SYNGENE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.3

📊 Core Financials Analysis

Profitability & Growth

Quarterly PAT dropped from ₹183 Cr. to ₹86.7 Cr. — a significant decline, though YoY growth remains positive (Qtr Profit Var: 67.4%).

ROCE at 13.5% and ROE at 10.5% are moderate, indicating decent but not exceptional capital efficiency.

EPS of ₹12.6 is modest relative to the high valuation.

Debt & Liquidity

Debt-to-equity ratio of 0.12 reflects a strong balance sheet with low financial risk.

Dividend yield is minimal at 0.18%, typical for growth-focused companies.

Cash Flow

While direct cash flow data isn’t provided, low debt and consistent profitability suggest stable operational cash generation.

📉 Valuation Metrics

Metric Value Remarks

P/E Ratio 56.5 Premium vs. industry PE of 50.6

P/B Ratio ~6.1 High, but typical for high-growth pharma

PEG Ratio 13.3 Extremely high — signals overvaluation

Intrinsic Value Overvalued Based on current earnings and growth metrics

PEG ratio above 1 (especially >10) indicates the stock is priced far above its earnings growth rate.

🧬 Business Model & Competitive Edge

Syngene International is a leading contract research and manufacturing organization (CRMO) serving global pharma and biotech firms.

Competitive advantage lies in its long-term partnerships (e.g., with Bristol Myers Squibb), strong R&D capabilities, and regulatory compliance.

Positioned well in the global outsourcing trend in life sciences, but growth is priced in.

📌 Entry Zone & Investment Guidance

Entry Zone: ₹620–₹660 range — below 50 DMA and closer to recent low of ₹599, offering better valuation comfort.

Current Price: ₹711 — at 200 DMA, RSI at 71.2 suggests overbought territory.

Long-Term View

Hold if already invested — strong fundamentals and sector tailwinds.

New investors should wait for a correction or earnings acceleration before entering.

Would you like a peer comparison with Divi’s Labs or Gland Pharma to assess relative positioning in the CRMO space?

Edit in a page