Examining the technical parameters, Syngene International’s trend has shifted from mildly bearish to bearish. Weekly and monthly Bollinger Bands indicate bearish momentum, while daily moving averages also align with this outlook. The MACD presents a mixed picture with a mildly bullish weekly signal contrasted by a bearish monthly trend. Other technical indicators such as the KST and Dow Theory reflect bearish tendencies on a monthly basis, with weekly signals showing mild bullishness or neutrality. The Relative Strength Index (RSI) remains neutral on both weekly and monthly timeframes, suggesting no immediate overbought or oversold conditions. Overall, the technical landscape signals caution for investors monitoring short to medium-term price movements.
Only 1% make it here. This Large Cap from the Gems, Jewellery And Watches sector passed our rigorous filters with flying colors. Be among the first few to spot this gem!
- Highest rated stock selection
- Multi-parameter screening cleared
- Large Cap quality pick
From a valuation perspective, Syngene International is positioned at a premium relative to its sector peers. The company’s Price to Book Value stands at 5.5, which is considered high within the Pharmaceuticals & Drugs industry. Its Return on Equity (ROE) is recorded at 9.9%, reflecting moderate profitability. The Price/Earnings to Growth (PEG) ratio is notably elevated at 37.9, indicating that the stock’s valuation may not be fully supported by its earnings growth trajectory. Despite this, the company maintains a low average Debt to Equity ratio of zero, suggesting a conservative capital structure with minimal leverage risk.
Financial trends for Syngene International reveal subdued performance in recent quarters. The company’s net sales have grown at an annual rate of 12.63% over the past five years, while operating profit has expanded at 9.01% annually during the same period. However, the latest quarterly results for Q2 FY25-26 show a decline in profitability metrics. Profit Before Tax excluding other income (PBT LESS OI) stood at ₹69.80 crores, reflecting a 52.6% reduction compared to the previous four-quarter average. Similarly, Profit After Tax (PAT) was ₹67.10 crores, down by 47.1% relative to the same benchmark. Operating profit to interest coverage ratio for the quarter was at 15.11 times, the lowest recorded in recent periods. These figures highlight challenges in sustaining earnings momentum amid prevailing market conditions.
In terms of stock price performance, Syngene International has underperformed key market indices over various time horizons. The stock’s return over the past year is -23.66%, contrasting with the Sensex’s 9.48% gain during the same period. Year-to-date returns show a decline of 24.86% for the stock, while the Sensex has appreciated by 8.36%. Over longer durations, the stock’s 3-year return of 7.51% trails the Sensex’s 37.31%, and its 5-year return of 12.60% is significantly below the Sensex’s 91.65%. However, the 10-year return of 258.44% for Syngene International surpasses the Sensex’s 232.28%, indicating stronger performance over the very long term.
Syngene International or something better? Our SwitchER feature analyzes this small-cap Healthcare Services stock and recommends superior alternatives based on fundamentals, momentum, and value!
- SwitchER analysis complete
- Superior alternatives found
- Multi-parameter evaluation
Quality assessment of Syngene International reflects a mixed outlook. The company benefits from high institutional holdings at 40.93%, which may provide stability given the analytical resources of such investors. However, the recent financial results and technical indicators suggest caution. The stock’s 52-week price range spans from ₹598.55 to ₹960.00, with the current price near ₹645.20, indicating a position closer to the lower end of its annual trading band. Daily price fluctuations have been modest, with the latest session showing a decline of 0.98% and a trading range between ₹641.30 and ₹652.00.
In summary, the adjustment in Syngene International’s evaluation is driven by a combination of technical signals pointing to bearish momentum, valuation metrics that suggest a premium pricing relative to earnings growth, financial trends indicating recent profit contractions, and quality factors reflecting institutional confidence but tempered by recent performance. Investors analysing this Healthcare Services stock should consider these multi-dimensional factors in the context of broader market conditions and sector dynamics.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
