Synergy Green (SGIL)

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding of 69.45% aligns management interests with minority shareholders.
• Historical ROCE of 20.85% suggests the existing business has generated decent returns on capital employed.
• ROE of 15.02% shows the equity base, though leveraged, has been earning a positive return.
• Latest quarter sales of ₹92 Cr indicate the company still has meaningful operating scale in castings and forgings.

Concerns

• P/E of 103.57 and P/B of 15.73 are extremely expensive against deteriorating earnings and a book value of only ₹34.16.
• Profit growth of -129.24% and a latest-quarter net loss of ₹1 Cr show earnings are bleeding.
• Debt/equity of 1.79 is dangerously high for a cyclical business, especially with sales down 5.46%.
• Piotroski F-Score of 3/9 and a FairStock Score of 0/100 indicate poor financial health and high risk.

AI Analysis

Let me start with the numbers, because in investing, the numbers usually tell you enough. Synergy Green trades at ₹537.25 with a market cap of ₹812 Cr. That looks reasonable until you see the earnings behind it: a P/E of 103.57, and profit growth of -129.24%. In other words, earnings have collapsed. The latest quarter says it all: sales of ₹92 Cr but a net loss of ₹1 Cr. When a company loses money at the bottom of the cycle, a high P/E is not proof of growth; it's proof of danger. Graham taught me to buy with a margin of safety. Here, the margin is missing. Book value is ₹34.16, yet the market pays ₹537.25—15.73 times book. For that premium you'd need a bulletproof moat and consistent returns. ROE is 15.02% and ROCE is 20.85%, so past capital allocation was not bad. But the capital structure is troubling: debt/equity at 1.79. In a cyclical business like castings, such leverage magnifies losses when demand dips. Sales are already down 5.46%, and the Piotroski score of 3/9 tells me financial health is deteriorating. The positives are visible, but not enough. Promoter holding of 69.45% means owners are aligned with shareholders; I like that. Dividend yield of 0.19% is negligible, so this isn't an income stock. The 52-week range of ₹420 to ₹654 reminds me that this is a volatile, cyclical share, not a stable compounder. I would need to see a return to profit, lower debt, and evidence that the cycle is turning before I'd even put this on my watchlist. At 103 times earnings with falling sales, I'm not a buyer. The price may be green, but the financials are red.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer