BSE:539268

Stock Analysis Report

Executive Summary

Syngene International Limited, a contract research and manufacturing company, provides drug discovery and development services in India and internationally.

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Syngene International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.5%

539268

3.4%

IN Life Sciences

2.3%

IN Market


1 Year Return

11.5%

539268

18.7%

IN Life Sciences

0.3%

IN Market

Return vs Industry: 539268 underperformed the Indian Life Sciences industry which returned 18.7% over the past year.

Return vs Market: 539268 exceeded the Indian Market which returned 0.3% over the past year.


Shareholder returns

539268IndustryMarket
7 Day7.5%3.4%2.3%
30 Day3.6%2.6%2.2%
90 Day1.6%0.3%-2.7%
1 Year11.6%11.5%19.6%18.7%2.3%0.3%
3 Year30.1%29.4%33.6%30.5%20.7%14.7%
5 Yearn/a127.8%120.2%41.4%28.2%

Price Volatility Vs. Market

How volatile is Syngene International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Syngene International undervalued compared to its fair value and its price relative to the market?

38.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 539268 (₹327.45) is trading above our estimate of fair value (₹11.94)

Significantly Undervalued: 539268 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 539268 is poor value based on its PE Ratio (38.4x) compared to the Life Sciences industry average (23.7x).

PE vs Market: 539268 is poor value based on its PE Ratio (38.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: 539268 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 539268 is overvalued based on its PB Ratio (6.6x) compared to the IN Life Sciences industry average (1.4x).


Next Steps

Future Growth

How is Syngene International forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539268's forecast earnings growth (16.8% per year) is above the savings rate (7.6%).

Earnings vs Market: 539268's earnings (16.8% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: 539268's earnings are forecast to grow, but not significantly.

Revenue vs Market: 539268's revenue (22.9% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 539268's revenue (22.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 539268's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Syngene International performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 539268's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: 539268's earnings growth over the past year (9%) is below its 5-year average (13.8% per year).

Earnings vs Industry: 539268 earnings growth over the past year (9%) underperformed the Life Sciences industry 11.1%.


Return on Equity

High ROE: 539268's Return on Equity (17.1%) is considered low.


Return on Assets

ROA vs Industry: 539268's Return on Assets is below or equal to the Life Sciences industry average last year.


Return on Capital Employed

ROCE Improving: 539268's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Syngene International's financial position?


Financial Position Analysis

Short Term Liabilities: 539268's short term assets (₹17.6B) exceeds its short term liabilities (₹11.3B)

Long Term Liabilities: 539268's short term assets (17.6B) exceeds its long term liabilities (6.1B)


Debt to Equity History and Analysis

Debt Level: 539268's debt to equity ratio (41.8%) is considered high

Reducing Debt: 539268's debt to equity ratio has increased from 22.3% to 41.8% over the past 5 years.

Debt Coverage: 539268's debt is well covered by operating cash flow (76.6%).

Interest Coverage: 539268 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 539268 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539268's debt is covered by short term assets (assets are 2.143490x debt).


Next Steps

Dividend

What is Syngene International's current dividend yield, its reliability and sustainability?

0.15%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 539268's dividend (0.15%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 539268's dividend (0.15%) is low compared to the top 25% of dividend payers in the Indian market (2.5%).

Stable Dividend: 539268 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 539268 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 539268 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 539268's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Syngene International's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Jonathan Hunt (50yo)

3.8yrs

Tenure

₹89,520,000

Compensation

Mr. Jonathan Hunt has been the Chief Executive Officer of Syngene International Ltd. since January 2016 and has been its Whole Time Director since May 01, 2017. Mr. Hunt served as the President and Chief  ...


CEO Compensation Analysis

Compensation vs. Market: Jonathan's total compensation ($USD1.25M) is about average for companies of similar size in the Indian market ($USD632.11K).

Compensation vs Earnings: Jonathan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

51yo

Average Age

Experienced Management: 539268's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 539268's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: 539268 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹1,880,00030 Sep 19
B. S. Prasad
EntityIndividual
Shares6,000
Max Price₹313.33
Sell₹2,601,10026 Sep 19
Amitava Saha
EntityIndividual
Shares8,200
Max Price₹317.21
Sell₹3,211,44923 Sep 19
Amitava Saha
EntityIndividual
Shares10,288
Max Price₹312.15
Sell₹742,28518 Sep 19
Lourd Joseph
EntityIndividual
Shares2,318
Max Price₹320.23
Sell₹2,506,49417 Sep 19
Lourd Joseph
EntityIndividual
Shares7,682
Max Price₹327.45
Sell₹259,921,27002 Jul 19
Biocon Ltd., ESOP
EntityCompany
Shares812,249
Max Price₹320.00
Sell₹1,385,25213 Jun 19
Vivek Gupta
EntityIndividual
Shares4,368
Max Price₹317.14
Sell₹2,235,00011 Jun 19
Siddharth Mittal
EntityIndividual
Shares6,574
Max Price₹339.98
Sell₹3,702,60008 May 19
B. S. Prasad
EntityIndividual
Shares12,240
Max Price₹302.50

Ownership Breakdown


Management Team

  • Kiran Mazumdar-Shaw (66yo)

    Chairperson & MD

    • Tenure: 0yrs
  • M. Chinappa (51yo)

    CFO & President of Finance

    • Tenure: 11.5yrs
  • Jonathan Hunt (50yo)

    CEO & Whole Time Director

    • Tenure: 3.8yrs
    • Compensation: ₹89.52m
  • Dhananjay Patankar

    Head of Pharmaceutical & Biopharmaceutical Development

    • Tenure: 0yrs
    • Compensation: ₹10.80m
  • Jegadeesh Thampi

    Head of Chemical Development

    • Tenure: 0yrs
    • Compensation: ₹5.30m
  • Purushottam Singnurkar

    Head of Formulations Development

    • Tenure: 0yrs
    • Compensation: ₹5.50m
  • Mahesh Bhalgat

    Chief Operating Officer

    • Tenure: 0.3yrs
  • Sandeep Nair

    Head of Corporate Communications

    • Tenure: 0yrs
  • Dinesh Iyer

    Head of Investor Relations

    • Tenure: 0yrs
  • Priyadarshini Mahapatra

    Company Secretary & Compliance Officer

    • Tenure: 0.3yrs

Board Members

  • Bala Manian (74yo)

    Non-Executive Additional Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹2.78m
  • Suresh Talwar (82yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: ₹2.80m
  • John Shaw (70yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: ₹440.00k
  • Catherine Rosenberg (58yo)

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: ₹1.18m
  • Kiran Mazumdar-Shaw (66yo)

    Chairperson & MD

    • Tenure: 0yrs
  • Vinita Bali (64yo)

    Non-Executive Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹1.79m
  • Vijay Kuchroo (64yo)

    Additional Director

    • Tenure: 2.6yrs
    • Compensation: ₹3.37m
  • Jonathan Hunt (50yo)

    CEO & Whole Time Director

    • Tenure: 3.8yrs
    • Compensation: ₹89.52m
  • John Russell Walls (75yo)

    Non-Executive Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹3.23m
  • Paul Blackburn (65yo)

    Non-Executive Independent Director

    • Tenure: 5.1yrs
    • Compensation: ₹3.58m

Company Information

Syngene International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Syngene International Limited
  • Ticker: 539268
  • Exchange: BSE
  • Founded: 1993
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹128.695b
  • Shares outstanding: 395.92m
  • Website: https://www.syngeneintl.com

Number of Employees


Location

  • Syngene International Limited
  • Biocon Special Economic Zone, Biocon Park
  • Plot No. 2 & 3
  • Bengaluru
  • Karnataka
  • 560099
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539268BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2015
SYNGENENSEI (National Stock Exchange of India)YesEquity SharesININRAug 2015

Biography

Syngene International Limited, a contract research and manufacturing company, provides drug discovery and development services in India and internationally. The company offers discovery chemistry services, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:52
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.