Synergy Green Industries Reports Strong Sales Growth Amid High Debt Concerns

Synergy Green Industries, a microcap player in the castings and forgings sector, has demonstrated impressive financial performance, showcasing a robust growth trajectory. Over the past year, the company has achieved a remarkable annual growth rate of 28.32% in net sales, with operating profit soaring by an impressive 199.93%. This positive trend is reflected in the company's consistent performance, as it has reported favorable results for seven consecutive quarters.
In the latest quarter, Synergy Green Industries recorded its highest operating cash flow at Rs 37.69 crore and net sales reaching Rs 88.91 crore. The company’s operating profit to interest ratio stands at 3.51 times, indicating a strong capacity to cover interest expenses.

Despite these strengths, the company faces challenges with a high debt-to-EBITDA ratio of 3.08 times, suggesting potential difficulties in servicing its debt. Additionally, the average return on equity is at 5.42%, indicating modest profitability relative to shareholders' funds.

Overall, Synergy Green Industries has shown market-beating performance, generating a return of 52.99% over the past year, while also outperforming the BSE 500 index in various time frames.