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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 524470 | NSE: SYNCOMF

Syncom Formulations (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 10:48 pm

Market Cap 2,031 Cr.
Current Price 21.6
High / Low27.9/7.25
Stock P/E75.2
Book Value 3.05
Dividend Yield0.00 %
ROCE10.2 %
ROE8.51 %
Face Value 1.00
PEG Ratio11.07

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Syncom Formulations (India) Ltd

Competitors of Syncom Formulations (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,723 Cr. 342390/10868.1 18.50.20 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 63.1 Cr. 85.092.8/19.643.2 9.580.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 27.2 Cr. 18.618.8/7.60160 5.000.00 %4.06 %3.33 % 10.0
Godavari Drugs Ltd 93.3 Cr. 124155/82.114.5 51.80.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 14,458 Cr. 1,1781,335/60932.4 1901.91 %28.1 %21.1 % 2.00
Industry Average21,180.64 Cr1,295.6863.74187.120.29%16.84%16.00%6.69

All Competitor Stocks of Syncom Formulations (India) Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales65.5451.2752.9457.2358.2351.4054.4957.3861.3759.3662.3963.3473.27
Expenses57.1244.2747.2752.3456.1947.9250.2051.4755.4353.2156.2956.5564.46
Operating Profit8.427.005.674.892.043.484.295.915.946.156.106.798.81
OPM %12.85%13.65%10.71%8.54%3.50%6.77%7.87%10.30%9.68%10.36%9.78%10.72%12.02%
Other Income3.761.372.722.245.692.982.871.986.791.884.004.332.87
Interest0.160.190.120.151.040.500.620.721.291.121.081.081.17
Depreciation1.050.970.970.991.011.001.181.201.171.100.881.451.30
Profit before tax10.977.217.305.995.684.965.365.9710.275.818.148.599.21
Tax %36.65%24.97%23.01%32.89%16.20%22.18%33.02%30.49%17.62%26.85%23.71%25.38%26.71%
Net Profit6.955.405.624.014.763.873.604.158.474.256.216.426.75
EPS in Rs0.090.070.070.050.060.040.040.040.090.050.070.070.07

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales115151173184185159187206245216222258
Expenses104135155167168147175189207196202231
Operating Profit111618171612121738202028
OPM %9%11%11%9%9%7%6%8%16%9%9%11%
Other Income111334557121513
Interest100000010234
Depreciation333334444455
Profit before tax81416161612131741262732
Tax %33%33%38%36%33%28%12%18%28%24%24%26%
Net Profit691010119111429202024
EPS in Rs0.070.120.130.130.140.110.140.180.370.230.210.25
Dividend Payout %24%17%16%15%15%0%0%0%0%131%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)50.00%11.11%0.00%10.00%-18.18%22.22%27.27%107.14%-31.03%0.00%20.00%
Change in YoY Net Profit Growth (%)0.00%-38.89%-11.11%10.00%-28.18%40.40%5.05%79.87%-138.18%31.03%20.00%

Syncom Formulations (India) Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:7%
3 Years:2%
TTM:23%
Compounded Profit Growth
10 Years:9%
5 Years:16%
3 Years:-7%
TTM:32%
Stock Price CAGR
10 Years:11%
5 Years:99%
3 Years:25%
1 Year:143%
Return on Equity
10 Years:10%
5 Years:11%
3 Years:9%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital227878787878787879869494
Reserves651722313644556899131162192
Borrowings236612129262588372
Other Liabilities334231614837323352333833
Total Liabilities123140138175175171173181292308377392
Fixed Assets5050464685898993919491120
CWIP0005010006260
Investments79623122111436466
Other Assets66808510189798387189165196206
Total Assets123140138175175171173181292308377392

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 6002417-246-21610-6
Cash from Investing Activity -001-23-8-222-75-27-4584
Cash from Financing Activity -601-2-2-2-0-772835-15
Net Cash Flow-102-16-671-5-2163

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow9.0013.0012.0011.004.000.003.0015.00-24.00-38.00-63.00-44.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days9271669191878177112114124132
Inventory Days293634432937373951515349
Days Payable91105631309275574966365233
Cash Conversion Cycle2913742749616796129124148
Working Capital Days101839751701039092121131133153
ROCE %10%15%16%15%14%9%9%12%21%11%10%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters44.01%44.01%46.12%50.57%50.57%50.57%50.57%50.57%50.57%50.57%50.57%50.57%
FIIs0.58%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.08%0.09%
Public55.40%55.99%53.88%49.43%49.43%49.43%49.44%49.44%49.44%49.44%49.35%49.34%
No. of Shareholders1,20,8001,88,9812,32,6172,35,5172,32,7502,32,0692,27,4782,24,9252,24,2522,89,9823,25,7613,76,530

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal S&P BSE Healthcare ETF5,3870.090.015,3872024-10-090%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 17Mar 16
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)0.340.240.260.130.13
Diluted EPS (Rs.)0.340.240.240.130.13
Cash EPS (Rs.)0.310.260.270.170.17
Book Value[Excl.RevalReserv]/Share (Rs.)3.072.722.581.501.39
Book Value[Incl.RevalReserv]/Share (Rs.)3.072.722.581.501.39
Revenue From Operations / Share (Rs.)2.802.392.552.372.36
PBDIT / Share (Rs.)0.450.360.370.240.24
PBIT / Share (Rs.)0.400.310.320.200.20
PBT / Share (Rs.)0.360.280.300.200.20
Net Profit / Share (Rs.)0.260.210.220.130.13
NP After MI And SOA / Share (Rs.)0.260.210.220.130.13
PBDIT Margin (%)16.3915.2614.5810.4310.47
PBIT Margin (%)14.5913.2312.788.748.84
PBT Margin (%)12.8911.8411.918.598.81
Net Profit Margin (%)9.618.949.005.695.63
NP After MI And SOA Margin (%)9.618.949.005.695.63
Return on Networth / Equity (%)8.787.838.908.979.52
Return on Capital Employeed (%)12.8911.2112.2012.9214.15
Return On Assets (%)6.255.316.425.845.90
Total Debt / Equity (X)0.250.320.260.100.05
Asset Turnover Ratio (%)0.670.650.001.051.18
Current Ratio (X)2.581.611.791.501.43
Quick Ratio (X)2.381.421.541.321.17
Inventory Turnover Ratio (X)6.224.890.005.425.22
Dividend Payout Ratio (NP) (%)0.000.000.0014.8215.07
Dividend Payout Ratio (CP) (%)0.000.000.0011.4311.69
Earning Retention Ratio (%)0.000.000.0085.1884.93
Cash Earning Retention Ratio (%)0.000.000.0088.5788.31
Interest Coverage Ratio (X)9.6510.9316.6268.46271.98
Interest Coverage Ratio (Post Tax) (X)6.667.4111.2538.42148.59
Enterprise Value (Cr.)1055.54629.15974.19159.72174.01
EV / Net Operating Revenue (X)4.012.814.430.860.94
EV / EBITDA (X)24.4518.3830.428.289.03
MarketCap / Net Operating Revenue (X)3.992.474.170.830.94
Retention Ratios (%)0.000.000.0085.1784.92
Price / BV (X)3.652.174.131.311.60
Price / Net Operating Revenue (X)3.992.474.170.830.94
EarningsYield0.020.030.020.060.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Syncom Formulations (India) Ltd as of October 11, 2024 is: ₹20.33

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 11, 2024, Syncom Formulations (India) Ltd is Overvalued by 7.59% compared to the current share price ₹22.00

Intrinsic Value of Syncom Formulations (India) Ltd as of October 11, 2024 is: ₹21.71

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 11, 2024, Syncom Formulations (India) Ltd is Overvalued by 1.32% compared to the current share price ₹22.00

Last 5 Year EPS CAGR: 6.79%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 0.29 and average Dividend Yield of 11.64%.
  2. The company has higher reserves (76.83 cr) compared to borrowings (27.25 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (191.75 cr) and profit (19.83 cr) over the years.
  1. The stock has a low average ROCE of 12.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 102.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 64.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Syncom Formulations (India) Ltd:
    1. Net Profit Margin: 9.61%
      • 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: 12.89% (Industry Average ROCE: 16.84%)
      • 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. ROE%: 8.78% (Industry Average ROE: 16%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 6.66
      • 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.
    5. Quick Ratio: 2.38
      • 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.
    6. Stock P/E: 75.2 (Industry average Stock P/E: 63.74)
      • 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.
    7. Total Debt / Equity: 0.25
      • 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.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

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, 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
Mrs. Ruchi JindalIndependent Woman Director
Mr. Ritesh Kumar LunkadIndependent Director
Mr. Ankit JainIndependent Director

FAQ

What is the latest fair value of Syncom Formulations (India) Ltd?

The latest fair value of Syncom Formulations (India) Ltd is ₹20.33.

What is the Market Cap of Syncom Formulations (India) Ltd?

The Market Cap of Syncom Formulations (India) Ltd is 2,031 Cr..

What is the current Stock Price of Syncom Formulations (India) Ltd as on 11 October 2024?

The current stock price of Syncom Formulations (India) Ltd as on 11 October 2024 is ₹21.6.

What is the High / Low of Syncom Formulations (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Syncom Formulations (India) Ltd stocks is 27.9/7.25.

What is the Stock P/E of Syncom Formulations (India) Ltd?

The Stock P/E of Syncom Formulations (India) Ltd is 75.2.

What is the Book Value of Syncom Formulations (India) Ltd?

The Book Value of Syncom Formulations (India) Ltd is 3.05.

What is the Dividend Yield of Syncom Formulations (India) Ltd?

The Dividend Yield of Syncom Formulations (India) Ltd is 0.00 %.

What is the ROCE of Syncom Formulations (India) Ltd?

The ROCE of Syncom Formulations (India) Ltd is 10.2 %.

What is the ROE of Syncom Formulations (India) Ltd?

The ROE of Syncom Formulations (India) Ltd is 8.51 %.

What is the Face Value of Syncom Formulations (India) Ltd?

The Face Value of Syncom Formulations (India) Ltd is 1.00.

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