Synoptics Techno (SYNOPTICS)

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

Key Financials

Strengths

• Trailing P/E of 12.36 and market cap of only ₹49 Cr make the stock reasonably priced if earnings are sustained.
• Latest quarterly sales of ₹30 Cr and net profit of ₹3 Cr imply roughly a 10% net margin.
• Sales growth of 25.59% shows meaningful demand momentum.
• Promoter holding of 73.11% aligns owner and management interests.

Concerns

• Profit growth of -1.73% despite 25.59% sales growth indicates margin dilution or rising costs.
• Piotroski F-Score of 4/9 suggests weak financial health and poor earnings quality.
• ROCE of 8.75% is mediocre and does not signal a durable competitive advantage.
• No dividend is paid, and the stock trades about 47% below its 52-week high of ₹112.35.

AI Analysis

At ₹59.95 with a ₹49 Cr market cap, this IT-enabled services business is not the kind of established compounder I would normally favour. The trailing P/E of 12.36 looks inexpensive, and the 25.59% sales growth catches my eye. But one number never tells the story. Profit growth is -1.73%, and ROCE is only 8.75%—hardly evidence of a durable moat or strong capital allocation. The Piotroski F-score of 4/9 is another yellow flag; the company is growing revenue but not converting it into better earnings quality. A promoter holding of 73.11% is positive, aligning owners and management, but it also means limited free float and heavy reliance on the controlling family. The latest quarter shows ₹30 Cr sales and ₹3 Cr net profit. If I annualized those numbers, the valuation would look absurdly cheap against the ₹49 Cr market cap. But I do not annualize a single quarter, especially when profit growth is negative and no dividend is paid. I also note the stock has fallen from ₹112.35 to ₹59.95; a fallen price is not by itself a margin of safety. This looks more like a possible turnaround than a proven fast grower. I need to see whether this 25.59% sales growth can translate into stable margins, whether ROCE can move toward 15% or better, and whether the Piotroski score improves. Until then, I will hold back. In Buffett's words, it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Today, I don't yet have the evidence to call Synoptics a wonderful company.

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