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

• Market Cap: ₹11.23B
• Dividend Yield: N/A
• Average Volume (3M): 249.72K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.35
• 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: 64 Neutral
• Price Target: ₹12.50 ▼(-10.59% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is primarily supported by strong financial performance (rapid revenue growth, improving profitability, and very low leverage), but it is materially held back by weak technicals (price below key moving averages and negative MACD). Valuation is reasonable on P/E, with no dividend yield data to add support.

Positive Factors

Revenue Growth

An 86% year-on-year revenue jump demonstrates strong demand traction and successful commercial execution. Durable top-line expansion supports better capacity utilization, scale economies and reinvestment in products and distribution, strengthening fundamentals over the next 2–6 months.

Margin Improvement & Profitability

Improved gross and net margins alongside healthy EBITDA indicate persistent operational efficiency gains. Sustainable margins provide a buffer against input cost volatility, enable reinvestment in quality/compliance and improve long-term free cash flow potential for the business.

Low Leverage and Strong Equity Base

Extremely low leverage and a high equity ratio reduce financial risk and preserve strategic optionality. This balance-sheet strength supports capital spending, potential market expansion or regulatory investments without heavy refinancing risk over the medium term.

Negative Factors

Moderate Cash Conversion

Operating cash converts to only ~47% of reported income and free cash flow swung from negative to positive recently, signaling cash volatility. This limits reliable internal funding for capex, working capital needs or distributions and heightens reliance on cash management execution.

Exposure to API Costs & Working Capital

Margins and cash flow are structurally sensitive to API price swings and inventory/receivable cycles. Such exposure can compress profitability and cash generation when commodity or supply-chain pressures persist, creating a recurring operational risk to earnings durability.

Limited Product/Partner Disclosure

Lack of granularity on product mix, customer concentration and partnerships reduces visibility into revenue sustainability and regulatory or market concentration risks. This information gap makes it harder to assess long-term growth quality and downside exposure.

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 Formulations (India) Ltd. makes money primarily by selling finished pharmaceutical formulations. Revenue is generated through (1) sales of its branded and/or generic formulation products to distributors, wholesalers, hospitals, pharmacies, and other healthcare-channel customers in India, where pricing and volumes are driven by product mix, competitive intensity, and regulatory/compliance requirements; and (2) export sales of pharmaceutical formulations to overseas customers, where earnings depend on country-specific registrations, tender/contract wins, and distributor relationships. The company’s profitability is influenced by manufacturing utilization, cost of active pharmaceutical ingredients (APIs) and packaging materials, quality-compliance performance, and working-capital management (receivables and inventory). Specific disclosed breakdowns by product line, customer type, contract manufacturing arrangements, or named strategic partnerships are null.

Syncom Formulation (India) Ltd. Financial Statement Overview

Summary

Strong fundamentals overall: income statement strength (85) driven by sharp revenue growth and improving margins, a very solid low-leverage balance sheet (78), and improving but still only moderate-quality cash conversion (cash flow score 70; operating cash flow to net income 0.47) despite the free cash flow rebound.

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	5.15B	4.65B	2.63B	2.24B	2.18B	2.39B
Gross Profit	1.70B	1.58B	559.50M	825.58M	709.74M	722.43M
EBITDA	819.28M	711.74M	430.28M	341.47M	319.59M	450.31M
Net Income	630.52M	494.35M	253.14M	200.71M	197.90M	291.72M
Balance Sheet
Total Assets	4.56B	4.13B	4.05B	3.78B	3.08B	2.92B
Cash, Cash Equivalents and Short-Term Investments	1.45B	899.28M	1.32B	708.97M	402.47M	734.51M
Total Debt	6.97M	45.84M	724.87M	831.82M	577.91M	620.90M
Total Liabilities	775.88M	711.23M	1.17B	1.22B	860.17M	1.04B
Stockholders Equity	3.78B	3.42B	2.88B	2.56B	2.22B	1.88B
Cash Flow
Free Cash Flow	461.83M	134.77M	-140.95M	-101.05M	50.16M	-47.19M
Operating Cash Flow	560.11M	234.36M	-59.58M	105.29M	163.29M	-19.93M
Investing Cash Flow	-524.72M	-182.04M	830.20M	-449.53M	-270.73M	-754.62M
Financing Cash Flow	-39.76M	-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: 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 12.46, above the 50-day MA of 12.93, and below the 200-day MA of 16.26, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 39.14 is Neutral, neither overbought nor oversold. The STOCH value of 24.51 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	70 Outperform	₹20.76B	16.41	―	3.06%	-3.81%	14.23%
GRPLTD	65 Neutral	₹9.14B	280.41	―	0.85%	8.55%	20.47%
SYNCOMF	64 Neutral	₹11.23B	17.72	―	―	56.41%	90.24%
UDS	63 Neutral	₹9.54B	35.45	―	―	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.