Syngene International Ltd. (SYNGENE) AI Stock Analysis

• Market Cap: ₹190.87B
• Dividend Yield: 0.19%
• Average Volume (3M): 59.93K
• Price to Earnings (P/E): 54.0
• Beta (1Y): 0.97
• Revenue Growth: 8.57%
• EPS Growth: -2.93%
• Country: IN
• Employees: 6,510
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 1.80
• Shares Outstanding: 402,939,420
• 10 Day Avg. Volume: 148,500
• 30 Day Avg. Volume: 59,929
• PEG Ratio: -20.51
• Price to Book (P/B): 6.10
• Price to Sales (P/S): 7.91
• P/FCF Ratio: 72.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹518.00 ▼(-21.29% Downside)

The score is primarily supported by solid financial performance (strong margins and low leverage), but it is meaningfully reduced by very weak technicals (price below all major DMAs with negative MACD and extremely low RSI/Stoch) and a demanding valuation (high P/E with minimal dividend yield).

Positive Factors

High gross and EBITDA margins

Sustained high gross and EBITDA margins indicate strong pricing power and operational efficiency across discovery and manufacturing services. Durable margin structure supports reinvestment in labs and capacity, cushioning profitability through project mix shifts and cyclical demand over months.

Low financial leverage

Very low leverage and a high equity ratio provide financial flexibility to fund capital projects, ramp manufacturing, or weather client payment cycles without refinancing stress. This balance-sheet strength reduces structural risk and supports strategic investments over the medium term.

Strong cash generation metrics

High OCF-to-net-income signals quality earnings and robust conversion, while near-par FCF demonstrates the business can fund growth and sustain operations despite capex. Durable cash conversion underpins capacity expansion, customer investments, and long-term strategic optionality.

Negative Factors

Modest revenue growth

Low single-digit top-line growth suggests limited organic expansion or pressure on new program wins in a competitive CRDMO market. Persistently modest revenue gains can cap operating leverage, constrain EPS expansion, and force reliance on margin improvement or M&A to drive material shareholder returns.

Slightly declining net margin

A downward drift in net margin erodes the benefit of high gross margins and may reflect rising operating costs, pricing pressure, or mix shifts toward lower-margin services. If sustained, margin compression reduces free cash flow and limits capacity to invest without higher returns or cost actions.

Free cash flow pressure from capex

Although cash generation is strong, declining FCF growth driven by higher capex implies elevated investment needs to expand or upgrade facilities. Persistent capex pressure can tighten near-term cash retention, delaying returns on investment and increasing reliance on steady utilization to justify spending.

Syngene International Ltd. Business Overview & Revenue Model

Company Description

Syngene International Limited, a contract research and manufacturing company, provides drug discovery and development services in India, the United States, and internationally. The company provides discovery chemistry services, such as medicinal and synthetic chemistry, library and peptide synthesis, biomolecules, organic electronic materials, and computational and analytical chemistry; and discovery biology services in the areas of recombinant DNA engineering, cell line development, hybridoma technology, sequencing, protein sciences, screening and assay biology, DMPK, in vivo pharmacology, toxicology, and biologicals. It also offers exploratory/discovery, in vitro and genetic, and developmental and reproductive toxicology services, as well as acute, sub-chronic, and chronic toxicity studies; and chemical, formulation, analytical, and clinical development services, as well as commercial manufacturing services. In addition, the company provides lead generation, preclinical development, API, and drug product development services; and clinical trial management, pharmacokinetic analysis/bioanalytical, central lab, biometrics and clinical data management, regulatory, medical monitoring, pharmacovigilance, and medical writing services. Further, it offers other drug modalities, which include peptides, oligonucleotide synthesis, antibody drug conjugate, PROTACs, and CAR T-cell therapy services. The company serves pharmaceutical, biotechnology, nutrition, animal health, consumer goods, specialty chemical, and other companies. It has partnerships and collaborations with Bristol-Myers Squibb Co.; Baxter Inc.; and Amgen Inc. The company was incorporated in 1993 and is headquartered in Bengaluru, India. Syngene International Limited is a subsidiary of Biocon Limited.

How the Company Makes Money

Syngene generates revenue primarily through its contract research and manufacturing services. The company operates on a fee-for-service model, where clients pay for specific projects or services rendered. Key revenue streams include drug discovery services, development services, and commercial manufacturing. Additionally, Syngene has formed significant partnerships with multinational pharmaceutical companies, which often lead to long-term contracts and collaborations. These partnerships not only provide a steady income stream but also enhance Syngene's reputation and capabilities in the market. Furthermore, the company benefits from economies of scale and operational efficiencies, which contribute to its profitability.

Syngene International Ltd. Financial Statement Overview

Summary

Strong profitability and operating efficiency (gross margin 74.12%, EBITDA margin 31.46%) and a healthy, low-leverage balance sheet (debt-to-equity 0.12, equity ratio 69.55%). Offsets include modest revenue growth (4.41%) and a slightly declining net margin (13.62%) with some pressure on free cash flow retention.

Income Statement

Syngene International Ltd. has demonstrated consistent revenue growth with a revenue growth rate of 4.41% from 2024 to 2025. The gross profit margin is strong at 74.12%, indicating efficient cost management. However, the net profit margin has slightly decreased to 13.62%, which could be a potential area of concern. The EBIT and EBITDA margins are healthy at 16.78% and 31.46%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a stable balance sheet with a healthy equity ratio of 69.55%, indicating strong asset backing. The debt-to-equity ratio is low at 0.12, suggesting low leverage and financial stability. Return on equity stands at 10.50%, reflecting solid shareholder returns. Overall, the balance sheet indicates financial health with a cautious approach to debt.

Cash Flow

Syngene International Ltd. has shown a positive free cash flow growth rate, although the rate has decreased due to capital expenditures. The operating cash flow to net income ratio is robust at 2.35, indicating efficient cash generation. The free cash flow to net income ratio is 0.80, suggesting effective capital management, but there is room for improvement in cash retention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.27B	36.42B	34.89B	31.93B	26.04B	21.84B
Gross Profit	25.42B	24.41B	23.50B	21.56B	17.12B	15.28B
EBITDA	10.41B	9.91B	10.30B	9.59B	7.26B	6.44B
Net Income	5.07B	4.96B	5.10B	4.64B	3.96B	4.05B
Balance Sheet
Total Assets	66.74B	67.96B	61.52B	58.31B	55.64B	48.83B
Cash, Cash Equivalents and Short-Term Investments	11.63B	13.97B	10.77B	13.54B	12.81B	10.65B
Total Debt	5.74B	5.78B	5.55B	8.15B	10.22B	8.93B
Total Liabilities	18.28B	20.69B	18.94B	22.13B	22.66B	20.62B
Stockholders Equity	48.46B	47.27B	42.58B	36.18B	32.98B	28.21B
Cash Flow
Free Cash Flow	0.00	3.98B	5.50B	3.05B	1.05B	2.55B
Operating Cash Flow	0.00	11.68B	10.42B	8.38B	5.81B	7.01B
Investing Cash Flow	0.00	-7.45B	-4.96B	-6.88B	-6.12B	-6.28B
Financing Cash Flow	0.00	-1.42B	-5.51B	-3.40B	-313.00M	580.00M

Syngene International Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 658.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SYNGENE, the sentiment is Negative. The current price of 658.1 is above the 20-day moving average (MA) of 590.20, above the 50-day MA of 623.38, and above the 200-day MA of 644.13, indicating a bearish trend. The MACD of -42.17 indicates Positive momentum. The RSI at 9.48 is Positive, neither overbought nor oversold. The STOCH value of 2.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SYNGENE.

Syngene International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAURUSLABS	66 Neutral	₹521.02B	61.76	―	0.15%	25.83%	421.20%
BIOCON	63 Neutral	₹593.57B	92.32	―	0.12%	10.62%	-66.88%
GLAND	63 Neutral	₹304.07B	35.89	―	1.07%	-1.51%	14.27%
SYNGENE	62 Neutral	₹190.87B	54.00	―	0.19%	8.57%	-2.93%
ASTERDM	62 Neutral	₹286.68B	86.44	―	0.84%	-36.14%	-93.99%
GLENMARK	53 Neutral	₹569.17B	53.44	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Syngene International Ltd. Corporate Events

Syngene Publishes December-Quarter Financial Results in Newspapers and Online

Syngene International Ltd. has notified stock exchanges that it has published its financial results for the quarter and nine months ended December 31, 2025, in the Financial Express (all-India edition) and Vijayavani (Bengaluru edition), in line with regulatory disclosure requirements. The company has also made these financial details available on its website, underscoring its compliance with listing obligations and its efforts to maintain transparency and timely communication with shareholders and market participants.

Syngene Extends and Expands Bristol Myers Squibb Research Alliance to 2035

Syngene International has extended and expanded its long-term strategic research collaboration with Bristol Myers Squibb through 2035, broadening the scope of integrated services from early discovery through development, manufacturing and clinical support to commercialization. The renewed agreement deepens a partnership that began in 1998 and centers on the Biocon Bristol Myers Squibb Research and Development Center in Bengaluru, where around 700 Syngene scientists operate as an extension of BMS’s global research organization, strengthening Syngene’s role as a critical R&D and manufacturing hub for key therapeutic areas and reinforcing its position as a leading end-to-end CRDMO partner to large pharma.

Syngene Wins Karnataka High Court Ruling in Rs 48.9 Crore Tax Refund Case

Syngene International has received a favourable order from the High Court of Karnataka in a long-running tax matter concerning assessment years 2010-11, 2011-12 and 2012-13. The court allowed the company’s writ petition challenging the adjustment of income tax refunds for 2010-11 and 2011-12 against outstanding demands for other years and the non-issue of a refund for 2012-13, together aggregating to about Rs 48.9 crore, and directed the tax authorities to refund the amount with interest, subject to verification. Syngene said it does not expect a material impact on its financials, operations or activities from the order and is analysing the judgment to determine its next steps, with no penalties or compliance aberrations noted by the court.

Syngene Revamps Green Power Strategy With Rs 35 Million Stake in O2 Renewable Energy V

Syngene International Ltd. has revised its renewable energy sourcing plan by entering into a Power Purchase Agreement and Share Purchase Agreement with O2 Renewable Energy V Private Limited, an O2 Group special purpose vehicle that operates a wind-solar hybrid power plant in Karnataka. In place of an earlier arrangement with another O2 entity, the company will now invest Rs. 35 million to acquire at least a 26% equity stake in O2 Renewable Energy V, primarily through purchasing shares from Dalmia Cement (Bharat) Ltd., in order to secure captive status under India’s Electricity Act and increase the share of renewable power in its overall energy consumption, with the transaction expected to be completed in tranches by March 31, 2026.

Syngene International Updates Investors with Presentation

Syngene International Limited has announced an investor presentation, which aligns with their ongoing communication strategy as per SEBI regulations. The presentation, shared with investors and analysts, reiterates previously disclosed information, ensuring transparency and maintaining investor confidence.

Syngene International Schedules Analyst Meeting with LIC

Syngene International Ltd. has announced a scheduled meeting with the Life Insurance Corporation of India, set for November 28, 2025, in Mumbai. This meeting, which will be a physical one-on-one interaction, aims to engage with analysts and institutional investors, although no unpublished price-sensitive information will be disclosed. This engagement reflects Syngene’s ongoing efforts to maintain transparency and foster strong relationships with key stakeholders, potentially impacting its market perception positively.

Syngene Schedules Investor Meeting with Goldman Sachs

Syngene International Ltd. has announced a scheduled meeting with Goldman Sachs on November 28, 2025, in Mumbai. This meeting is part of their ongoing engagement with analysts and institutional investors, and the company has assured that no unpublished price-sensitive information will be disclosed during the meeting.

Syngene Schedules Analyst Meeting with USB Securities

Syngene International Ltd. announced a scheduled meeting with USB Securities, an analyst/institutional investor, to be held on November 28, 2025, in Mumbai. The company assured that no unpublished price-sensitive information will be disclosed during this meeting, reflecting its commitment to transparency and regulatory compliance.

Syngene International Announces Key Management Change

Syngene International Ltd. announced a significant change in its senior management with the departure of Mr. Alex Del Priore, Head of Large Molecules CDMO, and the appointment of Dr. Rohtash Kumar as the new Head of CDMO for both small and large molecules. This transition is expected to strengthen Syngene’s capabilities in pharmaceutical operations, leveraging Dr. Kumar’s extensive experience in R&D and manufacturing, which could enhance the company’s competitive positioning in the global CDMO market.