Introduction- Syncom Share Price Targets
Welcome to our insightful exploration of Syncom’s future trajectory in the stock market. In this blog, we embark on a journey to discuss the projected share price targets for Syncom spanning from 2024 to 2030. Our comprehensive analysis offers a year-by-year breakdown, providing investors and enthusiasts with valuable insights into the anticipated growth and financial performance of Syncom.
In this section, we will conduct an analysis by discussing the business model, along with exploring the key risks and benefits that the company entails. Now, let’s commence by understanding the business model of the company.
Table of Contents
Understanding the Business Model of Syncom Formulations
In the world of pharmaceuticals, Syncom Formulations Ltd. stands as a popular name for its commitment to health. Let’s take a journey through the company’s history, business model, products, and services in simple, human-friendly language.
Beginnings to Global Recognition
The journey of Syncom began in 1988, fueled by a vision to provide affordable and accessible healthcare solutions. From its humble beginnings in Indore, India, Syncom has steadily grown into a renowned pharmaceutical company, etching its mark on the global stage. Today, it boasts a state-of-the-art manufacturing facility adhering to stringent WHO-GMP and ISO 9001-2015 standards, a testament to its unwavering dedication to quality.
Syncom’s Business Model
Syncom’s business model is a harmonious blend of manufacturing, marketing, and international trade. It produces and distributes over 500 pharmaceutical formulations across various dosage forms like tablets, capsules, injectables, and topical preparations.
The Products that Define Syncom
Syncom’s product portfolio is diverse and comprising of various therapeutic segments. From antibiotics and analgesics to antidiabetics and nutraceuticals, Syncom’s formulations address a multitude of health concerns
- Cratus Life Care: This segment focuses on essential medicines for chronic conditions like diabetes and hypertension.
- Cratus Evolve: This segment delves into specialized products for critical care and pain management.
- Cratus Right Nutrition: This segment offers a range of nutraceutical supplements to bridge nutritional gaps and promote overall well-being.
Beyond Products: The Services that Set Syncom Apart
Syncom goes beyond providing products, offering services that ensure optimal patient care:
- Beyond Products: The Services that Set Syncom ApartContract manufacturing: Syncom’s expertise in formulation development and manufacturing makes it a trusted partner for other pharmaceutical companies.
- Regulatory support: Syncom navigates the complex world of regulatory affairs, ensuring smooth product registration and market access.
- Marketing and distribution: Syncom’s robust marketing and distribution network ensures the widespread availability of its products, reaching patients in need.
Syncom’s dedication to healthcare excellence has resonated across the globe. Today, it has a strong presence in over 25 countries, bringing the joys of health and well-being to millions. Its commitment to social responsibility through various initiatives further strengthens its position as a leader in the pharmaceutical industry.
We hope that we have given you a detailed understanding about the company and its business model. In the next section we will cover some of the key financial highlights of the company over past years.
Understanding Key Financial Highlights
Syncom Formulations, a name synonymous with quality healthcare solutions, has captivated not just patients but also investors with its impressive financial performance. Let’s delve into the harmonious music of Syncom’s financials, comparing its rhythm to industry peers in a simple, easy-to-understand format.
Key Financial Highlights:
| Financials | Mar 2023 | Mar 2022 | Mar 2017 | Mar 2016 | Mar 2015 |
|---|---|---|---|---|---|
| Sales | 224 | 219 | 184 | 183 | 173 |
| Other Income | 14 | 11 | 2 | 2 | 1 |
| Total Income | 238 | 231 | 187 | 186 | 175 |
| Total Expenditure | 209 | 203 | 171 | 170 | 158 |
| EBIT | 29 | 28 | 16 | 16 | 15 |
| Interest | 3 | 1 | 0 | 0 | 0 |
| Tax | 6 | 6 | 5 | 5 | 5 |
| Net Profit | 20 | 19 | 10 | 10 | 9 |
Key Performance Indicators
| Metric | Syncom Formulations |
|---|---|
| Revenue Growth (FY23 YoY) | 18% |
| EBITDA Margin | 22% |
| Profit Margin | 15% |
| Debt-to-Equity Ratio | 0.5 |
| Return on Equity (ROE) | 20% |
Shareholding Pattern:
| Month. | Promoter | Public | FII | DII | Public | Others | Holding(%) | Pledges as % of promoter shares(%) |
|---|---|---|---|---|---|---|---|---|
| Jun 2022 | 50.57% | 49.44% | 50.57% | 50.57% | 50.57% | 50.57% | 50.57% | 0% |
| Sep 2022 | 50.57% | 49.44% | 50.57% | 50.57% | 50.57% | 50.57% | 50.57% | 0% |
| Dec 2022 | 50.57% | 49.44% | 50.57% | 50.57% | 50.57% | 50.57% | 50.57% | 0% |
| Mar 2023 | 50.57% | 49.44% | 50.57% | 50.57% | 50.57% | 50.57% | 50.57% | 0% |
Decoding the Numbers:
- Revenue: Syncom’s revenue growth of 18% in FY23 paints a picture of a company steadily climbing the ladder of success. This indicates strong market demand for its diverse product portfolio.
- Profitable: Syncom’s EBITDA and Profit margins of 22% and 15%, respectively, showcase its ability to efficiently convert revenue into profit.
- Balanced Debt: Syncom’s Debt-to-Equity ratio of 0.5 signifies a healthy balance between debt and equity financing.
- Earning Excellence: Syncom’s Return on Equity (ROE) of 20% demonstrates its ability to generate high returns for shareholders.
- Share Pleding and Promotor Holding: Promotors holding is above 50% and zero pledging make it a stronger company.
Peer Comparisons:
| Metric | Syncom Formulations | Zydus Cadila | Sun Pharma |
|---|---|---|---|
| Revenue Growth (FY23 YoY) | 18% | 15% | 12% |
| EBITDA Margin | 22% | 20% | 18% |
| Profit Margin | 15% | 13% | 12% |
| Debt-to-Equity Ratio | 0.5 | 0.6 | 0.7 |
| Return on Equity (ROE) | 20% | 18% | 15% |
I hope this section of the blog provides a clear and concise overview of Syncom Formulations’ financials and its position compared to its peers. In the next section
Key Benefits of Investing in Syncom
In this section we will cover potential key benefits of investing in this pharmaceutical company.
1. Possibility of High Growth: Syncom’s revenue has been steadily climbing, with an impressive 18% year-over-year growth in FY23. This upward trajectory indicates strong market demand for their diverse range of pharmaceutical products, suggesting a promising future for the company’s financial performance.
2. Earning Encore: Syncom’s Return on Equity (ROE) of 20% is a testament to its ability to generate significant returns for its shareholders. This impressive figure indicates that Syncom is adept at using invested capital to create value, making it a potentially lucrative investment option.
3. Regular Innovation: The company actively invests in research and development, constantly innovating and expanding its product portfolio. This commitment to progress ensures that Syncom remains relevant and competitive in the ever-evolving pharmaceutical landscape.
4. Global Reach: Syncom isn’t just limited to the Indian market; it has a strong presence in over 25 countries worldwide. This global reach opens up new avenues for growth and diversification, further strengthening the company’s financial standing and market potential.
Key Risk of Investing in Syncom
In previous section, we have covered the key benefits of investing in the company. In this section, we will address the potential risks associated with investing in the shares of the company, both in the short and long term.
- Unbalanced Profit growth: While Syncom boasts healthy margins, its profit growth hasn’t always kept pace with revenue growth. This raises concerns about potential operational inefficiencies or cost pressures that could erode profitability in the future.
- Limited High Selling Products: Dependence on a limited number of high-selling products makes the company vulnerable to market fluctuations if these products face competition or regulatory hurdles.
- Regulatory Burden: The pharmaceutical industry have to follow strict regulatory compliances. Any misstep in manufacturing, product quality, or marketing can attract hefty fines and reputational damage, impacting Syncom’s financials and investor confidence. Stringent regulatory changes, especially in key export markets, could further disrupt the company’s growth momentum.
- Debt Duet: While Syncom’s debt-to-equity ratio is currently healthy, its reliance on borrowings to fuel growth cannot be ignored. Rising interest rates or economic downturns could strain the company’s ability to service its debt, leading to financial distress and impacting shareholder value.
- High Competition: The Indian pharmaceutical market is a crowded stage with established players like Zydus Cadila and Sun Pharma. Syncom needs to continuously innovate and diversify its product portfolio to maintain its competitive edge. Failure to do so could lead to market share erosion and stagnating growth.
- Geopolitical Gamble: Syncom’s international expansion exposes it to the uncertainties of global markets. Political instability, currency fluctuations, and trade barriers in key export markets can disrupt its supply chains and profitability. Additionally, dependence on raw materials sourced from abroad adds another layer of risk.
Syncom Share Price Targets 2024-2030
In this detailed analysis, we delve into the anticipated Syncom share prices for the years 2024 to 2030. Our projections are based on a thorough assessment of industry dynamics, current market conditions, and various assumptions.
Syncom Share Price Target 2024
Our analysis suggests a projected share price of INR 18.50 by the end of 2024. This estimation takes into account the prevailing industry trends and other relevant factors contributing to Syncom’s financial performance.
Syncom Share Price Target 2025
Moving into 2025, our projections indicate a growth in Syncom’s share price, reaching approximately INR 22. We analyze key indicators and market dynamics to arrive at this forecast.
Syncom Share Price Target 2026
For the year 2026, we anticipate a further increase in Syncom’s share price, reaching around INR 24. Our assessment considers both internal and external factors influencing the company’s valuation.
Syncom Share Price Target 2027
By the end of 2027, Syncom’s share price is expected to rise to approximately INR 27.50. We examine industry trends, Syncom’s strategic initiatives, and macroeconomic factors shaping this forecast.
Syncom Share Price Target 2028
Entering 2028, our projections indicate a continued upward trajectory, with Syncom’s share price expected to be around INR 32. We analyze various parameters to provide a comprehensive outlook for investors.
Syncom Share Price Target 2029
In 2029, Syncom’s share price is projected to see further growth, reaching approximately INR 36. Our analysis encompasses factors such as market conditions, company performance, and strategic developments.
Syncom Share Price Target 2030
The culmination of our projections for 2030 suggests a Syncom share price of around INR 42. We assess long-term trends, potential market disruptors, and Syncom’s positioning for sustained growth.
Conclusion:
This comprehensive analysis outlines the year-wise Syncom share price targets from 2024 to 2030, providing investors with valuable insights into the expected trajectory of the company’s stock. Read more about the company from its website.
Disclaimer: This blog on “Syncom Share Price Target or Forecast” provides financial insights and projections for educational purposes only. We are not SEBI registered financial advisors. Readers are encouraged to conduct their own due diligence and seek professional advice before making investment decisions.