Title: Significance/ Relationship of Syngene International Limited with Nifty
Author: Shifa Ansari
Introduction –
Syngene International is an innovation-led contract research, development, and manufacturing organization offering end-to-end solutions to fulfil the R&D and manufacturing requirements of clients.
Syngene is an integrated research, development, and manufacturing organization providing scientific services – from early discovery to commercial supply.
Objectives: Calculation of Beta of Syngene International Ltd
Literature review:
Indian CMO peers largely operate in the small molecule segment and Syngene’s capabilities in biologics remains a key differentiator. To meet the growing demand from clients, Syngene continues to make investments focused on increasing capacity and building capabilities. Company achieved milestones by commissioning the first phase of the new R&D centre in Hyderabad, commencement of the API manufacturing facility in Mangalore (to be commissioned in FY22) and expansion of the R&D facility in Bengaluru during FY20.
Syngene International Limited announced the signing of a 10-year agreement with animal health company, Zoetis, to manufacture the drug substance for Librela® (bedinvetmab), a first-in-class monoclonal antibody used for treating osteoarthritis in dogs. This 10-year agreement will position Syngene as a leading Contract Development and Manufacturing Organization (CDMO) in animal health globally.
Data Collection: Data was collected from Yahoo finance sites. The data was manipulated by the final closing, where the weekly return of Nifty is Y and the weekly return for the company is X.
Data Analysis:
Y^=0.02+0.64
Syngene International Ltd return= 0.029
Nifty return =0.64, (t-stat = 2.66)
N = 50, R2 = 12.88%
F = 7.09,
Significance = 0.0104,
Conclusion: The above equation shows the relationship between Y and X. Positive sign means there is a direct relationship, which means X and Y are both rising simultaneously. Figure in the bracket is T-stats for b it is more than the table value. R2 is 12.88% of Y is explained by X. F is 7.09. The beta is 0.64 which means it is not more than one and is good for long term investment.
Reference:
Rughani, Kushal (10 February 2021). “Initiating Coverage: Syngene International Ltd” (PDF). HDFC Securities. p. 2. Retrieved 22 April 2022.
Rautela, Isha (14 July 2022). “Syngene inks 10-year biologics manufacturing pact with Zoetis”. www.thehindubusinessline.com. Retrieved 17 July 2022.