ICICI Direct's research report on Syngene International
Syngene is a contract research, development and manufacturing organisation catering mainly to global innovator pharma\chemical companies offering integrated scientific services from early discovery to commercial supply. • Syngene serves these players, which outsource some or substantial part of their business in the product development life cycle and operates via full time equipment (FTE) and fee for services (FFS) models • Revenue breakup: Discovery services (35%): FTE engagements with high renewability; Dedicated services (32%): Long-term strategic alliances that last usually five years or more, Development and manufacturing (33%): FFS engagements which increase in volume/scale over time.
Outlook
Due to the structural story of outsourcing besides significant visibility capex and client stickiness, we remain positive and retain our BUY rating. We value Syngene at Rs 710 i.e. 40x FY24E EPS of Rs17.8.
More Info
At 17:30 Syngene International was quoting at Rs 567.75, up Rs 11.85, or 2.13 percent.
It has touched an intraday high of Rs 572.85 and an intraday low of Rs 556.55.
It was trading with volumes of 23,444 shares, compared to its thirty day average of 64,964 shares, a decrease of -63.91 percent.
In the previous trading session, the share closed down 2.97 percent or Rs 17.00 at Rs 555.90.
The share touched its 52-week high Rs 699.95 and 52-week low Rs 490.35 on 16 July, 2021 and 19 March, 2021, respectively.
Currently, it is trading 18.89 percent below its 52-week high and 15.78 percent above its 52-week low.
Market capitalisation stands at Rs 22,755.22 crore.
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