Commercial Syn Bags Limited

Consumer Cyclical — Packaging & Containers · NSE

₹250.70−₹0.35 (−0.14%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Commercial Syn Bags Limited, together with its subsidiary, Comsyn India Private Limited, engages in the manufacturing and exporting of various packaging solutions in India and internationally.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees2,684

Annual revenue₹387 Cr

How does it make money?

Turns over ₹387 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 2,684 employees supports ₹14.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹14.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +33% while net margin moved +144% 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+33%

Margin effect+144%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

• P/E of 35.0x already prices in growth
• P/E is close to its own historical median of 37.1x
✗ P/B of 5.63x is a steep premium to book

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

60/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.0x

3Y Median

37.1x

35 monthly readings · mean 40.0x · range 30.3x–68.2x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 37.1x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 49% below the peer median of 69.2x.

vs. its own history

Fair

37.1x median over 35 months · -6%

vs. sector peers

Cheap

69.2x median of 4 peers · -49%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

24.2x

PEG

0.73

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 8.9% to 12.6% over 3 years.
Return on equity is rising
ROE has improved from 6.7% to 14.8%.
Return on capital is rising
ROCE has improved from 9.1% to 17.8%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 70% over 3 years, from ₹76 Cr to ₹129 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 136% against revenue up 33% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.9% to 12.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 49% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 136% against revenue up 33%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
3 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 8% a year✓ 10.1% CAGR
Latest reported year was 20.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 15%✓ 17.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 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
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹1,052 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.0x

Fair

Fairly valued against the generic band

P/B Ratio

5.63x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹7.16

Profitable

Profitable on a per-share basis

ROE

14.8%

Moderate

Moderate capital efficiency

ROCE

17.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.72x

Moderate

Moderate leverage

Revenue Growth (YoY)

20.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

61.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.20%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

11.6%

Average

Average margins

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

1.27

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.14

Defensive

Steadier than the market

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

272.1 / 279.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

26.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹290 Cr	₹288 Cr	₹348 Cr	₹387 Cr	+10.1%
EBITDA	₹26 Cr	₹28 Cr	₹40 Cr	₹49 Cr	+23.6%
EBITDA Margin	8.9%	9.8%	11.5%	12.6%	—
PAT (Net Profit)	₹8 Cr	₹8 Cr	₹17 Cr	₹26 Cr	+48.2%
EPS	₹2.08	₹1.97	₹4.29	₹6.27	+44.5%
ROE	6.7%	6.1%	11.4%	14.8%	—
ROCE	9.1%	10.7%	16.2%	17.8%	—
Total Debt	₹76 Cr	₹109 Cr	₹115 Cr	₹129 Cr	+19.4%
Free Cash Flow	-₹5 Cr	-₹6 Cr	-₹8 Cr	-₹3 Cr	—

🟢 Revenue has grown at 10.1% a year over 3 years.

🟢 EBITDA has grown at 23.6% a year over 3 years.

🟢 EBITDA Margin has risen from 8.9% to 12.6% over 3 years (+3.7 pts).

🟢 PAT (Net Profit) has grown at 48.2% a year over 3 years.

🟢 EPS has grown at 44.5% a year over 3 years.

🟢 ROE has risen from 6.7% to 14.8% over 3 years (+8.1 pts).

🟢 ROCE has risen from 9.1% to 17.8% over 3 years (+8.7 pts).

🔴 Total Debt has grown at 19.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹358 Cr

Total Liabilities

₹181 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹39 Cr

Capex

-₹42 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.5%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive2 mixed3 general

Commercial Syn Bags | Stock Share Price Live

MarketSmith India, 10 Aug

Commercial Syn Bags Ltd. (COMSYN) Share Price Rises 14.85% Today

Univest, 29 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Commercial Syn Bags Ltd leads gainers in 'B' group

Business Standard, 10 Aug

Commercial Syn Bags declares ₹0.50 per share final dividend for FY26

scanx.trade, 29 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Commercial Syn Bags Q1 Results Drive 15% Stock Rise

Kalkine India, 10 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Commercial Syn Bags Ltd. (COMSYN) Share Price Near 52-Week High as Stock Trades at Rs 310

Univest, 22 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Growth

MiddlingFinancial Health · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑