Syngene Stock Price drops by 8 Percent on Weak Guidance by Management

Syngene Stock Price drops by 8 Percent on Weak Guidance by Management

Syngene stock price dropped after management issued cautious outlook during quarterly results. The company has reduced FY24 guidance due to slowdown in the US biotech segment. In the constant currency terms, the company has reduced its sales growth to lower teens compared to higher teens earlier. The stock was down by nearly 8 percent in today’s trading session. Syngene stock was trading Rs 720 (low of the day till the time of publication of this report) after opening the session at Rs 759. The stock has touched 52-week and low of Rs 860 and 535 respectively.

For September ending quarter, the company reports Rs 910 in revenue, registering a growth of 18.5 percent. The margin was under pressure during the quarter. Syngene reported net profit of Rs 117 crore, up by 14 percent compared to same quarter last year.

Syngene has been strong performer this year and the stock has offered nearly 25 percent returns to investors.

Jonathan Hunt, Managing Director and Chief Executive Officer, Syngene International Limited, said, “Long-term sector fundamentals remain strong, and we expect continued growth, but at a lower level in the second half of the year. This short-term slowing in the US biotech segment is reflected in our latest outlook. Overall, we reported a strong first half of the year, and we are pleased with the good progress made on our strategic priorities in both our research services and our development and manufacturing divisions.”

The stock closed flat yesterday but today we have witnessed the biggest drop since 2021. Long term investors can keep this stock in their portfolio as it has strong position in the market. Short term traders should stay away from the counter till the time there is clarity about the new levels for the counter.