Stock Performance and Market Context
On 19 Jan 2026, Syncom Formulations (India) Ltd (Stock ID: 831770) recorded a day change of -2.00%, underperforming its Pharmaceuticals & Biotechnology sector by 1.24%. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This new low of Rs.12.75 is a stark contrast to its 52-week high of Rs.23.46, representing a decline of approximately 45.6% over the past year.
The broader market, represented by the Sensex, opened flat but declined by 445.38 points (-0.62%) to close at 83,049.11. Despite this dip, the Sensex remains just 3.74% below its 52-week high of 86,159.02. However, the index has experienced a three-week consecutive fall, losing 3.16% in that period. Notably, the Sensex trades below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed technical signals.
In comparison, Syncom Formulations has underperformed significantly over the last year, with a negative return of -32.14%, while the Sensex has delivered a positive return of 8.40%. The BSE500 index also generated a 7.45% return in the same period, highlighting the stock’s relative weakness within the broader market and its sector.
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Financial Performance and Growth Trends
Syncom Formulations’ long-term growth metrics have been subdued. Over the past five years, net sales have declined at an annual rate of -63.63%, while operating profit has decreased by -52.27% annually. These figures reflect challenges in sustaining revenue and profitability growth over an extended period.
Despite these trends, the company has demonstrated some recent positive financial results. For the latest six months, net sales stood at Rs.238.62 crores, growing by 25.87%, while profit after tax (PAT) reached Rs.32.32 crores, marking a robust growth of 72.46%. Operating profit also increased by 8.29%, contributing to six consecutive quarters of positive results. The company’s return on capital employed (ROCE) for the half-year was a notable 22.06%, and return on equity (ROE) stood at 16.6%, indicating efficient utilisation of capital.
Syncom’s valuation metrics reflect a fair assessment relative to its fundamentals. The stock trades at a price-to-book value of 3.2, which is a premium compared to its peers’ historical averages. The company’s PEG ratio is 0.2, suggesting that despite the recent price decline, earnings growth has outpaced the stock price movement over the past year, with profits rising by 90.1% during this period.
Shareholding and Market Sentiment
Domestic mutual funds hold no stake in Syncom Formulations, which may indicate a cautious stance by institutional investors who typically conduct in-depth research before investing. The absence of domestic mutual fund participation contrasts with the company’s size and recent positive earnings growth, reflecting a divergence between fundamental performance and market sentiment.
The company maintains a low average debt-to-equity ratio of 0.05 times, underscoring a conservative capital structure with limited leverage. This financial prudence may provide some stability amid the stock’s price volatility.
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Summary of Key Metrics
To summarise, Syncom Formulations (India) Ltd’s stock has reached a new 52-week low of Rs.12.75, reflecting a significant decline from its peak of Rs.23.46. The stock’s performance over the past year has lagged the broader market and its sector, with a negative return of -32.14% compared to the Sensex’s positive 8.40%.
While the company’s long-term sales and operating profit growth have been negative, recent half-year results show encouraging signs of recovery with strong PAT and net sales growth. The company’s conservative debt levels and solid returns on capital and equity provide a foundation of financial stability.
However, the lack of domestic mutual fund participation and the stock’s trading below all major moving averages indicate prevailing caution among investors. The stock’s premium valuation relative to peers also suggests that the market is pricing in risks despite recent earnings improvements.
Overall, Syncom Formulations’ current share price reflects a complex interplay of historical underperformance, recent financial improvements, and market sentiment within the Pharmaceuticals & Biotechnology sector.
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