semi-synthetic processes, offering over 30 products across various therapy segments.
Q3 FY25 Performance
- Net profit: ₹75.9 crore (down 2% YoY)
- Revenue: ₹244.2 crore (up 1% YoY)
- EBITDA: ₹98 crore (down 7.46% YoY)
- Margins: 40.1% (contracted by 400 basis points)
The API segment, contributing 72% of total revenue, witnessed a slowdown due to delayed customer orders following stockpiling in the previous quarter. Meanwhile, the formulations segment, which accounts for 28% of revenue, faced a decline due to year-end closures for global clients and delays in tender approvals, leading to revenue shifts.
Brokerage Views & Future Outlook
Management expects pending orders to materialize in Q4 FY25. The Limbasi facility—a key driver for future revenue and profitability—has seen slower-than-expected customer transitions, while growth in injectable facilities is expected to be a major long-term growth catalyst.
- Choice Broking has a ‘buy’ rating with a target price of ₹2,207
- Antique Stock Broking also has a ‘buy’ rating with a target price of ₹2,187
- Kotak Institutional Equities maintains an ‘add’ rating, setting a target price of ₹2,050
About Concord Biotech
Concord Biotech has a global footprint across 70+ countries, including major markets like the USA, Europe, Japan, Latin America, Africa, and Asia, along with a significant presence in India. The company operates two API manufacturing facilities and one finished formulation unit, all located near Ahmedabad, Gujarat.
