Syncom Formulation (India) Ltd. (SYNCOMF) AI Stock Analysis

• Market Cap: ₹15.35B
• Dividend Yield: N/A
• Average Volume (3M): 249.72K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.41
• Revenue Growth: 56.41%
• EPS Growth: 90.24%
• Country: IN
• Employees: 998
• Sector: Services
• Sector Strength: N/A
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.18
• Shares Outstanding: 940,000,000
• 10 Day Avg. Volume: 232,913
• 30 Day Avg. Volume: 249,719
• PEG Ratio: 0.27
• Price to Book (P/B): 4.34
• Price to Sales (P/S): 3.19
• P/FCF Ratio: 110.11
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹18.00 ▲(18.58% Upside)

Syncom Formulation's strong financial performance is the most significant factor, supported by robust revenue growth and profitability. However, technical indicators suggest bearish momentum, and the stock's valuation appears high, impacting the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective product strategies, supporting long-term business sustainability.

Balance Sheet Health

A robust balance sheet with low leverage enhances financial stability, reducing risk and providing flexibility for future investments.

Cash Flow Improvement

Positive cash flow trajectory supports ongoing operations and potential reinvestment, indicating sustainable cash generation capability.

Negative Factors

High Beta

A high beta suggests greater volatility compared to the market, which may pose risks to investors seeking stable returns.

Moderate Cash Conversion

Moderate cash conversion indicates potential challenges in translating profits into cash, which can affect liquidity and investment capacity.

Technical Analysis

Bearish technical trends may reflect underlying market concerns, potentially impacting investor confidence and stock performance.

Syncom Formulation (India) Ltd. Business Overview & Revenue Model

Company Description

Syncom Formulation (India) Ltd. (SYNCOMF) is a prominent player in the pharmaceutical and healthcare industry, primarily focused on the development, manufacturing, and marketing of a wide range of formulations and active pharmaceutical ingredients (APIs). The company operates in diverse sectors, including generic pharmaceuticals, over-the-counter (OTC) products, and nutraceuticals, catering to both domestic and international markets. With a commitment to quality and innovation, SyncomF specializes in producing cost-effective and high-quality formulations that are essential for various therapeutic areas.

How the Company Makes Money

Syncom Formulation (India) Ltd. generates revenue through multiple streams including the sale of pharmaceutical formulations and APIs to wholesalers, distributors, and retail outlets. The company also earns income from contract manufacturing services, wherein it produces products for other pharmaceutical companies under their brand names. Significant partnerships with healthcare providers and distributors enhance its market reach, while compliance with regulatory standards allows access to international markets, contributing to its earnings. Additionally, the company may benefit from strategic collaborations and licensing agreements that provide additional revenue opportunities.

Syncom Formulation (India) Ltd. Financial Statement Overview

Summary

Syncom Formulation exhibits strong financial performance with impressive revenue growth and profitability metrics. The balance sheet is robust with low leverage, and cash flow has shown positive momentum despite past volatility.

Income Statement

Syncom Formulation has demonstrated impressive revenue growth with a 86.14% increase from 2024 to 2025, alongside strong profitability metrics. The gross profit margin is robust at 20.80% for 2025, while the net profit margin has improved to 10.25%, indicating enhanced operational efficiency. EBIT and EBITDA margins of 10.14% and 14.75%, respectively, underscore healthy earnings before interest and taxes. Overall, the company exhibits solid revenue expansion and margin improvement.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 82.77% in 2025, reflecting financial stability and low leverage. The debt-to-equity ratio of 0.01 indicates limited reliance on debt financing, reducing financial risk. Additionally, the return on equity has improved to 14.45%, showcasing efficient use of shareholder funds. The overall balance sheet is robust, with strengths in equity and low debt levels.

Cash Flow

Syncom Formulation's cash flow performance has improved significantly, with a notable recovery in free cash flow to 134.77 million in 2025 from a negative position in 2024. The operating cash flow to net income ratio stands at 0.47, indicating a moderate conversion of income to cash. Despite past fluctuations, the cash flow trajectory is positive, showing potential for sustained cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.96B	4.65B	2.63B	2.24B	2.18B	2.39B
Gross Profit	1.74B	1.58B	559.50M	825.58M	709.74M	722.43M
EBITDA	745.87M	711.74M	430.28M	341.47M	319.59M	450.31M
Net Income	575.59M	494.35M	253.14M	200.71M	197.90M	291.72M
Balance Sheet
Total Assets	0.00	4.13B	4.05B	3.78B	3.08B	2.92B
Cash, Cash Equivalents and Short-Term Investments	899.28M	899.28M	1.32B	708.97M	402.47M	734.51M
Total Debt	0.00	45.84M	724.87M	831.82M	577.91M	620.90M
Total Liabilities	-3.42B	711.23M	1.17B	1.22B	860.17M	1.04B
Stockholders Equity	3.42B	3.42B	2.88B	2.56B	2.22B	1.88B
Cash Flow
Free Cash Flow	0.00	134.77M	-140.95M	-101.05M	50.16M	-47.19M
Operating Cash Flow	0.00	234.36M	-59.58M	105.29M	163.29M	-19.93M
Investing Cash Flow	0.00	-182.04M	830.20M	-449.53M	-270.73M	-754.62M
Financing Cash Flow	0.00	-679.03M	-145.58M	350.01M	82.94M	719.60M

Syncom Formulation (India) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SYNCOMF, the sentiment is Negative. The current price of 15.18 is below the 20-day moving average (MA) of 15.82, below the 50-day MA of 16.26, and below the 200-day MA of 17.54, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 24.75 is Positive, neither overbought nor oversold. The STOCH value of 3.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SYNCOMF.

Syncom Formulation (India) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNIPARTS	73 Outperform	₹21.54B	18.51	―	3.25%	-3.81%	14.23%
SYNCOMF	67 Neutral	₹15.35B	26.67	―	―	56.41%	90.24%
UDS	63 Neutral	₹15.51B	12.71	―	―	8.98%	13.54%
GRPLTD	59 Neutral	₹11.06B	39.39	―	0.85%	8.55%	20.47%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Syncom Formulation (India) Ltd. Corporate Events

Syncom Formulations Acquires Strategic Commercial Property in Mumbai

Syncom Formulations (India) Limited has announced the successful acquisition of a commercial property, specifically the entire 3rd Floor of Trade Star on Andheri-Kurla Road, Mumbai, for a total consideration of ₹51.7 crore. This strategic acquisition, accepted by HDFC Bank Ltd., is expected to enhance the company’s operational capabilities and strengthen its market position.

Syncom Formulations Appoints New Secretarial Auditor

Syncom Formulations (India) Limited has announced a change in its secretarial auditor, appointing M/s D.K. Jain & Co. for a five-year term starting April 1, 2025. This decision was approved during the company’s 37th Annual General Meeting. M/s D.K. Jain & Co., based in Indore, is a well-regarded firm with extensive experience in corporate compliance, advisory, and consulting services, serving a diverse client base across India. This appointment is expected to enhance Syncom’s compliance and corporate governance practices.