Synergy Green Industries Limited

Industrials — Metal Fabrication · NSE

₹597.35−₹13.15 (−2.15%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Synergy Green Industries Limited engages in the manufacturing and sale of wind turbine casting and other large precision castings in India.

IndustryMetal Fabrication

SectorIndustrials

Employees252

Annual revenue₹360 Cr

How does it make money?

Turns over ₹360 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 252 employees supports ₹1.43 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.43 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA 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?Little sign of one

Returns on capital of 9.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +26% while net margin moved +326% 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+26%

Margin effect+326%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 4.2% is weak

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

20/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

25.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 8.4% to 12.9% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 14.5% to 9.5% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 229% over 3 years, from ₹73 Cr to ₹240 Cr.
🔴High leverageFinancial
Debt/Equity of 2.25x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 194% against revenue up 26% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.9x to 1.4x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹120 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.85 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.4% to 12.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The debt load needs earnings to hold up
Debt is 5.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 194% against revenue up 26%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹120 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 6% a year✓ 8.0% CAGR
Latest reported year was -10.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

3 / 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

0 good · 3 neutral · 8 weak

Market Cap

₹928 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

8.35x

Rich

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

EPS (TTM)

₹-5.69

Loss-making

Negative earnings per share — the business is losing money

ROE

4.2%

Weak

Weak capital efficiency

ROCE

9.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.25x

High

High leverage

Revenue Growth (YoY)

-10.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-72.4%

Falling

Profits are shrinking

Dividend Yield

0.17%

Modest

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

Free Cash Flow

-₹120 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-5.4%

Weak

Thin margins leave little room for error

Net Margin

-2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.85

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

621.7 / 600.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

34.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹286 Cr	₹322 Cr	₹355 Cr	₹360 Cr	+8.0%
EBITDA	₹24 Cr	₹41 Cr	₹51 Cr	₹46 Cr	+24.8%
EBITDA Margin	8.4%	12.7%	14.4%	12.9%	—
PAT (Net Profit)	₹1 Cr	₹12 Cr	₹17 Cr	₹5 Cr	+75.1%
EPS	₹0.6	₹7.7	₹11.14	₹3	+71.5%
ROE	2.5%	24.8%	15.7%	4.2%	—
ROCE	14.5%	33.6%	22.7%	9.5%	—
Total Debt	₹73 Cr	₹69 Cr	₹145 Cr	₹240 Cr	+48.7%
Free Cash Flow	₹15 Cr	₹18 Cr	-₹104 Cr	-₹120 Cr	—

🟢 Revenue has grown at 8.0% a year over 3 years.

🟢 EBITDA has grown at 24.8% a year over 3 years.

🟢 EBITDA Margin has risen from 8.4% to 12.9% over 3 years (+4.5 pts).

🟢 PAT (Net Profit) has grown at 75.1% a year over 3 years.

🟢 EPS has grown at 71.5% a year over 3 years.

🟢 ROE has risen from 2.5% to 4.2% over 3 years (+1.7 pts).

🔴 ROCE has fallen from 14.5% to 9.5% over 3 years (-4.9 pts).

🔴 Total Debt has grown at 48.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹15 Cr to -₹120 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹473 Cr

Total Liabilities

₹362 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹19 Cr

Capex

-₹139 Cr

Shareholding (proxy)

Institutional Holding

1.7%

Insider Holding

73.0%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

17 Sept 2025

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

6 general

Synergy Green Industries vs Nifty 50 Returns: +14.62% vs -10.93%

Univest, 12 Oct

Synergy Green Industries Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

SGIL Stock Price and Chart — NSE:SGIL

TradingView, 29 Aug

Solidarity Advisors increases stake in Synergy Green Industries to 10.01%

scanx.trade, 01 Jun

Country Condos Ltd leads losers in 'B' group

Business Standard, 17 Jul

Synergy Green Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Watch Items

Revenue growth is negative (-10.1%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

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