Syncom Formulations (India) Limited was listed on the NSE and BSE on February 15, 2010. In the last five years, its stock has given a massive return of more than 100% to its investors. Will Syncom Formulations continue to provide such great returns in the future as well? Let’s explore Syncom Formulations’ growth potential and Syncom Formulations share price target from 2025 to 2050 in this article.
About Syncom Formulations
Syncom Formulations (India) Ltd. is a drugs business founded in 1988. It manufactures and sells a variety of medications, including tablets, capsules, syrups, and injections. The company focuses on providing affordable and high-quality healthcare products in India and other countries.
Syncom Formulations Business Model
- Manufacturing and Selling Medicines: Syncom manufactures and sells more than 500 drugs, including tablets, capsules, liquids, injections, and ointments.
- Domestic Market Operations: Using its division ‘Cratus Life Care,’ Syncom serves the Indian market by providing high-quality medicines at reasonable prices.
- Exporting Products: Syncom has a global presence, selling medicinal goods to approximately 25 countries and generating revenue from international markets.
Syncom Formulations Fundamental Analysis
| Stock Name | Syncom Formulations (India) Ltd. |
|---|---|
| NSE Symbol | SYNCOMF |
| Market Cap | ₹ 1558 Cr. |
| 52W High | ₹ 27.9 |
| 52W Low | ₹ 11.0 |
| Stock P/E | 40.9 |
| Book Value | ₹ 3.32 |
| Dividend Yield | 0.00 % |
| ROCE | 10.2 % |
| ROE | 8.51 % |
| Face Value | ₹ 1.00 |
| Shareholders | March 2023 | March 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 50.57% | 50.57% | 50.57% |
| FIIs | 0.00% | 0.08% | 0.13% |
| DIIs | 0.00% | 0.00% | 0.00% |
| Public | 49.44% | 49.35% | 49.30% |
| No. of Shareholders | 2,27,478 | 3,25,761 | 4,89,520 |
Key Factors Driving Syncom Formulations Future Growth
- Affordable Pricing: Syncom Formulations provides medicines at a low cost, making them available and increasing demand.
- Growing Market Demand: As health issues worsen, the demand for medicine rises, opening up new business opportunities for Syncom Formulations.
- Expanding Global Reach: Syncom Formulations grows its global reach by exporting medicines to a variety of countries, which helps to increase revenue and consumer trust.
- Investment in R&D: Syncom Formulations is focussing on innovation and developing new medicines to stay competitive.
- Strategic Investment Activities: In FY24, Syncom Formulations’ cash flow from investments increased to ₹830 million, indicating aggressive plans for long-term growth and asset enhancement.
Pros of Syncom Formulations
- Debt Free Company: Syncom Formulations is almost debt free company with a debt to equity ratio of 0.04, which shows its financial stability.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 0.13% in December 2024 from 0.10% in September 2024, which indicates growing confidence in the Syncom Formulations future potential by the FIIs.
Cons of Syncom Formulations
- Poor Sales Growth – Syncom Formulations has delivered a poor sales growth of 2% over the last three years.
- Decreasing Profits – Syncom Formulations’ profits are decreasing at a CAGR of -7%. over the last three Years.
- Overvaluation Concern: Syncom Formulations’ stock is trading at a PE ratio of 40.9 and a (P/B) ratio of 5.04, which shows that the stock is significantly overvalued. This high valuation may limit future upside potential and pose a risk of correction if market sentiment changes.
Syncom Formulations is a debt-free company, and it is continuously increasing its cash reserves from 17 crores in March 2014 to 218 crores in September 2024. In 2025, Syncom Formulations’ share price target would be ₹25, as per our analysis.
According to our prediction, its share price would be between ₹20 to ₹25 in 2025.
| Targets | Rs |
|---|---|
| Target 1 | 20 |
| Target 2 | 21.65 |
| Target 3 | 25 |
Syncom Formulations’ Trailing Twelve Months (TTM) sales is ₹388 crores, which is 57% more than its previous year’s sales. If its sales continues to grow at this speed. In 2030, Syncom Formulations’ share price target would be ₹95, as per our analysis.
According to our prediction, its share price would be between ₹51 to ₹95 in 2030.
| Targets | Rs |
|---|---|
| Target 1 | 51 |
| Target 2 | 74 |
| Target 3 | 95 |
Syncom Formulations’ Trailing Twelve Months (TTM) profit is ₹38 crores, which is 50% more than its previous year’s profit. If its profit continues to grow at this speed. In 2040, Syncom Formulations’ share price target would be ₹860, as per our analysis.
According to our prediction, its share price would be between ₹200 to ₹860 in 2040.
| Targets | Rs |
|---|---|
| Target 1 | 200 |
| Target 2 | 540 |
| Target 3 | 860 |
Syncom Formulations’ 5-year average ROE is 10.4%. If the company manages to improve it in the future, its stock prices will grow significantly in the long term. In 2050, Syncom Formulations’ share price target would be ₹5160, as per our analysis.
According to our prediction, its share price would be between ₹830 to ₹5160 in 2050.
| Targets | Rs |
|---|---|
| Target 1 | 830 |
| Target 2 | 2500 |
| Target 3 | 5160 |
As per our analysis, Syncom Formulations’ share price target are as follows: ₹25 in 2025, ₹33 in 2026, ₹40 in 2027, ₹56 in 2028, ₹70 in 2029, ₹95 in 2030, ₹290 in 2035, ₹860 in 2040, and ₹5160 in 2050.
| Years | Target Price |
|---|---|
| Syncom Formulations Share Price Target 2025 | ₹20 to ₹25 |
| Syncom Formulations Share Price Target 2026 | ₹24 to ₹33 |
| Syncom Formulations Share Price Target 2027 | ₹30 to ₹40 |
| Syncom Formulations Share Price Target 2028 | ₹35 to ₹56 |
| Syncom Formulations Share Price Target 2029 | ₹44 to ₹70 |
| Syncom Formulations Share Price Target 2030 | ₹51 to ₹95 |
| Syncom Formulations Share Price Target 2035 | ₹103 to ₹290 |
| Syncom Formulations Share Price Target 2040 | ₹200 to ₹860 |
| Syncom Formulations Share Price Target 2050 | ₹830 to ₹5160 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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