Syncom Formul. (SYNCOMF)

FairStock Score: 49/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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