Current Rating Overview
On 14 November 2025, Synergy Green Industries Ltd’s rating was revised to Sell from a previous Hold status, accompanied by a significant drop in its Mojo Score from 58 to 37. This score, which gauges the overall attractiveness of the stock, now places the company firmly in the sell category, signalling caution for investors. The Mojo Grade reflects a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical outlook.
How the Stock Looks Today: Quality Assessment
As of 12 January 2026, Synergy Green Industries Ltd holds an average quality grade. This suggests that while the company maintains some operational stability, it does not exhibit strong competitive advantages or superior profitability metrics that would typically characterise a higher-quality stock. The company’s ability to service its debt remains a concern, with an EBIT to Interest ratio averaging just 1.68, indicating limited cushion to cover interest expenses comfortably. This weak debt servicing capability is a critical factor weighing on the stock’s quality assessment.
Valuation Perspective
Despite the challenges in quality and financial trends, the stock’s valuation is currently deemed attractive. This implies that Synergy Green Industries Ltd is trading at levels that may offer value relative to its earnings potential or asset base. However, an attractive valuation alone does not offset the risks posed by deteriorating financial performance and operational challenges. Investors should consider whether the valuation adequately compensates for the underlying risks.
Financial Trend and Profitability
The company’s financial trend is categorised as very negative. The latest data shows a decline in operating profit by 11.03%, signalling weakening core business performance. Quarterly operating profit to interest coverage has fallen to a low of 1.98 times, underscoring the strain on earnings relative to debt costs. Additionally, the company reported a 45.5% drop in profit after tax (PAT) for the most recent quarter, amounting to ₹2.36 crores, while interest expenses for the nine-month period rose by 23.57% to ₹13.84 crores. These figures highlight a deteriorating financial health that is unfavourable for shareholders.
Technical Outlook
From a technical standpoint, the stock is currently exhibiting a sideways trend. Price movements over recent months have been relatively flat, with minor fluctuations: a 3.05% gain on the latest trading day, a 2.50% rise over the past week, but declines of 2.47% and 2.45% over the last month and three months respectively. The six-month performance shows a marginal fall of 0.96%, while the year-to-date return is a modest 2.09%. Over the past year, however, the stock has delivered a notable 29.65% gain, reflecting some longer-term resilience despite recent volatility.
Investor Sentiment and Market Position
Synergy Green Industries Ltd remains a microcap within the Castings & Forgings sector, which often entails higher volatility and liquidity risks. Notably, domestic mutual funds hold no stake in the company, which may indicate a lack of confidence or insufficient research coverage from institutional investors. This absence of institutional backing can contribute to subdued market interest and heightened price sensitivity.
Implications of the Sell Rating
The Sell rating from MarketsMOJO suggests that investors should exercise caution with Synergy Green Industries Ltd at present. The combination of weak financial trends, average quality, and sideways technicals outweighs the attractive valuation, signalling potential downside risks. For investors, this rating implies that the stock may underperform relative to the broader market or sector peers in the near term. It is advisable to closely monitor the company’s financial recovery and operational improvements before considering new investments.
Summary for Investors
In summary, Synergy Green Industries Ltd’s current Sell rating reflects a comprehensive assessment of its fundamentals and market behaviour as of 12 January 2026. While the stock’s valuation appears appealing, the very negative financial trend and limited quality metrics present significant headwinds. The sideways technical pattern further suggests a lack of clear momentum. Investors should weigh these factors carefully and consider alternative opportunities with stronger financial health and growth prospects.
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Looking Ahead
Going forward, the key factors to watch for Synergy Green Industries Ltd include improvements in operating profitability, better interest coverage ratios, and signs of renewed technical strength. Any positive developments in these areas could help stabilise the stock and potentially improve its rating. Conversely, continued financial deterioration or lack of institutional interest may reinforce the current cautious stance.
Conclusion
MarketsMOJO’s Sell rating on Synergy Green Industries Ltd as of 14 November 2025, supported by the latest data from 12 January 2026, serves as a prudent advisory for investors. The stock’s challenges in financial health and operational performance currently outweigh its valuation appeal, suggesting that investors should prioritise risk management and consider more robust alternatives within the Castings & Forgings sector or broader market.
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