Syngene International - Q1 FY22 Result Report - YES Securities

(Rating: SELL, TP: Rs515, Downside: 21%)

- After an outsized Remdesivir sales boost in Q1 and no change to 15% revenue growth guidance in FY22, rest of the fiscal translates into just 8-9% yoy growth

- 20% capacity utilization of Mangalore facility in 2 years results in 2% annual revenue boost in FY22/23.

- We assign low probability on any revenue surprise for rest of the year which leaves little room for further rerating.

- Introduce FY24 forecast and bake in 23% growth over FY23 (vs 14% cagr over FY20-23) as FDA/EMA approvals would drive Mangalore utilization. Roll over target 27x PE to FY24 but retain SELL with revised TP Rs515 (Rs400 earlier).

Shares of Syngene International Ltd was last trading in BSE at Rs. 652.8 as compared to the previous close of Rs. 669.1. The total number of shares traded during the day was 85395 in over 3868 trades.

The stock hit an intraday high of Rs. 687.5 and intraday low of 647.05. The net turnover during the day was Rs. 56813755.

Source : Equity Bulls

Keywords