SYNGENE - Investment Analysis

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

Investment Rating: 3.9

📊 Fundamental & Valuation Analysis

Syngene International Ltd is a high-quality contract research and manufacturing organization (CRDMO) with strong fundamentals and long-term growth potential

P/E Ratio: 56.5 vs Industry PE of 50.6 — slightly overvalued

PEG Ratio: 13.3 — very high, indicating expensive valuation relative to growth

ROE / ROCE: 10.5% / 13.5% — moderate efficiency, not industry-leading

Dividend Yield: 0.18% — minimal, not attractive for income investors

Debt to Equity: 0.12 — low leverage, financially sound

The company has shown consistent revenue growth, strong client retention, and expanding capabilities in biologics and AI-driven drug discovery

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. However, recent profit contraction and high valuation metrics suggest caution.

📉 Technical & Trend Analysis

Current Price: ₹711

DMA 50 / DMA 200: ₹659 / ₹711 — trading at long-term resistance

RSI: 71.2 — overbought zone

MACD: 12.8 — bullish momentum

Volume: Below 1-week average — waning interest

The stock has rebounded ~18% from its 52-week low of ₹599, but is still ~26% below its high of ₹961. Technical indicators suggest short-term overheating.

✅ Ideal Entry Price Zone

Based on valuation and technical indicators, the ideal entry zone is

₹640–₹675

This aligns with support near the 50 DMA and avoids buying into overbought conditions

Wait for RSI to drop below 60 and MACD to flatten for a safer entry

📈 Long-Term Holding Strategy

If you already hold the stock

Holding Period: 5–7 years, given Syngene’s strategic expansion and global partnerships

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Exit Strategy

Partial exit near ₹850–₹900 if valuation overheats or RSI > 80

Full exit if ROE/ROCE stagnate below 10% or PEG remains above 10 for multiple quarters

Reassess if quarterly PAT growth slows below 10% YoY for 2+ quarters

Syngene’s long-term outlook is supported by its biologics expansion in the U.S., AI-enhanced platforms, and strong client base including Amgen and BMS

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🔍 Summary

Metric Value Verdict

ROE / ROCE 10.5% / 13.5% Moderate

PEG Ratio 13.3 Overvalued

Dividend Yield 0.18% Minimal

Debt to Equity 0.12 Excellent

RSI / MACD 71.2 / 12.8 Overbought / Bullish

PAT Trend -52.7% QoQ Weakening

Syngene is a solid long-term compounder in the life sciences space, but current valuations and technicals suggest waiting for a better entry. Ideal for patient investors with a 5+ year horizon.

Would you like a comparison with peers like Divi’s Labs or Laurus Labs to evaluate Syngene’s positioning in the CRDMO space?

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CNBCTV18

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www.valueresearchonline.com

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annualreport.syngeneintl.com

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annualreport.syngeneintl.com

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