Syngene Consolidates Ahead Of Q1 Earnings: SEBI RA Rohit Mehta Sees Potential Breakout Above ₹700

While past earnings have been positive, the stock trades at a high valuation and offers a low dividend payout

Ahead of reporting its quarterly results on Wednesday, Syngene International, a pharmaceutical sector services provider, appears to be locked in a range-bound trade.

The stock is currently positioned just above a key support zone between ₹645 and ₹669, as observed by SEBI-registered analyst Rohit Mehta. A recent bounce from this level, accompanied by rising volume, suggests the emergence of short-term bullish momentum.

While the broader trend remains corrective since its December 2024 peak, the current consolidation near support could signal the early stages of a base formation. A sustained move above ₹700 would confirm strength, while ₹960 remains a key resistance on the upside, Mehta said.

Currently trading at ₹683, Syngene International shares are down 29% from its all-time high of ₹960.20.

From an operating standpoint, the company reported healthy results in the March 2025 quarter. Revenue rose 11.01%, while operating profit grew 8.52%, although EPS slipped 3%. Despite solid operating metrics, valuation remains on the higher side at 5.78 times book value, with a modest 12.3% ROE and a low dividend payout of 10.3%.

Promoter holding dipped slightly to 52.68% in June 2025, while foreign institutional investors (FIIs) reduced their stake from 19.47% to 16.51%. Domestic institutional investors (DIIs), however, increased their holding to 24.05%.

Syngene has witnessed a heavy selling pressure this year, with the stock losing over a fifth of its value YTD.

However, it currently appears to be stabilizing near a strong support zone with investors cautiously awaiting the results, hopeful of a trend reversal.

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