SYNGENE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | SYNGENE | Market Cap | 18,604 Cr. | Current Price | 462 ₹ | High / Low | 729 ₹ |
| Stock P/E | 51.5 | Book Value | 117 ₹ | Dividend Yield | 0.27 % | ROCE | 10.0 % |
| ROE | 7.74 % | Face Value | 10.0 ₹ | DMA 50 | 452 ₹ | DMA 200 | 540 ₹ |
| Chg in FII Hold | -1.05 % | Chg in DII Hold | 0.61 % | PAT Qtr | 154 Cr. | PAT Prev Qtr | 68.7 Cr. |
| RSI | 53.4 | MACD | 9.82 | Volume | 5,21,266 | Avg Vol 1Wk | 8,65,617 |
| Low price | 380 ₹ | High price | 729 ₹ | PEG Ratio | -6.11 | Debt to equity | 0.04 |
| 52w Index | 23.4 % | Qtr Profit Var | -11.8 % | EPS | 7.57 ₹ | Industry PE | 39.5 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹154 Cr. vs ₹68.7 Cr. previous quarter, showing improvement, but overall profit variation is negative (-11.8%).
- Margins: ROE at 7.74% and ROCE at 10.0% reflect modest efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.04 indicates negligible leverage, strong balance sheet.
- Cash Flow: Stable due to low debt, though profitability remains inconsistent.
💹 Valuation Indicators
- P/E Ratio: 51.5 vs Industry PE of 39.5 — trades at a premium, suggesting overvaluation.
- P/B Ratio: Price ₹462 vs Book Value ₹117 → ~3.95x, relatively expensive compared to peers.
- PEG Ratio: -6.11 indicates weak growth outlook.
- Intrinsic Value: Current price appears stretched compared to fundamentals.
🧪 Business Model & Advantage
Syngene International operates as a contract research and manufacturing organization (CRMO) serving global pharma and biotech companies. Its competitive advantage lies in strong R&D capabilities, global client base, and integrated services. However, profitability is modest and valuations are demanding.
📈 Technicals & Entry Zone
- RSI at 53.4 indicates neutral momentum.
- MACD positive (9.82) suggests short-term bullishness.
- Entry Zone: Attractive accumulation around ₹420–₹440 range.
- Long-term Holding: Suitable for investors seeking exposure to pharma R&D outsourcing, but valuation risks remain.
✅ Positive
- Quarterly PAT improved from ₹68.7 Cr. to ₹154 Cr.
- Negligible debt-to-equity ratio (0.04).
- DII holdings increased (+0.61%).
⚠️ Limitation
- High P/E ratio (51.5) compared to industry average.
- Weak ROE (7.74%) and ROCE (10.0%).
- Negative PEG ratio (-6.11) signals poor growth prospects.
📰 Company Negative News
- Profit variation negative (-11.8%).
- FII holdings declined (-1.05%).
🌟 Company Positive News
- Quarterly PAT doubled sequentially.
- DII holdings increased (+0.61%).
- Strong global client base in pharma and biotech.
🏭 Industry
Pharma R&D outsourcing industry PE at 39.5 reflects moderate valuations. Demand is driven by global drug development and biotech innovation. However, competition and regulatory risks remain key challenges.
🔎 Conclusion
Syngene International demonstrates strong R&D capabilities and negligible debt, but profitability is modest and valuations are stretched. Long-term investors may consider accumulating in the ₹420–₹440 range, aligning with global pharma outsourcing growth while being cautious of valuation risks.
For deeper insights, you could explore a peer comparison or an industry outlook to complement this analysis.