ICICI Direct has given Buy recommendation for Syngene International with a target price of Rs. 710 in its research report issued on Oct 22, 2021

ICICI Direct’s research report on Syngene International

Syngene is a contract research, development and manufacturing organisation catering mainly to global innovator pharmachemical 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

 

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