July 23, 2015 Rating matrix Syngene Internationalcontent.icicidirect.com/ULFiles/UploadFile_201572385624.pdf · Incorporated in 1993 as a subsidiary of Biocon, Syngene International

July 23, 2015

IPO Review

ICICI Securities Ltd | Retail Equity Research

Strong, sustainable business model… Incorporated in Bengaluru in 1993, Syngene International (SIL) is the contract research organisation (CRO) arm of Biocon Ltd. SIL caters to the outsourced research requirements of global pharmaceutical, biotechnology, agrochemical, consumer health, animal health, cosmetic and nutrition companies on a fee-based contractual arrangement. SIL provides a gamut of integrated, end-to-end services to develop novel molecular entities (NMEs) or new drugs. In this process, it works with customers to conduct discovery (from target identification to candidate selection), development (including pre-clinical and clinical studies, analytical and bio-analytical evaluation, formulation development and stability studies) and pilot manufacturing (scale-up, pre-clinical and clinical supplies) under one roof. SIL has a client base of 221 overseas customers including large global pharma players like Bristol–Myers Squibb, Abbott and Baxter among others. The company has a team of 2122 scientists including 258 PhDs. It owns a laboratory and pilot manufacturing facility spread over 900000 sq ft located in Bengaluru.

Investment rationale Well poised to cash in on growing global pharma R&D outsourcing trend Global pharmaceutical players are facing structural issues such as profit pressures arising from impending patent cliff, drying product pipeline and rising R&D costs. Surprisingly, however, the new product approvals from the USFDA are on the rise. Hence to maintain the cost balance at one end and maintain the new product introduction at the other, these players are inclined to outsource some of the R&D budget to CROs like Syngene. Also, the need for greater flexibility has reduced the willingness of these players to incur large fixed costs associated with large scale R&D programmes. Outsourcing allows clients to convert a portion of their R&D budgets from a fixed to a variable cost, giving them greater flexibility to shift strategic and development priorities in response to market conditions. According to Frost & Sullivan estimates, R&D spend in the global pharma space was ~US$139 billion in 2014 whereas the CRO pie was ~US$44 billion (32%). Indian CRO advantages- cost arbitrage, skills availability Historically, India has offered a significant cost advantage and skilled personnel. However, as global pharma outsource more R&D functions, outsourcing to India is increasingly seen as a strategic move to garner quality and value, rather than just a tactical decision to lower costs. High recall value 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.

Key concern

Growing trend of global pharma consolidation.

Priced at 27-29x on FY15 EPS of | 8.8

At the IPO price band of | 240-250, the stock is available at 27-29x on FY15 EPS of | 8.8.

Syngene International Price band | 240 - 250

Rating matrix

Rating : Subscribe Issue Details Issue Opens 27-Jul-15

Issue Closes 29-Jul-15

Issue Size (| crore) 528-550

Price Band (|) 240-250

No. of Shares on Offer (crore) 2.2

QIB (%) 50.0

Non-Institutional (%) 15.0

Retail (%) 35.0

Objects of the Issue It is essentially an offer for sale wherein no proceeds from the IPO will be ploughed back in the company. Selling shareholders are Biocon Ltd. (11% stake)

Shareholding Pattern Pre-Issue Post-Issue

Promoter & Promoter Group 85.5 74.5

Institutional 11.1 22.1

Non-Institutional 3.3 3.3

Financial Summary | crore FY11 FY12 FY13 FY14 FY15

Total Revenue 323 418 554 708 872

EBITDA 100 138.6 173 222.6 292.8

EBITDA Margins (%) 31.0 33.1 31.2 31.5 33.6

PAT 27.2 71 102 134.8 175

EPS 1.4 3.6 5.1 6.7 8.8

Research Analyst

Siddhant Khandekar [email protected]

Mitesh Shah [email protected]

Nandan Kamat [email protected]

Page 2ICICI Securities Ltd | Retail Equity Research

Exhibit 1: Key Financials (| crore) FY11 FY12 FY13 FY14 FY15

Revenues 322.9 418.2 554.2 707.7 871.6

EBITDA 100.0 138.6 172.7 222.6 292.8

PAT 27.2 71.0 102.1 134.8 175.0

EBITDA Margins (%) 31.0 33.1 31.2 31.5 33.6

PAT Margins (%) 8.4 17.0 18.4 19.0 20.1

RoE 12.3 23.9 19.7 20.4 20.7

RoCE 7.4 18.0 19.7 16.6 17.5

Source: RHP, ICICIdirect.com Research

Company Background

Incorporated in 1993 as a subsidiary of Biocon, Syngene International (SIL) is a leading contract research organisation (CRO), which supports R&D programmes. The company’s multi-disciplinary skills in integrated drug discovery and development include capabilities in medicinal chemistry, biology, toxicology, custom synthesis, process R&D, cGMP manufacturing, formulation and analytical development. SIL offers outsourced services to support discovery and development for R&D driven organisations across industrial sectors like pharmaceuticals, biotechnology, biopharmaceuticals, neutraceuticals, animal health and agro-chemicals. CRO services span the range of R&D activities from new molecular entity (NME) discovery, development and manufacturing. The company provides significant cost advantage to companies seeking to minimise their R&D spends. The lower cost structure in Asia Pacific region helps in reducing R&D spend by reducing unit cost of R&D output. It manages a pool of 2122 scientists including 258 PhDs and 1665 scientists with masters degree, to ensure timely execution of projects, cost effectiveness and quality of the projects, confidentiality and protection of intellectual property. The company owns state-of-the-art research facilities spread over 900000 sq ft, certified by major regulatory bodies. Syngene today currently caters to many leading global players in pharma/biotech, agrochemical, chemical, nutrition and animal health industries. A broad portfolio of service offerings with an established track record enables it to support the discovery and development continuum for various R&D programmes of 221 clients, globally ranging from large pharma companies to small biotechnology companies. It has successfully collaborated with eight out of the top 10 global pharmaceutical players including Bristol-Myers Squibb, Baxter and Abbott. Over the years, it has evolved from a discovery chemistry and discovery biology-focused CRO to an integrated provider of discovery and development services for NMEs across a range of domains including small molecules, large molecule biologics, ADCs and oligonucleotides.


Three main clients-

Source: Company, ICICIdirect.com Research

The company currently conducts laboratory and manufacturing activities at two primary facilities-

• Bommansandra, Bengaluru • Bommansandra Industrial Area, Bengaluru.

Apart from this, it is in the process of establishing a new commercial-scale facility in Mengaluru (SEZ) to manufacture novel small molecules for innovator companies in pharmaceutical, agrochemical and other industrial sectors. Revenue break-up SIL derives ~95% of the revenues from exports. In terms of classification on contractual basis, it derives ~36% of the revenues from long term dedicated contracts with a contractual commitment of five years and more. All the three contracts discussed above are for dedicated contracts. In this case, the company offers a dedicated, customised and ring-fenced infrastructure in line with client’s requirements. These dedicated centres are generally multi-disciplinary, full time engagements that support the R&D requirements of our clients. The remaining 64% come from full time equipment (FTE) and fee for service (FFS) contracts. In FTE contracts, the company does billing based on the number of scientists deployed. In this case there is an agreement with the clients for a minimum utilisation of a specified number of scientists dedicated to their work. The scope of services and deliverables under FTE contracts generally evolves over time. The FTE contracts are generally renewable annually. FFS contracts are short-term in nature. In


FFS contracts, the agreement is for fixed price for agreed services within a defined scope. Exhibit 2: Revenue break-up

Others (FTE+FFS)36%

Dedicated64%

Source: RHP, ICICIdirect.com Research Exhibit 3: Operating cost break-up

Other expenses24%

Employee exp35%

Raw material exp41%



Exhibit 4: Syngene’s key events Date Event

1994 Initiated operations as a CRO with services in Chemistry & Biology

1998 Granted 100% Export oriented unit (EOU) status by the Government of India.

1999 First operational expansion in R&D by way of expansion of lab space to over 23,000 sq.ft.

2000 Clinigene International Limited was incorporated as a 100% subsidiary of Biocon to provide clinical research services to domestic and multinational companies

2001 Forayed into chemical development with a dedicated manufacturing facility

2003 Moved to Biocon Park, a 90 acre biopharmaceutical SEZ with operations spread over [65,000 sq. ft.]

2007 Bristol Myers Squibb and Syngene signed the first long term contract to set up, our first dedicated R & D Centre.

2007 Expansion of research facilities at Biocon SEZ to 148,000 sq.ft .

2007 Crossed an annual turnover of over Rs.1,000 million in Financial year 2007.

2009 Dupont Crop Protection and Syngene extended a partnership for R&D services

2009 Expansion of manufacturing services with a new plant which is cGMP compliant.

2009 Initiated operations in the safety assessment and large molecules development services.

2010 Acceptance of the Clinical and Bio- analytical facilities of CIL by the Department of Health & Human Services, FDA.

2011 Endo Pharmaceuticals and Syngene collaborated to develop novel biological therapeutic molecules against cancer.

2012 Abbott and Syngene collaborated to establish Abbott's nutrition research and development centre in India and our second R&D centre .

2012 Certification of our clinical facilities by ANVISA.

2012 Acquired 100% stake in Clinigene International Limited from Biocon.

2013 Crossed an annual turnover of over Rs 5,000 million in Financial Year 2013

2013 Baxter International Inc. collaborated with Syngene to establish the ‘Baxter Global Research Center’, our third dedicated R&D centre

2013 Acceptance of our Control Testing Laboratory by the Department of Health & Human Services, FDA.

2014 Bristol Myers Squibb and Syngene extend collaboration for its dedicated R&D centre till 2020

2014 Acceptance of Syngene API manufacturing facility by the Department of Health & Human Services, FDA .

2014 Established a 75,000 square feet Centre to provide stability and analytical services

2015 Clinigene International Limited was amalgamated with Syngene

Source: RHP, ICICIdirect.com Research Industry information (CRO)

Contract research organisations (CROs) offer outsourced services to support discovery and development for R&D driven organisations across industrial sectors like pharmaceuticals, biotechnology, biopharmaceuticals, neutraceuticals, animal health, agro-chemicals, cosmetics and electronics. CRO services span the range of R&D activities from new molecular entity (NME) discovery, development and manufacturing. Growth in the CRO market has historically been driven by growth in R&D spending and increased outsourcing of R&D activities. The global CRO market for discovery services was estimated at US$14.7 billion in 2014 and is expected to reach US$22.7 billion in 2018, reflecting a CAGR of 11.5% (2014-18), according to the IQ4I Report. The global CRO market for development services was estimated at US$28.8 billion in 2014 and is expected to reach US$44.6 billion in 2018, reflecting a CAGR (2014-18) of 11.6%, according to the Frost & Sullivan Report. Overview of CRO Services CROs offer clients an opportunity to manage costs, have flexible operations and realise efficiencies in R&D and related functions. As an industry, CROs have expanded their service offerings over time to meet growing needs for full-service outsourcing across the full spectrum of R&D and related activities. In practice, however, most CRO service providers specialise to some degree based on the needs of their clients and the market in which they operate.


Exhibit 5: CRO services

Source: RHP; ICICIdirect.com Research Exhibit 6: CRO services

Source: RHP; ICICIdirect.com Research


Investment Rationale

Well poised to cash in on growing global pharma R&D outsourcing trend Global pharmaceutical players are facing structural issues such as profit pressures arising from impending patent cliff, drying product pipeline and rising R&D costs. Surprisingly though the new product approvals from the USFDA is on the rise. Hence, to maintain the cost balance at one end and maintain the new product introduction at the other, these players are inclined to outsource some of the R&D budget to the contract research organisations (CROs) like Syngene. Also, the need for greater flexibility has reduced the willingness of these players to incur large fixed costs associated with large scale R&D programmes. Outsourcing allows clients to convert a portion of their R&D budgets from a fixed to a variable cost, giving them greater flexibility to shift strategic and development priorities in response to market conditions. According to Frost & Sullivan estimates, R&D spend in the global pharma space was ~US$139 billion in 2014 were as the CRO pie was ~US$ 44 billion (32%).

Indian CRO advantages- cost arbitrage, skills availability Historically, India has offered a significant cost advantage and skilled personnel. However, as global pharma outsources more R&D functions, outsourcing to India is increasingly seen as a strategic move to garner quality and value, rather than just a tactical decision to lower costs.

High recall value Due to its integrated service offerings coupled with consistent performance and high data integrity ethos, Syngene has enjoyed high recall value, which is reflected from the fact that eight out of top 10 clients have been engaged with the company for the past five years. The company has also established dedicated centre for its three major clients Bristol-Myers Squibb Co (BMS), Abbott and Baxter. BMS has also recently extended this engagement with Syngene to 2020.

Time tested infrastructure with major approvals The company owns largest CRO facilities in India, which is spread over 900,000 sq ft, located in Bengaluru. The facility has been accredited with major regulatory compliance. It operates laboratory and manufacturing facilities to standards that are consistent with the requirements of its large global clients. In 2014, USFDA cleared the facility without observations. Strong pool of scientists to support long clientele The company has a pool of 2,122 scientists, including 258 PhDs and 1,665 scientists with a master’s degree across multiple disciplines. Also, its leadership position provides a significant competitive advantage in attracting and retaining high-quality scientists required to successfully execute its innovative business model and differentiate its service offerings from competitors.


Financials Revenues increase at CAGR of 28% over FY11-15 The revenues grew at a CAGR of 28.2% over FY11-15 to | 871 crore mainly due to steady orders from its top 10 clients. The company’s top 10 clients account for 70% of total revenues.

Exhibit 7: Revenue trend

322.9418.2

554.2

707.7

871.6

0.0

200.0

400.0

600.0

800.0

1,000.0

FY11 FY12 FY13 FY14 FY15

Revenues

28.2 CAGR


Exhibit 8: Client wise revenue bifurcation

329.2 391.6 485.5609.7

87.5158.4

214.0250.2

0.0

200.0

400.0

600.0

800.0

1,000.0

FY12 FY13 FY14 FY15

Top 10 Clients Others


Robust EBITDA margins trend maintained EBITDA margins have improved 262 bps to 33.6% over FY11-15 mainly due to increase in productivity and incremental orders. Exhibit 9: EBITDA & PAT margins trend

31.033.1

31.2 31.533.6

8.4

17.0 18.4 19.0 20.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0


EBITDA Margins (%) PAT Margins (%)



Net profit increases at 59.3% CAGR over FY11-15 Net profit grew at 59.3% CAGR over FY11-15 to | 175 crore manly due to strong operational performance and lower interest cost. Exhibit 10: Net profit trend

27.2

71.0

102.1

134.8

175.0

0.020.040.060.080.0

100.0120.0140.0160.0180.0200.0


PAT

59.3% CAGR

Source: RHP, ICICIdirect.com Research Healthy return ratios The RoE improved 840 bps to 20.7% over FY11-15 mainly due to a better operational performance. The RoCE also improved 790 bps to 17.5%. Exhibit 11: Du Pont Analysis Du Pont Analysis FY11 FY12 FY13 FY14 FY15

Tax burden (%) 98.9 96.3 96.0 86.1 86.0

Interest burden (%) 56.7 87.8 94.2 99.7 96.3

EBIT margin (%) 15.1 20.1 20.5 22.4 24.6

Asset Turnover (X) 0.8 1.1 1.4 1.6 1.4

Leverage (X) 1.8 1.3 0.8 0.7 0.7

ROE 12.3 23.9 19.7 20.4 20.7 Source: RHP, ICICIdirect.com Research Exhibit 12: Return ratios trend

12.3

23.9

20.4 20.7

7.4

18.016.6 17.5

19.7

19.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0


RoE RoCE



Leverage free balance sheet with sustainable cash flows The net debt/equity (net D/E) has reduced to nil in FY15 from 0.6x in FY11. Also, in the past five years it has generated cumulative free cash flow of ~| 200 crore post incurring capex on capacity expansions, technological upgradations and maintenance. The major capex incurred in past three years was to develop a dedicated facility for its clients Abbott and Baxter. Over the next three years, the company is planning a ~US$200 million capex towards capacity augmentation in its laboratory services, developmental services and cGMP drug substance manufacturing. It also intends to invest in oligonucleotides, viral testing services and ADCs and setting up a new commercial scale manufacturing centre in Mengaluru.

Exhibit 13: Net debt/ equity

Net Debt/ Equity

0.6

0.20.00.0

0.1

-0.2

0.0

0.2

0.4

0.6

0.8


Net Debt/ Equity


Exhibit 14: Free cash flow

50.595.9

42.9

199.7

-185.4-300.0

-200.0

-100.0

0.0

100.0

200.0

300.0


FCF



Key concerns Client Consolidation

In a growing trend of global pharma consolidation, if the priorities of the resultant entity are changed, there can be loss of business in the existing projects. This may severely affect the business prospects.

High dependency on limited customers

The company earns over 70% of its revenue from top 10 clients including ~30% of revenues from BMS. Hence, loss or decrease in business from, one or more of these clients may adversely impact its financials.

Valuations At the IPO price band of | 240-250, the stock is available at 27-29x on FY15 EPS of | 8.8.

Exhibit 15: Comparison with Global Peers in the CRO space

CY14 (US$ million) Market Cap Revenue EBITDA margin PATP/E (Trailling 12 months)

WuXi Pharma 3,049.5 674.3 22.3 112.2 22.8

Quintiles Transnational 9,341.4 5,460.0 13.0 356.4 28.7

ICON PLC 4,241.5 1,503.3 17.5 172.5 24.8

Charles River Labs 3,591.3 1,297.7 21.1 126.7 22.6

PAREXEL International 3,671.5 2,266.3 12.4 129.1 31.2

Covance Inc NA 2,699.6 13.8 185.8 NA

Albany Molecular Research 705.1 276.6 8.7 -3.3 31.3

Syngene 5,000.0 871.6 33.6 175.0 28.6Source: Bloomberg, ICICIdirect.com Research; *Syngene values assumed at upper band of | 250

Object of the issue It is essentially an offer for sale wherein no proceeds from the IPO will be ploughed back in the company. The selling shareholder is Biocon Ltd (11% stake).


Exhibit 16: Profit and loss (| crore) FY11 FY12 FY13 FY14 FY15

Revenue from operations 321.9 416.7 550.0 699.5 859.9

YoY Growth (%) 20.6 29.5 32.0 27.2 22.9

Other income 1.0 1.5 4.2 8.2 11.7

Total revenue 322.9 418.2 554.2 707.7 871.6

Raw material exp 88.0 112.3 145.2 191.4 239.0

% of sales 27.3 26.9 26.2 27.0 27.4

Employee exp 80.0 98.4 123.5 155.6 201.9

% of sales 24.8 23.5 22.3 22.0 23.2

Other expenses 54.9 68.9 112.8 138.1 137.9

% of sales 17.0 16.5 20.4 19.5 15.8

Operating Exp 222.9 279.6 381.5 485.1 578.8

EBITDA 100.0 138.6 172.7 222.6 292.8

Margin % 31.0 33.1 31.2 31.5 33.6

Depreciation and amortization expe 51.5 54.7 59.9 65.6 81.4

Finance costs 21.0 10.2 6.5 0.4 7.9

PBT 27.5 73.7 106.3 156.6 203.5

Total tax expense 0.3 2.7 4.2 21.8 28.5

Tax Rate % 1.1 3.7 4.0 13.9 14.0

PAT 27.2 71.0 102.1 134.8 175.0 Source: RHP, ICICIdirect.com Research

Exhibit 17: Balance sheet (Year-end March) FY11 FY12 FY13 FY14 FY15

Liabilities

Equity Capital 2.9 24.1 26.1 26.1 199.1

Reserve and Surplus 217.8 272.7 492.5 633.2 645.8

Total Shareholders funds 220.7 296.8 518.6 659.3 844.9

Total Debt 145.0 96.8 0.0 154.9 155.0

Net Deferred Tax Liability 10.1 8.2 6.5 5.1 4.9

Other 40.0 57.2 50.1 64.1 77.9

Total Liabilities 415.8 459.0 575.2 883.4 1,082.7

Assets

Net Block 387.6 383.0 381.0 394.1 503.3

Capital WIP 0.9 10.8 8.8 45.3 105.1

Total Fixed Assets 388.5 393.8 389.8 439.4 608.4

Investments 2.6 0.1 69.2 352.1 146.0

Long term loans and advances 39.2 49.7 86.3 103.1 114.2

Inventory 6.3 14.9 17.9 14.9 38.4

Debtors 38.4 43.4 76.6 94.3 179.9

Cash 5.9 37.7 11.8 91.6 115.7

Loans and Advances 6.4 7.4 16.0 26.9 33.8

Other current assets 16.8 34.5 45.6 54.3 72.0

Total Current Assets 73.8 137.9 167.9 282.0 439.8

Creditors 28.0 64.3 82.7 76.6 69.2

Provisions 3.8 6.7 8.8 9.7 9.4

Other Current Liabilities 56.5 56.6 57.5 221.2 260.2

Net Current Assets -14.5 10.3 18.9 -25.5 101.0

Other Non-current Assets 0.0 5.1 11.0 14.3 113.1

Application of Funds 415.8 459.0 575.2 883.4 1,082.7



Exhibit 18: Cash Flow (Year-end March) FY11 FY12 FY13 FY14 FY15

Profit/(Loss) after taxation 27.2 71.0 102.1 134.8 175.0

Add: Depreciation 51.5 54.7 59.9 65.6 81.4

(Inc)/dec in Current Assets -14.9 -64.1 -30.0 -114.1 -157.8

Inc/(dec) in CL and Provisions 4.9 39.3 21.4 158.5 31.3

Others 11.1 21.3 -49.9 54.7 -118.1

CF from operating activities 79.8 122.2 103.5 299.5 11.8

(Inc)/dec in Investments 8.2 2.6 -69.1 -282.9 206.0

(Inc)/dec in Fixed Assets -29.3 -26.3 -60.6 -99.8 -203.9

Dividend Received 0.5 1.2 1.7 4.7 9.9

Others 2.2 -0.1 -22.1 3.8 0

CF from investing activities -18.4 -22.6 -150.1 -374.2 12.0

Inc / (Dec) in Total Debt -41.5 -65.1 -92.6 155.6 -2.7

Dividend paid & dividend tax 0 0 0 0 -133.1

Issuance of Share Capital 0 5 119.7 0 133.4

Interest Paid -20.6 -9.8 -6.4 -0.2 -7.7

CF from financing activities -62.1 -69.9 20.7 155.4 -10.1

Net Cash flow -0.7 29.7 -25.9 80.7 13.7

Opening Cash 6.6 8 37.7 10.9 95.3

Closing Cash 5.9 37.7 11.8 91.6 109.0



Exhibit 19: Key Ratios (Year-end March) FY11 FY12 FY13 FY14 FY15

Per share data (|)

Reported EPS 1.36 3.55 5.105 6.74 8.75

Cash EPS 3.9 6.3 8.1 10.0 12.8

BV per share 11.0 14.8 25.9 33.0 42.2

Cash Per Share 0.3 1.9 0.6 4.6 5.8

Operating Ratios (%)

EBITDA / Net Sales 31.1 33.3 31.4 31.8 34.1

EBIT / Net Sales 15.1 20.1 20.5 22.4 24.6

PAT / Net Sales 8.4 17.0 18.6 19.3 20.4

Inventory days 7.1 13.1 11.9 7.8 16.3

Debtor days 43.5 38.0 50.8 49.2 76.4

Creditor days 31.7 56.3 54.9 40.0 29.4

Return Ratios (%)

RoE 12.3 23.9 19.7 20.4 20.7

RoCE 13.3 21.3 21.8 19.3 21.1

RoIC 13.0 21.3 28.2 42.6 35.0

Valuation Ratios (x)

P/E 9.2 3.5 2.4 1.9 1.4

EV / EBITDA 51.4 36.5 28.5 21.2 16.7

EV / Net Sales 16.0 12.1 8.9 6.7 5.7

Market Cap / Sales 15.5 12.0 9.1 7.1 5.8

Price to Book Value 22.7 16.8 9.6 7.6 5.9

Solvency Ratios

Debt / EBITDA 1.5 0.7 0.0 0.7 0.5

Debt / Equity 0.7 0.3 0.0 0.2 0.2

Net Debt/ Equity 0.6 0.2 0.0 0.1 0.0

Current Ratio 0.8 1.1 1.1 0.9 1.3

Quick Ratio 0.8 1.0 1.0 0.9 1.2


RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;

Pankaj Pandey Head – Research [email protected]

ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai – 400 093

[email protected]


RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;

Pankaj Pandey Head – Research [email protected]

ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai – 400 093

[email protected]

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Documents

July 23, 2015 Rating matrix Syngene Internationalcontent.icicidirect.com/ULFiles/UploadFile_201572385624.pdf · Incorporated in 1993 as a subsidiary of Biocon, Syngene International