Last Updated: Monday, January 16, 2017

[Update] Is Syncom Formulations really a Multibagger Stock?


About Syncom Formulations Ltd

Syncom Formula Limited a Mumbai based company is well established name in the Pharmaceuticals sector. The current market capitalisation of the company stands at Rs 251.37 crore. Syncom Formulations (India) Ltd was originally incorporated as Syncom Formulations (India) Private Limited in the state of Maharashtra on June 21, 1988 under the Companies Act, 1956. Further the status of company was changed to public limited company and thereby name of company changed to "Syncom Formulations (India) Limited" and a fresh certificate of change of name obtained on July 9, 1992. For more detail check company Profile at

Read also; Top 10 Stocks to Invest having Strong fundamentals

Product range of the company includes:

  • Tablets
  • Capsules
  • Liquid Orals
  • Vials
  • Eye / Ear Drops
  • Ampoules
  • Dry Powder Orals

Herbal Branded

    • Colo Vaporex 
    • Colo Inhaler
    • Colo Mouth Gel
    • Fastac Ointment
    • Candid Balm
    • Saloni Cream
    • Borosyn Cream
    • Edicare Cream
    • Ecziguard Cream
    • Pyl Gel
    • Attom Cream
    • Attom Megacaps
    • Shilajit Capsules
    • Liovset Tonic
    • Colo Cough Syrup
    • Pudin Rahat
    • Syncom Gripe Water
    • Feelax Powder
    • Yas Antacid Salt
Read also: Latest list of Top 15 Quality Stocks Trading at Low P/E - Nov 2016

    Key Ratios;

  • MARKET CAP (RS CR): 251.37
  • P/E: 24.77
  • INDUSTRY P/E: 37.00
  • BOOK VALUE (RS): 1.28
  • DIV (%): 2.00%
  • EPS (TTM): 0.13
  • P/C: 17.89
  • PRICE/BOOK: 2.52
  • DIV YIELD.(%): 0.62%
  • FACE VALUE (RS): 1.00

Is Syncom Formulation (India) Ltd an undervalued Multibagger Stock for Long term investment in 2017?

Key Highlights
  • Syncom Formulations India Limited is almost 'Debt Free Company' manufacturing multiple generic drugs having great movement. 
  • Syncom Formulations is trading at an undervalued PE of 24.77 compared to the industry PE of 37.00 (Source: moneycontrol
  • This is a dividend paying company. The company has been paying dividends consistently year after year which are a positive sign. 
  • It has its business across the world in around 23 countries. 
  • Promoter's holding is decent around 62.88%, no pledging. 
  • The compounded profit growth over last three years is 43.21% which is very good, during the same period sales have grown by 13.65%. 
  • Syncom Formulations now a days trading with very huge volume, its average daily volume is around 3-4 Millions and therefore, liquidity is not an issue in this stock. 
  • Syncom Formulations India Limited is virtually debt free company. 
  • Technically the stock is trading near the multiple support of 2.95. Thus, the risk reward ratio seems to be very attractive in this counter


  • Syncom Formulations is 'Penny Stock' and investing in penny stocks is said to be riskier policy. 
  • In last one year it has lost its market value almost by 53%.
  • The promoters of the company are constantly reducing their stake from 62.88% to 53% in Dec, 2015 and now its only 48.22% as per March 2016 data. Find it on BSE.[Update]

My Take;

As for the Syncom formulation, it is the pharmaceutical industry and your query regarding it being a 'Multibagger Stock' seems to be a real one because we have a number of penny stocks specially from pharmaceutical sector that have given multifold return in the past to its shareholders. We saw Marksan Pharma and Lupin as a multibagger. It is therefore indispensable to see the market development of these stocks over a number of years;

Marksan Pharma: Headquartered in Mumbai, India, 'Marksans Pharma' is actively involved in R & D and provides CRAMS to international pharmaceutical companies. The shares of Marksan Pharma were traded at 71 paise per share on 7th March 2003 (even less than one rupee) and 114.15 on 19 August 2015. It turned out that this is a '100 bagger stock'.

Lupin: 'Lupin Limited' is a transnational pharmaceutical company based in Mumbai. It is the seventh-largest company after market capitalization; And the 10th largest generic pharmaceutical company by revenue on a global scale. The share of 'Lupin' traded on March 21, 2001, at 80 Paise per share (yes, it was too at less than a rupee) and achieved a high Rs. 2127 on October 1, 2015. Hence it turned to a 1000 Bagger Stock!

Syncom Formulations and Multibagger Expectation

Syncom Formulations (India) Ltd despite being a penny stock witnessing sound fundamental but its ROE is still poor; if it posts good numbers for few quarters, it may be a 'Multibagger Stock'; at the same time getting into such stocks is not suggested by the experts. With PE of 25, valuation wise it is not much attractive stock. So as a rule of thumb one should better forget about "multibagger" gains and focus on steady and reasonable valuations stocks. Most of the investors/traders are of the opinion; when there are so many fundamentally good shares/stocks why go for small and penny stocks with poor growth background? However at Current Market Price (CMP) risk reward ratio makes it good for risk-appetite investor. 
Also read; Top 10 Stocks having Secular Growth Stories - 2017

Syncom Formulations has today published its Q3 result on Feb 13, 2016; The result is almost inline nothing to worried about.

1. Standalone Financial Results for the period ended December 31, 2015
2. Standalone Limited Review for the period ended December 31, 2015

Find a pdf copy now click here>>>
*Source: BSE
Hope above post helped you; don't forget to leave comment below.

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Comment and Criticism Welcome


  1. yeah, your analysis is sound,
    My take is "Surely it is 1000x baggar but with long term view of 5 years from now.

    best Policy to invest in such a stock is:
    Invest in a Systematic Way.
    Only 1000 per month
    In my opinion you will always remain in average profit.

  2. Thanks Imtiyaz Bhai!
    No one can say whether Syncom Formulation will be a 100 bagger or 1000 bagger stock yet we can do our best to identify a hidden gem.

    My opinion on current post is not to give any aggressive target nor I am a sebi certified advisor and this post is for purely educational purposes, please read disclaimer before reacting on the post.

    However, we have witnessed lots of small cap pharmaceutical companies in the past trading as penny stock then and now turned into large cap, so nobody knows if Syncom formulation becomes a new multibagger. All we can do is to study every updates of the company and to act accordingly. At the same time I am agree with you that the best policy to invest in such stock is systematic investment...
    Thanks again and be in touch.

  3. This is just an operating script....I am following this company since past one and half years and even though the company is debt free and regular dividend paying company, the share price of the company is not reflecting its true nature....Be aware and cautious before investing....I am not saying it will not hit but may take a long period...

  4. In my opinion, Syncom Formulations can see dizzy heights in the future. One major positive for this company is that Mr. Vivek Burman (Dabur Related) is continuously increasing its stake in the company. The daily volume on BSE for thjis share is on an average of 1 million (10 lacs) shares every day. It seems that cornering is taking place in the share and once the accumulation is over it will start its upward journey.
    Similar was the case with Shiva Cements which I have been tracking since 2013 and I had entered the same at that price. The price was hovering around 2 - 4 for almost 3 years. I was confident of the company since ACC was having a stake in the company and today it is quoting at Rs.19.15 on BSE. With JSW taking the controlling stake in the company the fortuen for the company has undergone a radical change. It has already proved 5 bagger in last 1 year period and still will be a multibagger from hereon also.
    I think Syncom Formulation can repeat the same story.

    1. Hi Priti
      Thanks for your valuable inputs. Let's hope for the best.