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

• Market Cap: ₹12.80B
• Dividend Yield: N/A
• Average Volume (3M): 249.72K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.51
• 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): 0.20
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹14.00 ▲(0.14% Upside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

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

Strong revenue and margin expansion

An 86% revenue jump with concurrent gross and net margin improvement reflects scalable product demand and better cost absorption. Sustained revenue momentum and improved EBIT/EBITDA margins indicate durable operating leverage and stronger cash-earnings potential over the next several quarters.

Very low leverage and strong equity base

Extremely low leverage and a high equity ratio materially reduce financial risk and provide capacity to fund growth, registrations, or capex without stressing the balance sheet. A rising ROE shows efficient capital use and supports resilient financing flexibility across market cycles.

Recovery in free cash flow

A return to positive free cash flow after a negative year signals improving cash generation and working-capital management. This recovery enhances the company's ability to reinvest, reduce any contingent funding needs, and sustain operations without relying on external debt.

Negative Factors

Exposure to API and packaging cost swings

Margins and cash generation remain sensitive to raw-material and packaging input costs and factory utilization. Sustained or unexpected rises in API or packaging prices, or utilization dips, can meaningfully compress margins and make earnings less predictable over the medium term.

Export growth dependent on registrations and tenders

Scaling exports is structurally constrained by regulatory registrations, tender processes and distributor contracts. These are time- and capital-intensive barriers; delays or failures in approvals or tender losses can slow geographic diversification and revenue visibility for months to years.

Moderate cash conversion and past FCF volatility

An OCF-to-net-income ratio below 1 and prior negative free cash flow point to only moderate earnings-to-cash conversion and some volatility. This can constrain discretionary investments and makes the business more sensitive to working-capital swings despite strong accounting profitability.

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

Company Description

Syncom Formulations (India) Limited manufactures, markets, and sells pharmaceutical formulation products in India. It offers various products, including generics, alpha adrenoceptor agonists, analgesics, antipyretics, anti-inflammatory, anti-ulcer agents, antibiotics, antidepressants, antifungals, antihistamines, antimalarial, antiplatelet agents, antiprotozoal, antivirals, bronchodilators, calcium antagonists, cardiac medicines, central nervous stimulants, cephelo sporins, cortico steroids, estrogen, cough suppressants, erectile dysfunction, and electrolite. The company also provides histamines, homeostatic, hypoglycemic, hypolipidaemics, local anesthetics, multivitamins and nutritional supplements, sedative anticonvulsants, stimulants, and sympathomimetic products, as well as products used in the treatment of gout. In addition, it engages in the trading of commodities and renting of properties. Further, the company exports its products. It offers its pharmaceutical formulations products in various dosage forms, such as tablets, capsules, liquids orals, liquid vials, ampoule injections and dry vial injections, dry syrups, ointments, inhalers, and herbals. Syncom Formulations (India) Limited was founded in 1985 and is based in Indore, India.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 13.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 13.98 is above the 20-day moving average (MA) of 13.39, above the 50-day MA of 13.65, and below the 200-day MA of 16.77, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 10.81 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	70 Outperform	₹22.36B	17.14	―	3.06%	-3.81%	14.23%
SYNCOMF	67 Neutral	₹12.80B	17.87	―	―	56.41%	90.24%
GRPLTD	65 Neutral	₹9.65B	40.22	―	0.85%	8.55%	20.47%
UDS	63 Neutral	₹10.81B	11.63	―	―	8.98%	13.54%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Syncom Formulation (India) Ltd. Corporate Events

Syncom Formulations Faces Rs 1.42 Crore GST Demand and Penalty After Appeal Rejection

Syncom Formulations (India) Ltd. has disclosed that the GST Department’s Office of the Superintendent, Range-V, Division X, Mumbai-East, has rejected its earlier appeal and issued a revised demand and penalty notice under Sections 74(5) and 122 of the CGST Act, 2017, relating to alleged ineligible input tax credit on certain input services and blocked credits. The order, received on 2 January 2026, calls for payment of Rs 70.89 lakh towards ineligible input tax credit and an equivalent amount as penalty, aggregating to about Rs 1.42 crore, which the company says must be paid by 31 January 2026 even as it plans to pursue a further appeal before the relevant authority, indicating a potential near-term financial outflow but also signalling its commitment to legal recourse and regulatory compliance.