ICICI Direct's research report on Syngene International
Q3FY21 revenues grew 12.6% YoY to ~Rs 584 crore driven by sustained performance from all divisions. EBITDA margins improved 58 bps YoY to 30.1% with better gross margins due to change in product mix, better procurement and energy efficiency being partly offset by higher employee and other expenditure. EBITDA grew 14.8% YoY to Rs 176 crore. Net profit grew 11.3% YoY to Rs 102 crore. Delta vis-a-vis EBITDA was due to higher depreciation and lower other income partially offset by lower tax rate.
We remain positive on the company and maintain BUY despite the recent run up in the stock and arrive at a target price of Rs 700 (vs. Rs 635 earlier) based on ~42x FY23 EPS of Rs 16.7.