Syngene International shares suffered another 8% decline on Monday, January 27, as reported by Equitymaster, extending the pharmaceutical company's brutal losing streak to ten consecutive trading sessions. The latest drop brings the total decline to 23% over this extended period, with the stock hitting its lowest level since August 2020 at ₹501.4. This represents a significant deterioration from the previous 15% decline reported over nine sessions, highlighting the intensifying selling pressure on the stock.
The December quarter results revealed significant financial challenges for Syngene International. As reported by CNBC TV18, the company's profit fell nearly 90% compared to the same quarter last year, while revenue declined 3% on a year-on-year basis. The operating performance was equally concerning, with Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) contracting by 26%. Margins compressed significantly to 22.8% from 33.8% during the corresponding quarter in the previous year.
According to CNBC TV18, Syngene International attributed the third quarter performance to the ongoing impact from a single product from one of its large-molecule biologics clients. The company indicated that with the exception of this specific issue, the business has progressed steadily during the quarter.
Brokerage firm Jefferies has downgraded the stock to underperform from its previous hold rating, as reported by CNBC TV18. The firm also slashed its price target to ₹480 from ₹660 earlier. Among the nine analysts covering Syngene International, three have a sell rating, four maintain a buy rating, and two have assigned a hold rating to the stock.
