Here are Brokerage Reviews & Recommendations on the
Initial Public Offer - IPO of of Syngene International IndiaNivesh Research Analysts Daljeet S. Kohli & Tushar Manudhane said,
We recommend subscribing for the IPO for 15-20% gain in near term. There is only one molecule under CRAMS for which NDA is filed by innovator. There are other two molecules which are in late-stage clinical trials. We would look at the progress of the molecule for which NDA is filed before factoring any further potential upside in sales as well as profitability of SIL. The issue size is 22mn shares in the price band of Rs240-250.
IIFAnalyst has the Following Review
At the upper price band of Rs250, Syngene is available at ~21x FY17E earnings, at par with Divis’ valuation. We like the underlying business and strategic direction (shift towards commercial manufacturing) but believe valuations appear stretched with limited room for upsides in the near term. That said, given the healthy growth in revenues/PAT over a 3-4 year horizon, we would look out for opportunities to accumulate the stock at lower multiples post listing.
ICICI Direct has the following Views,
Due to its integrated service offerings coupled with consistent performance and high data integrity ethos, Syngene enjoys high recall value, which is reflected in the fact that eight out of top 10 clients have been engaged with the company for the past five years. At the IPO price band of | 240-250, the stock is available at 30-31x on FY15 EPS of | 8.0.
CanBank Securities has the following View,
At the IPO price band of Rs.240-250, the stock is available at 27-29x on FY15 on EPS of 8.9. Company is fairly valued as compared to its global peers at the current IPO price. However, one may subscribe to this IPO for listing benefits In the short term and considering the promoters’ pedigree in the group company in the past and better business opportunities in the future.
Way2Wealth Securities in a research note said,
At the offer price bands, the issue is available at P/E of 27.3x – 28.4x its FY15 EPS of ~`8.8. We believe there are great opportunities for CROs from the outsourcing markets and thus increasing their share towards global R&D expenditures. The company’s increasing clientele, expanding capacities as well as capabilities, along with plans for forward integration into commercial manufacturing will enable the company to drive growth by benefiting from the opportunities in future. Hence we recommend SUBSCRIBE to this issue.
Reliance Securities Analyst Sapna Jhawar said
Assuming the company continues to expand its client base by 5% every year, we foresee Sales/PAT CAGR at 18%/14%, respectively over FY15-17E with steady state margins at 32-33%. We have not factored in any upside from the CMO business. Entry into the CMO business will open up the large revenue source (like Divi’s) and make Syngene a complete turnkey solution provider amongst the Indian bourses. We recommend a SUBSCRIBE to the issue.
Nirmal Bang Analyst Runjhun Jain said,
On the valuation front, at the upper price of band of Rs 240-Rs 250, SIL is commanding at PE of 18x of our rough calculations for FY17E. Considering the healthy balance sheet, strong growth and robust profitability, We recommend subscribing the issue for long term gains.
