Syncom Formul. (SYNCOMF)
TurnaroundFairStock Score: 49/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹14.92 |
| Market Cap | ₹1,402.48 Cr |
| P/E Ratio | 18.42 |
| ROCE | 18.59% |
| ROE | 20.19% |
| Dividend Yield | 0.66% |
| Profit Growth | 68.8% |
| Debt/Equity | 0 |
| Sales Growth | -9% |
| Promoter Holding | 50.57% |
| 52-Week Range | ₹10.21 — ₹22.52 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹4.45 |
Strengths
- Zero debt (D/E 0.00) provides strong financial health and flexibility.
- High ROE of 22.12% and ROCE of 18.59% show efficient capital use.
- Latest quarter net profit of ₹19 crore on sales of ₹115 crore indicates a healthy margin.
- Profit growth of 47.46% and a PEG of 0.37 look attractive if earnings growth is sustainable.
- Promoter holding of 50.57% aligns management with minority shareholders.
Concerns
- Sales growth is negative at -9.79%; a shrinking topline makes 47% profit growth less reliable.
- No dividend yield means total dependence on capital appreciation and reinvestment.
- P/B of 4.14 against book value of ₹3.34 is rich; any ROE decline could hurt valuation.
- FairStock Score of 49/100 and Piotroski F-Score of 6/9 indicate mixed fundamentals.
AI Analysis
Let me start with what I like: Syncom Formul. has no debt, an ROE of 22.12% and ROCE of 18.59%. A zero-debt balance sheet in pharma is admirable. But Graham taught me to look past the surface. Sales have fallen 9.79%, yet profit jumped 47.46%. That divergence bothers me. A business whose customers are shrinking cannot be called a predictable compounding machine just because one year's margins improved. The latest quarter shows net profit of ₹19 crore on sales of ₹115 crore—roughly a 16.5% margin—but I need to see if that is from better operations or one-off gains. The moat is not obvious to me. In Indian pharma, without pricing power or a rare product, high returns often get competed away. With promoter holding of 50.57%, interests are aligned, but I still need a margin of safety. At ₹13.84, the stock trades at 17.45 times earnings and 4.14 times book value, while the book value is only ₹3.34. The PEG ratio of 0.37 flatters the stock if you take 47% growth literally; I don't. No dividend means I rely entirely on capital appreciation and reinvestment. FairStock Score of 49/100 and a Piotroski score of 6/9 confirm my caution. If the topline stabilizes and earnings growth continues without exceptionals, this could become a very good business. For now, I would call it a possible turnaround and wait for better evidence.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer