Accord Synergy Limited

Sector n/a · NSE

₹28.80−₹1.45 (−4.79%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

The 60-second version of Accord Synergy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹37 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹-1110 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 384.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +83% while net margin moved +145% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+83%

Margin effect+145%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

60/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

—/ 100

Unknown

What you are being asked to pay, ignoring how good the business is.

Not enough data to separate business quality from valuation for this company.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 2.1% to 9.0%.
Return on capital is rising
ROCE has improved from 2.0% to 384.5%.
High return on capital employed
ROCE of 384.5% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 4.75x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 1112.5 points, from 2.7% to -1109.7%.
🔴Inventory building faster than salesFinancial
Inventory up 268% against revenue up 83% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 384.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 2.7% to -1109.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.75x. Interest is payable whether or not the business has a good year.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 17% a year✓ 22.3% CAGR
Latest reported year was 34.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1112%✓ -1109.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 382%✓ 384.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹10 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

384.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.75x

High

High leverage

Revenue Growth (YoY)

34.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

204.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

-57558.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

5.27

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

188.4 / 192.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹32 Cr	₹27 Cr	₹37 Cr	+22.3%
EBITDA	₹1 Cr	₹1 Cr	-₹167 Cr	-₹409 Cr	—
EBITDA Margin	2.7%	2.0%	-610.4%	-1109.7%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹1 Cr	₹1 Cr	+64.8%
EPS	₹0.86	₹1.13	₹-3.67	—	—
ROE	2.1%	2.7%	-9.4%	9.0%	—
ROCE	2.0%	2.4%	62.4%	384.5%	—
Total Debt	—	—	₹1 Cr	₹1 Cr	—
Free Cash Flow	-₹4 Cr	₹0 Cr	-₹2 Cr	-₹0 Cr	—

🟢 Revenue has grown at 22.3% a year over 3 years.

🔴 EBITDA has turned negative, from ₹1 Cr to -₹409 Cr.

🔴 EBITDA Margin has fallen from 2.7% to -1109.7% over 3 years (-1112.5 pts).

🟢 PAT (Net Profit) has grown at 64.8% a year over 3 years.

🟢 ROE has risen from 2.1% to 9.0% over 3 years (+6.9 pts).

🟢 ROCE has risen from 2.0% to 384.5% over 3 years (+382.6 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19 Cr

Total Liabilities

₹4 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Recent News

1 mixed5 general

Accord Synergy Ltd

Equitypandit, 03 Apr

Accord Synergy allots 4 lakh shares to Dr. Faruk Patel

scanx.trade, 10 Jun

Accord Synergy Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 04 Sept

Accord Synergy approves preferential issue of equity shares

scanx.trade, 03 JunFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Ruchi Infrastructure (BSE:509020) - Stock Analysis

Simply Wall Street, 10 Sept

SJP ULTRASONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 08 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Profitability · Valuation

WeakFinancial Health · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑