Commercial Syn Bags Limited (COMSYN) AI Stock Analysis

• Market Cap: ₹6.14B
• Dividend Yield: 0.27%
• Average Volume (3M): 1.66K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.26
• Revenue Growth: 22.68%
• EPS Growth: 200.90%
• Country: IN
• Employees: 2,437
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Packaging & Containers
• EPS (TTM): 1.50
• Shares Outstanding: 39,952,200
• 10 Day Avg. Volume: 1,482
• 30 Day Avg. Volume: 1,664
• PEG Ratio: 0.15
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.88
• P/FCF Ratio: -36.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹167.00 ▲(7.71% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is primarily supported by decent revenue growth and healthy operating margins, but is held back by weak cash flow quality (negative free cash flow and low cash conversion). Technicals are mixed with near-term weakness (low RSI and below key short-term averages), while valuation is middling due to a higher P/E and low dividend yield.

Positive Factors

High gross and operating margins

Elevated gross margin (47.02%) alongside healthy EBIT and EBITDA margins indicates durable pricing power and operational efficiency. These margins provide a structural cushion against input-cost volatility and support reinvestment into product development and sustainable packaging over the medium term.

Diverse revenue streams and long-term contracts

A broad end-market footprint and mix of standard and custom products, plus emphasis on long-term contracts, reduce customer concentration and cyclicality. This business model increases order visibility, raises switching costs and supports steadier revenue over multiple quarters.

Manageable leverage and strong equity base

Moderate leverage and an equity ratio near 49% provide balance-sheet stability and financing flexibility. This capital structure makes it easier to fund working capital and necessary capex without excessive refinancing risk, supporting sustainable operations and strategic investments.

Negative Factors

Negative free cash flow and poor cash conversion

Negative free cash flow and very weak conversion of earnings into cash indicate structural cash-generation issues. Over the medium term this constrains the firm's ability to fund capex, pay dividends or reduce debt, and may force external financing or deferment of strategic projects.

Low net margin and weak ROE

A modest net margin (~4.9%) combined with low return on equity signals limited efficiency in converting sales into shareholder returns. Persistently low margins and ROE reduce internal funding for growth and can pressure long-term capital allocation and investor returns.

Weak cash-flow quality limits flexibility

Analysts flag cash-flow quality as a core weakness, which undermines financial flexibility. Continued weak cash generation raises refinancing and investment risks, potentially slowing product development and sustainability initiatives that require steady funding across quarters.

Commercial Syn Bags Limited Business Overview & Revenue Model

Company Description

Commercial Syn Bags Limited engages in manufacturing, producing, processing, importing, exporting, buying, and selling of packaging solution for businesses in India. The company operates through two segments: Manufacturing and Trading. It offers flexible intermediate bulk containers, high density polyethylene and polypropylene woven sacks, fabrics, container bags, pond liners, mulch films, and tarpaulins under the TIGER TARPAULIN brand name. The company also provides vermi beds and flexible pipes under the COMSYN SWAJAL brand name. In addition, it offers BOPP, bulk and box bags, poly tarpaulin, woven bags, geotextiles, ground covers, nets, flexible packaging, and other technical textiles products under the COMSYN brand name. Further, the company engages in the trading of granules, master batches, and PVC resins. It serves construction, agriculture, asbestos waste removal, bulk packaging, household waste removal, human safety, gardens, green houses, shelter, grain, pulses, animal food, seeds, fertilizers, chemicals, and food products. The company also exports its products to the European Union, the United Kingdom, the United States, and Latin America. The company was incorporated in 1984 and is based in Indore, India.

How the Company Makes Money

COMSYN generates revenue through multiple key streams, primarily by selling its synthetic packaging products to various industries, including agriculture, construction, and retail. The company offers both standard and custom solutions, allowing it to cater to a wide range of customer needs, which helps to diversify its revenue base. Additionally, COMSYN may enter into strategic partnerships with distributors and retailers to expand its market reach and enhance sales. The company also focuses on securing long-term contracts with large clients, which provides a steady income flow. Factors contributing to its earnings include the growing demand for sustainable packaging solutions, the ability to offer competitive pricing through efficient manufacturing processes, and a robust supply chain that minimizes operational costs.

Commercial Syn Bags Limited Financial Statement Overview

Summary

Solid revenue growth (8.81%) and strong gross margin (47.02%) support profitability, but cash generation is a key weakness with negative free cash flow and poor cash conversion (free cash flow to net income -8.24; operating cash flow to net income 0.84%). Balance sheet leverage is moderate (debt-to-equity 0.76) with a stable equity base (equity ratio 48.78%), though ROE is described as low.

Income Statement

Commercial Syn Bags Limited has shown a strong revenue growth rate of 8.81% in the latest year, indicating a positive trajectory. The gross profit margin of 47.02% and net profit margin of 4.92% reflect solid profitability, although there is room for improvement in net margins. The EBIT and EBITDA margins are healthy at 8.85% and 11.38%, respectively, suggesting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio of 0.76 indicates a moderate level of leverage, which is manageable but should be monitored. The equity ratio of 48.78% demonstrates a strong equity base relative to total assets, providing stability. However, the return on equity is relatively low, suggesting potential inefficiencies in generating returns from equity.

Cash Flow

The cash flow statement reveals challenges, with negative free cash flow and a concerning free cash flow to net income ratio of -8.24. The operating cash flow to net income ratio is low at 0.84%, indicating potential issues in converting income into cash. The negative free cash flow growth rate highlights the need for improved cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.73B	3.48B	2.88B	2.90B	3.23B	2.12B
Gross Profit	1.53B	1.64B	1.28B	1.26B	1.10B	1.03B
EBITDA	482.94M	395.91M	295.63M	244.63M	365.07M	260.01M
Net Income	255.66M	171.21M	78.58M	80.87M	183.08M	119.83M
Balance Sheet
Total Assets	3.16B	3.08B	2.73B	2.26B	2.22B	1.97B
Cash, Cash Equivalents and Short-Term Investments	53.99M	67.80M	4.64M	620.00K	6.73M	23.79M
Total Debt	1.09B	1.15B	1.09B	755.34M	839.05M	860.78M
Total Liabilities	1.53B	1.58B	1.44B	1.06B	1.16B	1.18B
Stockholders Equity	1.62B	1.50B	1.29B	1.21B	1.06B	786.98M
Cash Flow
Free Cash Flow	164.34M	-83.83M	-63.79M	-52.19M	-121.24M	-275.44M
Operating Cash Flow	243.78M	10.17M	60.95M	376.05M	63.09M	-88.20M
Investing Cash Flow	-135.42M	-2.10M	-288.09M	-298.77M	-74.77M	-172.15M
Financing Cash Flow	-118.20M	3.78M	231.15M	-83.38M	-5.38M	280.57M

Commercial Syn Bags Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 155.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:COMSYN, the sentiment is Neutral. The current price of 155.05 is below the 20-day moving average (MA) of 159.89, below the 50-day MA of 162.52, and above the 200-day MA of 147.15, indicating a neutral trend. The MACD of -4.07 indicates Positive momentum. The RSI at 37.83 is Neutral, neither overbought nor oversold. The STOCH value of 14.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:COMSYN.

Commercial Syn Bags Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPLPLASTEH	71 Outperform	₹4.74B	15.16	―	1.49%	14.78%	19.77%
RPPL	63 Neutral	₹1.13B	16.55	―	―	10.14%	73.18%
COMSYN	62 Neutral	₹6.14B	24.04	―	0.27%	22.68%	200.90%
KANPRPLA	62 Neutral	₹4.31B	9.74	―	0.52%	23.02%	―
EMMBI	60 Neutral	₹1.48B	41.66	―	0.29%	11.97%	-29.32%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%