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

• Market Cap: ₹12.10B
• Dividend Yield: N/A
• Average Volume (3M): 249.72K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.50
• 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: 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)

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 growth

An 86.14% YoY revenue increase (2024–2025) reflects durable top-line expansion from product demand and market penetration. Sustained revenue growth supports reinvestment in R&D and capacity, improves scale economics, and underpins long-term competitiveness and cash generation.

Very low leverage

An equity ratio of 82.77% and virtually zero debt (D/E 0.01) give Syncom strong financial resilience. Low leverage reduces default and refinancing risk, preserves strategic optionality for capex or M&A, and supports consistent capital allocation through industry cycles.

Free cash flow recovery

Recovery of free cash flow to 134.77 million in 2025 from a prior negative position indicates improving cash conversion and operational stabilization. Durable positive FCF enhances self-funding for working capital, capex and reduces reliance on external financing long term.

Negative Factors

Moderate cash conversion

An operating cash flow to net income ratio of 0.47 signals that less than half of accounting earnings convert to cash. Over time this can imply earnings quality issues or working capital swings, constraining internal funding for growth and increasing sensitivity to financing cycles.

Competitive generics/contract mix

A business model centred on generics and contract manufacturing faces structural pricing pressure and intense competition. Over the medium term this tends to compress margins, necessitate continuous cost discipline, and limit sustainable pricing power versus branded peers.

Elevated market sensitivity (beta)

A beta of ~1.46 indicates above-market volatility and higher sensitivity to macro shocks. Structurally, elevated volatility raises the company’s cost of capital, complicates long-term planning and increases the probability that financing or strategic moves become more expensive during downturns.

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	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: 13.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 12.90, below the 50-day MA of 14.17, and below the 200-day MA of 17.01, indicating a bearish trend. The MACD of -0.56 indicates Negative momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 76.78 is Neutral, 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	₹19.50B	16.76	―	3.06%	-3.81%	14.23%
SYNCOMF	67 Neutral	₹12.10B	19.19	―	―	56.41%	90.24%
UDS	63 Neutral	₹10.21B	8.97	―	―	8.98%	13.54%
GRPLTD	59 Neutral	₹9.24B	33.57	―	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 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.

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.