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Check Before You Invest : Sathlokhar Synergys E&C Global Ltd

BSE: 0 NSE: SSEGL ISIN: INE0RFP01011
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Sathlokhar Synergys E&C Global Ltd belong to?
Sathlokhar Synergys E&C Global Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Sathlokhar Synergys E&C Global Ltd a good quality company?
Sathlokhar Synergys E&C Global 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 Sathlokhar Synergys E&C Global Ltd undervalued or overvalued?
Sathlokhar Synergys E&C Global Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 3-year
Historic Median
Price to Earnings 22.4 27.59
Price to Book 4.94 7.03
Price to Sales 2.4 2.96
EV to EBITDA 15.47 19.39
Q.4 Is Sathlokhar Synergys E&C Global Ltd a good buy now?
Sathlokhar Synergys E&C Global Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Sathlokhar Synergys E&C Global Ltd?
Sathlokhar Synergys E&C Global Ltd revenue growth is 61.7% for FY-2025, which is below its 3-year CAGR of 89.71%, indicating slower growth.

Q.2 Gross Profit margin of Sathlokhar Synergys E&C Global Ltd?
Sathlokhar Synergys E&C Global Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.5% for FY-2025, which is in line with its 3-year median of 14.3%, indicating stable margins.

Q.3 Operating Profit Margin of Sathlokhar Synergys E&C Global Ltd?
Sathlokhar Synergys E&C Global Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.39% for FY-2025, which is in line with its 3-year median of 14.39% indicating stable margins.

Q.4 Net Profit Margin of Sathlokhar Synergys E&C Global Ltd?
Sathlokhar Synergys E&C Global Ltd Net Profit Margin is 10.71% for FY-2025, is in line with its 3-year median of 10.58%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 14.5 14.3
Operating Profit Margin (%) 14.39 14.39
Net Profit Margin (%) 10.71 10.58

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sathlokhar Synergys E&C Global Ltd?
Sathlokhar Synergys E&C Global Ltd Return on Asset is 23.16%, which is in line with its 3-year historical median of 23.16%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sathlokhar Synergys E&C Global Ltd?
Sathlokhar Synergys E&C Global Ltd Return on capital employed is 53.42% for FY-2025, which is in line with its 3-year historical median of 53.42%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Sathlokhar Synergys E&C Global Ltd?
Sathlokhar Synergys E&C Global Ltd Return on equity is 40.16% for FY-2025, which is below its 3-year historical median of 47.08%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sathlokhar Synergys E&C Global Ltd?
Sathlokhar Synergys E&C Global Ltd Cash conversion cycle is 70 days, in line with its 3-year historical median of 70 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 2.16 2.16
ROE (%) 40.16 47.08
ROCE (%) 53.42 53.42
Cash Conversion Cycle 70 days 70 days

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

Q.9 Debt to Equity ratio of Sathlokhar Synergys E&C Global Ltd?
Sathlokhar Synergys E&C Global Ltd Debt-to-Equity ratio is 0.05, which is lower the industry average of 0.38, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sathlokhar Synergys E&C Global Ltd?
Sathlokhar Synergys E&C Global Ltd Debt to cash flow from operations is -0.1, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sathlokhar Synergys E&C Global Ltd?

Q.1 Promoter shareholding and pledge status of Sathlokhar Synergys E&C Global Ltd?
Promoters hold 58.27% of the Sathlokhar Synergys E&C Global Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sathlokhar Synergys E&C Global Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sathlokhar Synergys E&C Global Ltd vs industry peers?
Sathlokhar Synergys E&C Global Ltd revenue CAGR is 89.71%, compared to the industry median CAGR of 15.97%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 61.7 16
Gross Profit Growth (%) 65.7 40.5
Operating Profit Growth (%) 58.3 34.4
Net Profit Growth (%) 65.4 54.4
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 2.16 0.83
ROE (%) 40.16 11.59
ROCE (%) 53.42 14.23
Cash Conversion Cycle (days) 70.49 53

Valuation & price assessment

Q.1 Stock return of Sathlokhar Synergys E&C Global Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -10.33% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -10.3%
Q.2 Valuation ratios of Sathlokhar Synergys E&C Global Ltd vs historical?
The current P/E ratio of 22.4 is lower than its historical median of 27.59, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 22.4 27.59 22.41
Price to Book 4.94 7.03 1.92
Price to Sales 2.4 2.96 1.65
EV to EBITDA 15.47 19.39 12.04

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