Syngene International Ltd.
NSE: SYNGENESyngene International Ltd.: A 30-second snapshot
Syngene International is a Bengaluru-based contract research and manufacturing organisation trading at 454.05, down 27.7% over the past 12 months and 37.7% off its 52-week high. FY26 net profit fell approximately 20%, dragged by lower biologics client revenue, pushing trailing PE to 52.3 on a ROE of 6.62%. The debt-to-equity ratio of 9.47 is an outlier among Pharma peers, though the debt trend has been classified as declining.
P/E
52.3
Forward P/E
35.6
ROE
+6.6%
Debt / Equity
9.47
Profit Margin
+8.5%
Div. Yield
+0.3%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
38/100
News
8 headlines · 0 positive · 3 negative
Syngene International stock (INE398R01022): Q4 sales up 1.82% amid sell rating - AD HOC NEWS
AD HOC NEWS
Syngene's FY26 profit falls 20% as biologics client impact weighs on margins - Business Today
Business Today
Syngene International Q4 net profit falls 19%, but revenue up 2%; declares dividend - CNBC TV18
CNBC TV18
We Think You Can Look Beyond Syngene International's (NSE:SYNGENE) Lackluster Earnings - simplywall.st
simplywall.st
Indo-Asian News Service - IANS
IANS
Recent context
- ·Q4 FY26 results (reported April 29) showed net profit down 19% year-on-year and full-year FY26 profit down approximately 20%, attributed primarily to the impact of a key biologics client on margins; revenue grew only 1.82% in Q4.
- ·News sentiment across 8 articles was negative overall (0 positive, 3 negative, 5 neutral), with negative coverage concentrated on the Q4 earnings miss and the biologics client headwind rather than any new operational concern.
- ·Mean analyst rating of 2.125 across 8 analysts (1-5 scale, lower = more constructive) reflects a range of views; one source cited a sell rating alongside the Q4 revenue figure, indicating coverage is not uniformly constructive.
Strengths
- +FCF generation has been positive in 4 of the last 5 measured years, indicating the business has historically converted revenue to cash despite current margin pressure.
- +Forward PE of 35.6 represents a meaningful compression from the trailing PE of 52.3, reflecting analyst expectations of earnings recovery if revenue growth accelerates from its current 5-year run-rate of 1.8%.
- +Debt trend is classified as falling, and the company declared a dividend in Q4 FY26 despite the profit decline, suggesting management views the balance sheet as serviceable at current leverage.
- +Price has recovered above the 50-DMA (425.38) after a prolonged drawdown, with near-term support levels clustered at 426.50 and 417.45 within a 7% band of the current price.
Weaknesses
- −5-year earnings CAGR of -19.5% and a FY26 profit decline of approximately 20% represent multiple consecutive years of earnings contraction, a high-severity fundamental risk flag.
- −Debt-to-equity of 9.47 is substantially above the Pharma sector norm — Cipla and Dr. Reddys operate below 1.0 D/E — making Syngene an outlier on leverage, a high-severity solvency-watch flag.
- −Quality score of 19 ranks 6th of 6 in the Pharma peer group, sitting below SUNPHARMA (50), MAXHEALTH (54), APOLLOHOSP (42), and CIPLA (24) by a wide margin.
- −Price is 20.2% below the 200-DMA (568.74) and has been in an extended downtrend over the past 12 months, with the nearest major resistance at 518.55 — 14.2% above current levels.
Open questions
- ?Does the biologics client concentration that weighed on FY26 margins represent a temporary project-cycle issue, or does it reflect a structural shift in client mix that could persist for multiple years?
- ?How does Syngene's debt-to-equity of 9.47 translate into annual debt-service obligations relative to operating cash flow, and at what revenue growth rate does the leverage become self-reinforcing?
- ?Given that forward PE of 35.6 implies a substantial earnings recovery, what specific pipeline wins or client additions would need to materialise in FY27 for that recovery to be visible in reported numbers?
- ?How does Syngene's CRO business model differ from generics peers such as Cipla and Dr. Reddys in terms of revenue visibility, contract duration, and margin structure — and does that difference justify a premium or discount to sector median PE of 41.3?
Peer comparison: Pharma
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| SYNGENE | Syngene International Ltd.You're viewing | 52.3 | +6.6% | 19 |
| Industry avg | across 5 peers | 46.9 | +11.8% | 37 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 72.4 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 41.3 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.5 | — | 42 |
| CIPLA | Cipla Ltd. | 29.8 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 26.7 | +11.8% | 17 |
Technical state
Current price
₹454.05
SMA 50
₹425.38
SMA 200
₹568.74
RSI (14)
52.0 (neutral)
From 52w high
-37.7%
1Y return
-27.7%
3M return
-0.2%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings CAGR of -19.5% and FY26 full-year profit down approximately 20% (confirmed by Q4 results) indicate multiple consecutive years of declining earnings; ROE of 6.62% has not exceeded 15% in any of the measured years, reflecting persistent sub-par capital returns.
- highDebt-to-equity of 9.47 is materially elevated for a pharma-CRO business; Cipla and Dr. Reddys carry single-digit D/E ratios. Although the debt trend is classified as falling, the absolute level warrants close monitoring for solvency risk.
- mediumPrice at 454.05 is 20.2% below the 200-DMA (568.74) and down 27.7% over 12 months; 52-week drawdown of 37.7% is among the deepest in the Pharma peer set; the stock has been below the 200-DMA for an extended period.
- mediumQuality score of 19 ranks last (6th of 6) among Pharma sector peers; profit margin of 8.47% and 5-year revenue growth of 1.8% are the weakest in the cohort, with forward PE of 35.6 still pricing in a substantial earnings recovery.
- lowNews sample is sparse (8 articles total, 0 positive, 3 negative). All three negative headlines relate to Q4 and FY26 earnings declines; small sample limits sentiment confidence.
Cross-section contradictions
- Trailing PE of 52.3 and forward PE of 35.6 imply a meaningful earnings recovery is priced in, yet 5-year earnings CAGR is -19.5% and FY26 profit fell approximately 20%; no reported operational catalyst yet bridges this gap in expectations.
- Price is 27.7% lower over 12 months and 37.7% below the 52-week high, yet it has recovered above the 50-DMA (425.38) in recent weeks, a short-term directional reversal within a structurally extended downtrend.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days