Syngene may gain on R&D outsourcing globally; see Symphony at Rs 2780: Pankaj Pandey

In a chat with ET Now, Pankaj Pandey, HoR, ICICIdirect.com, shares the rationale behind his preference for Symphony and newly-listed Syngene.

ET Now: I just want your views on Syngene and Symphony. You seem to be bullish on both the stocks. Please walk us through the rationale behind your preference for these stocks and why they are still a conviction buy for you.
Pankaj Pandey: If you look at Symphony we are expecting good amount of growth, given both air coolers and AC are underpenetrated segments. This company may continue to do well because there will be a shift happening from the unorganised segment which, at present, enjoys around 80 per cent of the market. In addition, this company has been doing well in terms of running a very efficient business model. So from that perspective, given the recent slide, we have a target price of Rs 2,780 on the stock.

As far as Syngene is concerned, we like the business model of the company, especially because the global pharma MNCs are quite under pressure from bottom line's perspective. They is drying up of product pipeline. From that perspective, this company stands out as a key beneficiary of global R&D outsourcing, which is likely to pick up going forward. We do not have too many companies in this space and, thus, Syngene looks quite interesting to us.