Stock Price Movement and Market Context
On 9 January 2026, Syncom Formulations (India) Ltd's share price touched Rs.13.23, the lowest level recorded in the past year. The stock has declined by 0.52% on the day, aligning with sector performance, and has experienced a consecutive two-day fall resulting in a cumulative loss of 3.79%. This downward trend is underscored by the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market has shown resilience. The Sensex, after a negative start, recovered to close at 84,238.06 points, up 0.07%, and remains within 2.28% of its 52-week high of 86,159.02. Mid-cap stocks led gains with the BSE Mid Cap index rising by 0.19%, highlighting a divergence between Syncom Formulations and the general market trend.
Performance Over the Past Year
Syncom Formulations has underperformed significantly over the last twelve months, delivering a negative return of 28.64%. This contrasts sharply with the Sensex's positive return of 8.53% and the BSE500's 7.24% gain over the same period. The stock’s 52-week high was Rs.23.46, indicating a steep decline of approximately 43.6% from that peak.
The company’s Mojo Score currently stands at 46.0, with a Mojo Grade of Sell, downgraded from Hold as of 1 August 2025. This reflects a reassessment of the company’s prospects based on its recent financial and market performance.
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Financial Trends and Growth Metrics
Over the past five years, Syncom Formulations has experienced a decline in key financial metrics. Net sales have contracted at an annualised rate of 63.63%, while operating profit has decreased by 52.27% over the same period. These figures highlight the company’s challenges in sustaining long-term growth.
Despite these declines, recent half-year results indicate some positive developments. The company reported net sales of Rs.238.62 crores for the latest six months, reflecting a growth of 25.87%. Operating profit increased by 8.29%, and profit after tax (PAT) surged by 72.46% to Rs.32.32 crores. Return on capital employed (ROCE) for the half year reached a high of 22.06%, while return on equity (ROE) stood at 16.6%, suggesting efficient utilisation of capital in recent periods.
Valuation and Market Perception
Syncom Formulations is currently trading at a price-to-book value of 3.4, which is a premium relative to its peers’ historical valuations. The company’s PEG ratio is 0.2, indicating that despite the stock’s negative price performance, earnings growth has been substantial, with profits rising by 90.1% over the past year. This disparity between earnings growth and stock price performance may reflect market caution or other underlying concerns.
The company maintains a low average debt-to-equity ratio of 0.05 times, indicating a conservative capital structure with limited leverage.
Market Participation and Institutional Holdings
Domestic mutual funds currently hold no stake in Syncom Formulations, a notable factor given their capacity for detailed research and due diligence. This absence of institutional ownership may suggest a lack of conviction in the stock’s valuation or business outlook at prevailing prices.
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Sector and Market Comparison
Within the Pharmaceuticals & Biotechnology sector, Syncom Formulations’ recent performance contrasts with broader sector trends. While the sector has maintained relative stability, the stock’s sustained decline and trading below all major moving averages indicate a divergence from sector momentum.
The Sensex’s recovery and proximity to its 52-week high underscore a market environment where select stocks and sectors are outperforming, highlighting the challenges faced by Syncom Formulations in regaining investor confidence.
Summary of Key Metrics
To summarise, Syncom Formulations (India) Ltd’s stock price has declined to Rs.13.23, its lowest level in a year, reflecting a 28.64% loss over the past twelve months. Despite recent improvements in profitability and sales growth, the company’s long-term sales and operating profit trends remain negative. The stock’s valuation metrics show a premium price-to-book ratio and a low PEG ratio, while institutional participation remains absent. The broader market and sector context further emphasise the stock’s relative underperformance.
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