Syngene International Ltd.
ISIN: INE398R01022 • Market Cap: ₹16,030 Cr
The 5-Pillar Quality Audit for Syngene International Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (22.3%), Return on Capital Employed (9.9%), and equity compounding (6.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (1.1%) and 3Y PAT CAGR (-24.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 72.53 vs PEG of 4.42 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 52.6%, backed by 39.8% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Deep Institutional Sponsorship (39.8%)
Mutual funds, domestic DIIs, and foreign FIIs hold 39.8%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 9.9%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: 1.1%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Priced for Perfection (P/E: 72.53)
A steep valuation multiple of 72.53 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking SYNGENE against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 58/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Healthcare Sector Peer Comparison
Compare SYNGENE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Syngene International Ltd. (SYNGENE)Current | 58/100 | ₹16,030 Cr | 72.53 | 9.9% | 0.00 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Syngene International Ltd.
Q:What is the 5-Pillar Fundamental Score for Syngene International Ltd. (SYNGENE)?
Syngene International Ltd. has a RupeeTools Fundamental Score of 58/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (62/100), Financial Health (81/100), Growth (28/100), Valuation (25/100), and Ownership Quality (85/100).
Q:Is SYNGENE fundamentally strong for long-term investment?
SYNGENE currently holds a moderate quality rating of 58/100. While it operates in the Healthcare sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does SYNGENE pass the Coffee Can Investing filter?
No. SYNGENE does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does SYNGENE compare against other Healthcare peers?
Within India's Healthcare sector, SYNGENE trades at a P/E of 72.53 and generates an ROCE of 9.9%. Compare its 5-Pillar score of 58/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.