SYNGENE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | SYNGENE | Market Cap | 18,843 Cr. | Current Price | 468 ₹ | High / Low | 729 ₹ |
| Stock P/E | 52.1 | Book Value | 117 ₹ | Dividend Yield | 0.27 % | ROCE | 10.0 % |
| ROE | 7.74 % | Face Value | 10.0 ₹ | DMA 50 | 440 ₹ | DMA 200 | 552 ₹ |
| Chg in FII Hold | -1.05 % | Chg in DII Hold | 0.61 % | PAT Qtr | 154 Cr. | PAT Prev Qtr | 68.7 Cr. |
| RSI | 65.4 | MACD | 7.54 | Volume | 6,33,89,388 | Avg Vol 1Wk | 1,66,63,242 |
| Low price | 380 ₹ | High price | 729 ₹ | PEG Ratio | -6.19 | Debt to equity | 0.04 |
| 52w Index | 25.1 % | Qtr Profit Var | -11.8 % | EPS | 7.57 ₹ | Industry PE | 39.6 |
📊 SYNGENE International Ltd. shows mixed fundamentals. While the company has negligible debt-to-equity (0.04), providing financial stability, its profitability metrics remain weak with ROE at 7.74% and ROCE at 10.0%. Valuations are stretched with a P/E of 52.1 compared to industry average of 39.6, and a negative PEG ratio (-6.19) indicates poor growth-adjusted valuation. EPS is modest at ₹7.57, and dividend yield is minimal (0.27%). Quarterly PAT declined (-11.8%), raising concerns about earnings consistency, though sequential PAT improvement (₹68.7 Cr → ₹154 Cr) shows some recovery. Technicals suggest short-term strength with RSI at 65.4 and MACD at 7.54, supported by high trading volumes.
💰 Ideal Entry Price Zone: ₹440 – ₹455 (near 50 DMA support).
📈 Exit / Holding Strategy: Hold for 2–3 years; consider profit booking near ₹500–₹520 resistance unless profitability improves significantly.
✅ Positive
- Low debt-to-equity ratio (0.04) ensures financial stability.
- Sequential PAT improvement shows earnings recovery momentum.
- DII holdings increased (+0.61%), reflecting domestic investor confidence.
- Technical indicators (RSI 65.4, MACD 7.54) show short-term bullish momentum.
⚠️ Limitation
- High P/E (52.1) compared to industry average (39.6).
- Negative PEG ratio (-6.19) indicates poor growth-adjusted valuation.
- Weak ROE (7.74%) and ROCE (10.0%).
- Dividend yield is minimal (0.27%), offering limited income support.
- FII holdings decreased (-1.05%), showing reduced foreign interest.
📉 Company Negative News
- Quarterly profit variation (-11.8%) highlights earnings volatility.
- High valuation multiples relative to profitability.
📈 Company Positive News
- Sequential PAT improvement (₹68.7 Cr → ₹154 Cr).
- Domestic institutional investors increasing stake.
- Technical momentum supported by strong trading volumes.
🏭 Industry
- Biotech and pharma sector trading at PE 39.6, offering moderate valuation levels.
- Industry supported by demand for contract research and specialty pharma services.
🔎 Conclusion
SYNGENE is a cautious candidate for long-term investment. Entry near ₹440–₹455 offers better risk-reward. Hold for 2–3 years with profit booking near ₹500–₹520 resistance. While low debt and institutional support are positives, high valuations, weak ROE/ROCE, and earnings volatility limit upside potential. Improvement in profitability is essential for sustained long-term performance.