Syngene International - Setting the stage for capacity driven growth: Angel Broking

Views of Mr. Shrikant Akolkar (Research Analyst, Angel Broking):

"Syngene is a Bengaluru based Custom Research Organisation. Company is in the Contract Research Outsourcing (CRO) business and has capacity to perform discovery, pre-clinical and clinical research on potential drug candidates.

Outlook and Valuation: At the CMP of INR 478, Syngene trades at 23.0x its FY2019E EPS. We compare Syngene with its Chinese peer WuXi PharmaTech, which before delisting, traded at ~24x. While WuXi's growth was fueled by acquisitions, Syngene's is mostly an organic growth story and has headroom for both organic (capacity utilization) and inorganic growth. We rate Syngene 'Buy' with Price Target of INR 564 (27.0x of FY2019E EPS)."

Source : Equity Bulls

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