Axis Capital positive on Syngene International, upgrades it to 'add'

Axis Capital has upgraded Syngene International to ‘add’ with a target price of Rs 670. According to the financial service providers, the company is well placed to capture the industry tailwinds and it is well positioned to monetize and significant contract research organisation (CRO) as well as contract development and manufacturing (CDMO) opportunities.

There is readiness via ongoing capex, there is expansion and extension of dedicated client contracts as well as a scale-up of biologics manufacturing.

Syngene will be commercializing the Mangaluru plant and there will be a supply to Zoetis, which is the animal health company which will take place Q3FY23 or FY24 onwards and hence that would be a kicker for the company.