Syngene International Ltd. share price target

Revenues grew at ~16% CAGR in FY16-20 to | 2012 crore due to new client addition on a regular basis and scaled up revenues from existing clients led by integrated service offerings, high data integrity ethos and continuous endeavour to move up the value chain. Eight of the top 10 global pharma companies have been availing services for the last five years. It has a pool...

Revenues grew at ~16% CAGR in FY16-20 to | 2012 crore due to new client addition on a regular basis and scaled up revenues from existing clients led by integrated service offerings, high data integrity ethos and continuous endeavour to move up the value chain. Eight of the top 10 global pharma companies have been availing services for the last five...

In addition to CRAMS (Syngene)/Biosimilars, BIOS is building another lever i.e. Small molecules for growth over the next 4-5 years. Revenue increased 13% YoY to INR17.5b (in-line) in 3QFY20, mainly led by strong growth in Biologics (+31% YoY; 34% of sales) and Small Molecules Research Services (30% of sales) grew 11% YoY to INR5.2b. Aspart BLA is likely to Gross margin is likely to improve in the coming quarters with ramp up in production of Pegfilgrastim and better traction in Trastuzumab. Over FY19-22, we expect earnings CAGR of 28%, led by a CAGR of 36% in Biologics and 17% in Small molecules, with a 360bp margin improvement. Further, Syngene is well positioned to move from contract research to contract manufacturing and thus Over FY19-22, we expect earnings CAGR of 20%, led by a CAGR of 36% in Biologics and 17% in Small molecules, with a 360bp margin improvement.

Revenues grew at ~21% CAGR in FY15-19 to | 1826 crore due to new client addition on a regular basis and scaled up revenues from existing clients led by integrated service offerings, high data integrity ethos and continuous endeavour to move up the value chain. Eight of the top 10 global pharma companies have been availing services for the last five years. It owns a pool...

Integrated business model, customer stickiness to the fore Revenues grew at ~21% CAGR in FY15-19 to | 1826 crore due to new client addition on a regular basis and scaled up revenues from existing clients led by integrated service offerings, high data integrity ethos and continuous endeavour to move up the value chain. Eight of the top 10 global pharma companies have been availing services for the last five years. It owns a pool...

Revenues grew at ~21% CAGR in FY15-19 to | 1826 crore due to new client addition on a regular basis and scaled up revenues from existing clients led by integrated service offerings, high data integrity ethos and continuous endeavour to move up the value chain. Eight of the top 10 global pharma companies have been availing services for the last five years. It owns a pool...

Syngene's Q3FY19 results were a mixed bag. While revenues and net profit were above I-direct estimates, EBITDA margins were lower than our estimates mainly due to lower gross margins Revenues grew 20.5% YoY to | 467.1 crore (I-direct estimate: | 431 crore) mainly on the back of traction in 1) accelerating growth in Discovery Services and Biologics businesses, 2) scientist ramp-up and 2) favourable currency movement (6% YoY). EBITDA margins contracted 251 bps to 30% YoY (I-direct estimate:...

Integrated business model, customer stickiness to the fore SIL's revenues grew at ~21% CAGR in FY13-18 to | 1423 crore due to new client addition on a regular basis and scaled up revenues from existing clients led by integrated service offerings, high data integrity ethos and continuous endeavour to move up the value chain. The capabilities have been vindicated by proven customer stickiness as eight of the top 10 global pharma companies have been availing the services for the last five years. The proposed foray into contract manufacturing...

ICICI Securities Ltd | Retail Equity Research Revenues grew 39.5% YoY to | 406 crore (I-direct estimate: | 426 crore) mainly on the back of 1) | 40 crore of one-off raw material pass through 2) traction in biologics manufacturing, discovery services and chemical development services, 3) lower base of Q1FY18 (fire incident impact) and 4) favourable currency movement EBITDA margins declined 608 bps to 26.9% YoY (I-direct estimate: 32.2%) mainly due to pass through of raw material billing...

ICICI Securities Ltd | Retail Equity Research Revenues grew 41% YoY to | 409 crore (I-direct estimates: | 381 crore) mainly due to lower base of Q4FY17 (fire incident impact) and strong growth in chemical development and discovery services supported by biologics business EBITDA margins declined 281 bps to 31.6% YoY (I-direct estimate: 33.1%) mainly due to higher other expenses. EBITDA increased 29% YoY to | 129 crore (I-direct estimates: | 126 crore...

Syngene posted strong Q3 revenue growth of 17% YoY (~5% ahead of our estimate). EBITDA margin at 32.5% was weighed down by higher growth in staff cost (19% YoY) and other expenses (24% YoY).

ICICI Securities Ltd | Retail Equity Research Revenues grew 17% YoY to | 388 crore, above I-direct estimate of | 372 crore, driven by a strong performance in the chemicals business from the development & manufacturing vertical and continued traction in the discovery vertical EBITDA margins declined 144 bps to 32.5% YoY (I-direct estimate: 33%) mainly due to higher employee and other expenses. EBITDA grew 12% YoY to | 126.1 crore (I-direct estimate: | 123 crore)...

Syngene is expected to post stronger growth from H2FY18 given (1) most of the business impacted by fire incident in Dec'16 will be generating revenue from Q3/ Q4FY18, (2) addition of large scale commercial manufacturing of intermediates and API's for innovator companies

Q2FY18 revenue grew 11% YoY (14% in cc terms), as growth is accelerating after the fire incident (6% YoY in Q1). EBITDA margin was healthy at 33.9% despite 22% YoY growth in staff cost and 14% YoY growth in other expenses. Revenue grew 12% YoY in cc terms in H1FY18.

ICICI Securities Ltd | Retail Equity Research Revenues grew 11% YoY to | 335 crore (I-direct estimate: | 320 crore) due to strong performance in development & manufacturing services and sustained growth in dedicated R&D; centres Gross margins improved 204 bps YoY to 76.1% but EBITDA margins declined 99 bps to 33.9% YoY (I-direct estimate: 33%) mainly due to higher employee expenses. EBITDA in value terms grew 7.5% YoY to | 114 crore (I-direct estimate: | 106 crore)...

Q1FY18 revenue grew 6% YoY (10% in cc terms) vs. 11% decline in Q4FY18 on recovery of 11% of sales which was affected by fire incident along with new capacity additions. Despite 16% YoY growth in staff cost, EBITDA margin was steady at 33% led by lower other expenses (due to hedging gains).

Syngene's net sales grew by 6% yoy to Rs 291cr and PAT grew by 3.7% yoy to Rs 62cr. EBITDA grew by 8.1% to Rs 96cr due to margin improvement led by superior business mix. EBITDA margin improved to 33% in 1QFY18 from 32.3% in 1QFY17.. We had expected PAT of Rs 61cr on the topline of Rs 296cr hence the result has met our expectations. What ..

SIL's revenues grew at ~24% CAGR in FY12-17 to | 1201 crore due to new client addition on a regular basis and scaled up revenues from existing clients led by integrated service offerings, high data integrity ethos and continuous endeavour to move up the value chain. The capabilities have been vindicated by proven customer stickiness as eight of the top 10 global pharma companies have been availing the services for the last five years. The proposed foray in contract manufacturing (CMO) services will further strengthen its service offering to clients. The...

Unique investment opportunity in drug research business: While almost all Indian pharma companies are in generic drugs business, Syngene supports its clients to invent new drugs. It has 8 of the top 10 global pharma companies as its clients and also has long term contracts with some big pharma companies. In our view Syngene provides a uni..