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

6 Followers

Syncom Formulation (India) Ltd.

(NSE:SYNCOMF)

Select Model

Rating:73Outperform

Price Target:INR 21.50▲(4.57% Upside)

Action:reiterated

Date:10/08/26

The score is driven primarily by improved financial quality—especially the sharply strengthened balance sheet and stronger FY2026 profitability—supported by clear bullish price momentum. This is tempered by a higher P/E with a very low dividend yield and some remaining concerns around revenue softness, gross-margin compression, and historically inconsistent cash-flow conversion.

Positive Factors

Balance Sheet De-riskingThe sharp reduction in debt materially strengthens solvency and financial flexibility. Extremely low leverage should reduce financing pressure and leave more capacity to support operations, withstand business volatility, or fund future growth without relying heavily on additional borrowing.

Negative Factors

Revenue ContractionThe latest revenue decline interrupts the company’s prior expansion and raises questions about the durability of demand and near-term growth. Continued softness could limit operating leverage, reduce reinvestment capacity, and make recent profit improvement harder to sustain.

Syncom Formulation (India) Ltd. (SYNCOMF) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 21.04B
Dividend Yield: 0.49%
Average Volume (3M): 1.32M
Price to Earnings (P/E): 22.6
Beta (1Y): 1.13
Revenue Growth: 0.44%
EPS Growth: 48.60%
Country: India
Employees: 998
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

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

Company Description

Established in 1985 and based in Indore, India, Syncom Formulations (India) Limited specializes in the development, marketing, and sale of a wide array of finished pharmaceutical products. The company provides an extensive portfolio addressing numero...

Syncom Formulation (India) Ltd. Financial Statement Overview

Summary

Overall fundamentals are improved: FY2026 profitability strengthened (net margin ~15.6%) and the balance sheet de-risked materially with very low leverage (debt-to-equity ~0.004). Offsets are a ~5% FY2026 revenue decline, gross margin compression (~26.8% vs ~33.9% in FY2025), and a history of uneven cash-flow conversion despite a strong FY2026 rebound.

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.98B	4.89B	4.65B	2.63B	2.24B	2.18B
Gross Profit	1.42B	1.31B	1.58B	559.50M	825.58M	709.74M
EBITDA	1.08B	1.09B	715.66M	430.28M	341.47M	319.52M
Net Income	855.30M	764.38M	494.35M	253.14M	200.71M	197.90M
Balance Sheet
Total Assets	0	5.34B	4.13B	4.05B	3.78B	3.08B
Cash, Cash Equivalents and Short-Term Investments	1.13B	1.13B	899.28M	1.32B	708.97M	402.47M
Total Debt	0	14.94M	45.84M	724.87M	831.82M	577.91M
Total Liabilities	-4.15B	1.19B	711.23M	1.17B	1.22B	860.17M
Stockholders Equity	4.15B	4.15B	3.42B	2.88B	2.56B	2.22B
Cash Flow
Free Cash Flow	461.83M	452.54M	134.77M	-140.95M	-101.05M	50.16M
Operating Cash Flow	560.11M	569.24M	234.36M	-59.58M	105.29M	163.29M
Investing Cash Flow	-524.72M	-506.23M	-182.04M	830.20M	-449.53M	-270.73M
Financing Cash Flow	-39.76M	-18.66M	-679.03M	-145.58M	350.01M	82.94M

Syncom Formulation (India) Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price20.56

Price Trends

50DMA20.69Negative

100DMA17.31Positive

200DMA15.25Positive

Market Momentum

MACD-0.44Positive

RSI38.65Neutral

STOCH5.45Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SYNCOMF, the sentiment is Neutral. The current price of 20.56 is below the 20-day moving average (MA) of 21.60, below the 50-day MA of 20.69, and above the 200-day MA of 15.25, indicating a neutral trend. The MACD of -0.44 indicates Positive momentum. The RSI at 38.65 is Neutral, neither overbought nor oversold. The STOCH value of 5.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SYNCOMF.

Syncom Formulation (India) Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SYNCOMF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:JAGSNPHARM	78Outperform	INR 14.32B	32.68	―	1.80%	11.71%	-26.92%
IN:SYNCOMF	73Outperform	INR 17.94B	22.59	―	0.49%	0.44%	48.60%
IN:LINCOLN	67Neutral	INR 10.10B	10.60	―	0.35%	10.20%	11.70%
IN:WANBURY	56Neutral	INR 6.74B	11.13	―	―	3.63%	24.22%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:BAJAJHCARE	55Neutral	INR 10.31B	50.92	―	0.49%	14.25%	-58.26%
IN:INDOCO	48Neutral	INR 19.82B	62.94	―	0.09%	10.75%	―

* General Sector Average

Performance Comparison

IN:SYNCOMF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SYNCOMF	Syncom Formulation (India) Ltd.	20.56	4.54	28.33%
IN:BAJAJHCARE	Bajaj Healthcare Ltd	308.45	-135.59	-30.54%
IN:INDOCO	Indoco Remedies Limited	214.20	-49.97	-18.92%
IN:JAGSNPHARM	Jagsonpal Pharmaceuticals Ltd.	221.80	8.48	3.97%
IN:LINCOLN	Lincoln Pharmaceuticals Ltd	513.10	-8.37	-1.61%
IN:WANBURY	Wanbury Limited	192.55	-62.10	-24.39%

Syncom Formulation (India) Ltd. Corporate Events

Syncom Formulations Sets Dividend Record Date and Offers Waiver Option Ahead of Virtual AGM

Sep 18, 2026

Syncom Formulations (India) Ltd. has set 23 September 2026 as the record date to determine shareholder eligibility for a proposed final dividend of 10%, or Rs 0.10 per equity share of face value Rs 1, for the financial year 2025-26, subject to shareh...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 08, 2026

Syncom Formulation (India) Ltd. AI Stock Analysis