Recent Price Performance and Market Comparison
Syncom Formulations has underperformed significantly against the broader market indices over multiple time frames. In the past week, the stock declined by 3.97%, compared to the Sensex’s modest fall of 1.18%. Over the last month, the stock’s loss widened to 8.82%, while the Sensex remained relatively stable with a decline of just 1.08%. Year-to-date, the stock has dropped 5.05%, again underperforming the Sensex’s 1.22% fall. Most notably, over the last year, Syncom Formulations has delivered a negative return of 29.97%, whereas the Sensex gained 7.72% during the same period.
These figures highlight a persistent weakness in the stock’s price action, which is further emphasised by its trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a bearish sentiment among investors and a lack of short-term momentum.
Patience pays off here! This Micro Cap from Fertilizers sector has delivered steady gains quarter after quarter. Now proudly part of our Reliable Performers list.
- - New Reliable Performer
- - Steady quarterly gains
- - Fertilizers consistency
Financial Performance: A Mixed Picture
Despite the recent price weakness, Syncom Formulations has reported some positive financial metrics. The company declared very positive results in September 2025, with operating profit growing by 8.29%. Over the latest six months, profit after tax (PAT) surged by 72.46% to ₹32.32 crores, while net sales increased by 25.87% to ₹238.62 crores. The company’s return on capital employed (ROCE) for the half-year stood at a robust 22.06%, and its return on equity (ROE) is a respectable 16.6%. These figures indicate operational efficiency and profitability improvements in the short term.
However, the stock trades at a premium valuation with a price-to-book value of 3.4, which is higher than the average historical valuations of its peers. While the company’s profits have risen by 90.1% over the past year, the stock’s price has not reflected this growth, resulting in a low PEG ratio of 0.2. This disparity suggests that the market may be cautious about the sustainability of earnings growth or other underlying risks.
Long-Term Growth Concerns and Market Sentiment
One of the key reasons for the stock’s decline is the poor long-term growth trajectory. Over the past five years, net sales have contracted at an annual rate of 63.63%, and operating profit has declined by 52.27%. Such a steep downturn in core business metrics raises questions about the company’s ability to maintain growth momentum and compete effectively in its sector.
Additionally, the lack of interest from domestic mutual funds is notable. Despite the company’s size, domestic mutual funds hold no stake in Syncom Formulations. Given that these funds typically conduct thorough research and invest in companies with strong fundamentals and growth prospects, their absence may signal concerns about the company’s valuation or business model.
Furthermore, the stock’s liquidity remains adequate for moderate trade sizes, with delivery volumes rising by 4.76% on 07 January compared to the five-day average. However, this increased participation has not translated into price strength, indicating that selling pressure may be outweighing buying interest.
Holding Syncom Formul. from Pharmaceuticals & Biotechnology? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Conclusion: Why the Stock Is Falling
In summary, Syncom Formulations (India) Ltd’s share price decline as of 08 January is primarily driven by its sustained underperformance relative to market benchmarks and concerns over its long-term growth prospects. While recent quarterly results have been encouraging, with strong profit growth and operational improvements, these have not been sufficient to offset the negative sentiment stemming from poor five-year sales and profit trends. The absence of domestic mutual fund interest further compounds investor caution.
Trading below all major moving averages and hitting a new 52-week low, the stock currently reflects a market that is wary of its future trajectory despite pockets of positive financial data. Investors should weigh these factors carefully when considering exposure to Syncom Formulations, balancing the short-term operational gains against the longer-term challenges the company faces.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
