Syncom Formulations (India) Shows Impressive Growth, Receives 'Buy' Recommendation from MarketsMOJO

Syncom Formulations (India) is a smallcap pharmaceutical company that has recently caught the attention of investors. With a low Debt to Equity ratio and a growth in Net Sales of 17.02%, the company has declared very positive results in June 2024. This has led to MarketsMOJO upgrading their stock call to 'Buy' on October 14, 2024.
One of the key factors contributing to the 'Buy' recommendation is the company's strong financial performance. With an operating profit to interest ratio of 26.82 times and a net sales growth of 27.37% in the last 9 months, Syncom Formulations (India) has shown impressive growth. Additionally, their profits have also increased by 29.66% in the same period.

From a technical standpoint, the stock is currently in a bullish range and has shown a positive trend since October 8, 2024. This has resulted in a return of -1.3% since then. Furthermore, multiple indicators such as MACD, KST, and DOW are also showing a bullish trend for the stock.

In the long term, Syncom Formulations (India) has outperformed the BSE 500 index and has generated a return of 136.26% in the last year. However, there are some risks to consider. The company's net sales and operating profit have only grown at an annual rate of 6.60% and 22.57% respectively in the last 5 years. This could potentially impact their long term growth.

Moreover, with a ROE of 8.8 and a price to book value of 6.9, the stock is currently trading at a very expensive valuation. However, it is still trading at a discount compared to its historical valuations. Additionally, while the stock has generated a high return in the last year, its profits have only increased by 32.1%, resulting in a PEG ratio of 2.2.

It is also worth noting that despite being a smallcap company, domestic mutual funds hold only 0% of the company's shares. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

In conclusion, Syncom Formulations (India) has shown strong financial performance and has caught the attention of investors. However, there are some risks to consider, such as the company's long term growth and expensive valuation. Investors should conduct their own research and make an informed decision before investing in the stock.