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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 524470 | NSE: SYNCOMF

Fundamental Analysis of Syncom Formulations (India) Ltd

About the Company - Syncom Formulations (India) Ltd

Syncom Formulation (India) Ltd. is a Public Limited Listed company incorporated on 21/06/1988 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24239MH1988PLC047759 and registration number is 047759. Currently Company is involved in the business activities of Manufacture of allopathic pharmaceutical preparations. Company’s Total Operating Revenue is Rs. 219.66 Cr. and Equity Capital is Rs. 86.25 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Pharmaceuticals7, Niraj Industrial Estate, Off Mahakali Caves Road, Mumbai Maharashtra 400093finance@sfil.in
http://www.sfil.in
Management
NamePosition Held
Mr. Kedarmal Shankarlal BankdaExe.Chairman & W T D
Mr. Vijay Shankarlal BankdaManaging Director
Mrs. Rinki Ankit BankdaWhole Time Director
Mr. Krishna Das NeemaIndependent Director
Mr. Praveen JindalIndependent Director
Mr. Vinod Kumar KabraIndependent Director
Mrs. Ruchi JindalIndependent Woman Director
Mr. Ritesh Kumar LunkadAddnl.Independent Director
Mr. Ankit JainAddnl.Independent Director

Syncom Formulation (India) Ltd. Share Price Update

Share PriceValue
Today₹13.90
Previous Day₹14.31

Basic Stock Data of Syncom Formulations (India) Ltd

Market Cap 1,338 Cr.
Current Price 14.2
High / Low18.6/4.55
Stock P/E52.7
Book Value 2.87
Dividend Yield0.00 %
ROCE9.70 %
ROE8.42 %
Face Value 1.00

Data Source: screener.in

Competitors of Syncom Formulations (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nectar Lifescience Ltd 858 Cr. 38.245.7/14.4106 47.60.00 %0.18 %6.01 % 1.00
Wanbury Ltd 511 Cr. 156179/33.021.4 6.800.00 %16.9 %% 10.0
Ambalal Sarabhai Enterprises Ltd 424 Cr. 55.370.0/20.0147 16.60.00 %11.1 %8.99 % 10.0
Morepen Laboratories Ltd 2,602 Cr. 50.956.4/24.034.2 15.40.00 %8.57 %5.93 % 2.00
Aarey Drugs & Pharmaceuticals Ltd 120 Cr. 47.368.0/21.928.5 46.80.00 %6.38 %3.33 % 10.0
Industry Average903.00 Cr69.5467.4226.640.00%8.63%4.85%6.60

Syncom Formulations (India) Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales65.8584.1765.5451.2752.9457.2358.2351.4054.4957.3861.3759.3662.39
Expenses53.5871.1457.1244.2747.2752.3456.1947.9250.2051.4755.4353.2156.29
Operating Profit12.2713.038.427.005.674.892.043.484.295.915.946.156.10
OPM %18.63%15.48%12.85%13.65%10.71%8.54%3.50%6.77%7.87%10.30%9.68%10.36%9.78%
Other Income1.311.203.761.372.722.245.692.982.871.986.791.884.00
Interest0.050.030.160.190.120.151.040.500.620.721.291.121.08
Depreciation1.000.991.050.970.970.991.011.001.181.201.171.100.88
Profit before tax12.5313.2110.977.217.305.995.684.965.365.9710.275.818.14
Tax %26.34%24.22%36.65%24.97%23.01%32.89%16.20%22.18%33.02%30.49%17.62%26.85%23.71%
Net Profit9.2410.026.955.405.624.014.763.873.604.158.474.256.21
EPS in Rs0.120.130.090.070.070.050.060.040.040.040.090.050.07

Syncom Formulations (India) Ltd Quarterly Chart

Syncom Formulations (India) Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales118115151173184185159187206245216222246
Expenses110104135155167168147175189207196202221
Operating Profit8111618171612121738202025
OPM %6%9%11%11%9%9%7%6%8%16%9%9%10%
Other Income1111334557121517
Interest0100000010235
Depreciation3333334444455
Profit before tax581416161612131741262733
Tax %36%33%33%38%36%33%28%12%18%28%24%24%
Net Profit4691010119111429202025
EPS in Rs0.040.070.120.130.130.140.110.140.180.370.230.210.28
Dividend Payout %38%24%17%16%15%15%0%0%0%0%131%0%

Syncom Formulations (India) Ltd Profit & Loss Yearly Chart

Syncom Formulations (India) Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:7%
3 Years:3%
TTM:11%
Compounded Profit Growth
10 Years:13%
5 Years:18%
3 Years:12%
TTM:55%
Stock Price CAGR
10 Years:10%
5 Years:73%
3 Years:64%
1 Year:135%
Return on Equity
10 Years:10%
5 Years:11%
3 Years:12%
Last Year:8%

Syncom Formulations (India) Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital22227878787878787879869494
Reserves61651722313644556899131162176
Borrowings6236612129262588380
Other Liabilities23334231614837323352333854
Total Liabilities113123140138175175171173181292308377404
Fixed Assets515050464685898993919491120
CWIP00005010006260
Investments879623122111436468
Other Assets5466808510189798387189165196216
Total Assets113123140138175175171173181292308377404

Syncom Formulations (India) Ltd Reserves and Borrowings Chart

Syncom Formulations (India) Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 66002417-246-21610
Cash from Investing Activity -5-001-23-8-222-75-27-45
Cash from Financing Activity -1-601-2-2-2-0-772835
Net Cash Flow1-102-16-671-5-21

Syncom Formulations (India) Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days749271669191878177112114124
Inventory Days202936344329373739515153
Days Payable49911056313092755749663652
Cash Conversion Cycle442913742749616796129124
Working Capital Days91101839751701039092121131133
ROCE %7%10%15%16%15%14%9%9%12%21%11%10%

Syncom Formulations (India) Ltd Financial Efficiency Indicators Chart

Syncom Formulations (India) Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters41.18%41.18%44.01%44.01%46.12%50.57%50.57%50.57%50.57%50.57%50.57%50.57%
FIIs0.00%0.00%0.58%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public58.82%58.82%55.40%55.99%53.88%49.43%49.43%49.43%49.44%49.44%49.44%49.44%
No. of Shareholders72,73693,2071,20,8001,88,9812,32,6172,35,5172,32,7502,32,0692,27,4782,24,9252,24,2522,89,982

Syncom Formulations (India) Ltd Shareholding Pattern Chart

No. of Syncom Formulations (India) Ltd Shareholders

Syncom Formulations (India) Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal S&P BSE Healthcare ETF53870.090.01

Syncom Formulations (India) Ltd ROCE Trend

Syncom Formulations (India) Ltd EPS Trend

Syncom Formulations (India) Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 17Mar 16Mar 15
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)0.240.260.130.130.12
Diluted EPS (Rs.)0.240.240.130.130.12
Cash EPS (Rs.)0.260.270.170.170.16
Book Value[Excl.RevalReserv]/Share (Rs.)2.722.581.501.391.28
Book Value[Incl.RevalReserv]/Share (Rs.)2.722.581.501.391.28
Revenue From Operations / Share (Rs.)2.392.552.372.362.22
PBDIT / Share (Rs.)0.360.370.240.240.25
PBIT / Share (Rs.)0.310.320.200.200.21
PBT / Share (Rs.)0.280.300.200.200.21
Net Profit / Share (Rs.)0.210.220.130.130.12
NP After MI And SOA / Share (Rs.)0.210.220.130.130.12
PBDIT Margin (%)15.2614.5810.4310.4711.61
PBIT Margin (%)13.2312.788.748.849.63
PBT Margin (%)11.8411.918.598.819.51
Net Profit Margin (%)8.949.005.695.635.62
NP After MI And SOA Margin (%)8.949.005.695.635.62
Return on Networth / Equity (%)7.838.908.979.529.73
Return on Capital Employeed (%)11.2112.2012.9214.1515.78
Return On Assets (%)5.316.425.845.907.09
Total Debt / Equity (X)0.320.260.100.050.06
Asset Turnover Ratio (%)0.650.001.051.181.25
Current Ratio (X)1.611.791.501.432.48
Quick Ratio (X)1.421.541.321.172.13
Inventory Turnover Ratio (X)4.890.005.425.228.62
Dividend Payout Ratio (NP) (%)0.000.0014.8215.0716.00
Dividend Payout Ratio (CP) (%)0.000.0011.4311.6911.83
Earning Retention Ratio (%)0.000.0085.1884.9384.00
Cash Earning Retention Ratio (%)0.000.0088.5788.3188.17
Interest Coverage Ratio (X)10.9316.6268.46271.9894.68
Interest Coverage Ratio (Post Tax) (X)7.4111.2538.42148.5950.91
Enterprise Value (Cr.)629.15974.19159.72174.01334.20
EV / Net Operating Revenue (X)2.814.430.860.941.93
EV / EBITDA (X)18.3830.428.289.0316.60
MarketCap / Net Operating Revenue (X)2.474.170.830.941.93
Retention Ratios (%)0.000.0085.1784.9283.99
Price / BV (X)2.174.131.311.603.34
Price / Net Operating Revenue (X)2.474.170.830.941.93
EarningsYield0.030.020.060.050.02

Syncom Formulations (India) Ltd Profitability Ratios (%)

Syncom Formulations (India) Ltd Liquidity Ratios

Syncom Formulations (India) Ltd Liquidity Ratios (%)

Syncom Formulations (India) Ltd Interest Coverage Ratios (X)

Syncom Formulations (India) Ltd Valuation Ratios

Fair Value / Intrinsic Value of Syncom Formulations (India) Ltd

Fair Value: ₹12.99

The stock is overvalued by 8.52% compared to the current price ₹14.2

*Investments are subject to market risks

Strength and Weakness of Syncom Formulations (India) Ltd

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 0.25 and average Dividend Yield of 10.64%.
  2. The company has higher reserves (74.38 cr) compared to borrowings (26.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (185.15 cr) and profit (18.77 cr) over the years.
  1. The stock has a low average ROCE of 12.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 96.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 55.67, which may not be favorable.

Should I Buy Syncom Formulations (India) Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Syncom Formulations (India) Ltd:
    1. Net Profit Margin: 8.94% (Higher values are generally favorable)
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.21% (Industry Average ROCE: 10.53%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 7.41 (Higher values, preferably > 2, are recommended)
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.42 (Higher values, preferably > 1, are recommended)
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 55.8 (Industry average Stock P/E: 80.04)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.32 (Lower values, preferably < 1, are preferred)
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Syncom Formulations (India) Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE