MoneyWorks4Me

Check Before You Invest : Synergy Green Industries Ltd

BSE: 541929 NSE: SGIL ISIN: INE00QT01015
  |   Sector:  Automobiles   |   Industry:  Castings/Forgings

Snapshot

Q.1 Which industry/sub-sector does Synergy Green Industries Ltd belong to?
Synergy Green Industries Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.
Q.2 Is Synergy Green Industries Ltd a good quality company?
Synergy Green Industries Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Synergy Green Industries Ltd undervalued or overvalued?
Synergy Green Industries Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 0-year
Historic Median
Price to Earnings 214.63 31.72
Price to Book 9.93 1.91
Price to Sales 2.73 2.98
EV to EBITDA 25.1 15.86
Q.4 Is Synergy Green Industries Ltd a good buy now?
Synergy Green Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

C: How much debt does the business have and is it at a sustainable level?

Q.1 Debt to Equity ratio of Synergy Green Industries Ltd?
Synergy Green Industries Ltd Debt-to-Equity ratio is 2.26, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Synergy Green Industries Ltd?
Synergy Green Industries Ltd Debt to cash flow from operations is 13, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Synergy Green Industries Ltd?

Q.1 Promoter shareholding and pledge status of Synergy Green Industries Ltd?
Promoters hold 69.50% of the Synergy Green Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Synergy Green Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Synergy Green Industries Ltd vs industry peers?
Synergy Green Industries Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) -23.7 18
Operating Profit Growth (%) -25 9.9
Net Profit Growth (%) -70.6 22.9
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 0.9 0.1
ROE (%) - 1.52
ROCE (%) - 4.02
Cash Conversion Cycle (days) 66.92 415

Valuation & price assessment

Q.1 Stock return of Synergy Green Industries Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 35.02% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 35% 45.7% 19.4%
Q.2 Valuation ratios of Synergy Green Industries Ltd vs historical?
The current P/E ratio of 214.63 is higher than its historical median of 31.72, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 214.63 31.72 -
Price to Book 9.93 1.91 -
Price to Sales 2.73 2.98 -
EV to EBITDA 25.1 15.86 -

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