Syngene International Ltd. shares declined more than 8% on Thursday after the company reported a consolidated net loss for the June quarter as revenue and operating profit fell from a year earlier, prompting brokerages to review the results.
The stock dropped as much as 8.06% to Rs 380.85 in early trade.
The quarterly performance fell short of expectations on both revenue and profitability, although management maintained its FY27 EBITDA margin guidance, according to Macquarie.
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For the quarter ended June, Syngene reported a consolidated net loss of Rs 9 crore, compared with a net profit of Rs 86.8 crore in the same period last year.
Revenue declined 15.9% year-on-year to Rs 736 crore from Rs 875 crore. EBITDA fell 33.4% to Rs 141 crore from Rs 211 crore, while EBITDA margin narrowed to 19.1% from 24.2% a year earlier. The company also recorded a one-time cost of Rs 14 crore during the quarter.
Reviewing the results, Macquarie retained its 'Outperform' rating on the stock with a target price of Rs 735.
The brokerage said the June-quarter performance was "an all-round miss", but noted that management had "retained FY27 EBITDA margin guidance in the mid-20% range."
According to data compiled by Bloomberg, five of the nine analysts covering the stock have a 'Buy' recommendation. Two analysts each have 'Hold' and 'Sell' ratings.
The Bloomberg consensus target price stands at Rs 547.22, implying a potential upside of about 43% from the last regular traded price.
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