Synoptics Technologies Limited

Sector n/a · NSE

₹104.30−₹3.60 (−3.34%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

The 60-second version of Synoptics Technologies 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 ₹57 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation.

EBITDA margin19.1%

Net margin7.2%

What is its competitive advantage?Little sign of one

Returns on capital of 8.9% 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.

ROCE8.9%

ROE5.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +12% while net margin moved -45% 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+12%

Margin effect-45%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.7% — barely ahead of inflation
✗ Profit has declined at 14.9% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

47/ 100

Average

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.

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

P/E (Trailing)

—

P/B

—

EV/EBITDA

11.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 30.5% to 19.1% over 3 years.
Debt is rising
Total debt is up 51% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 26.1% to 5.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.7% to 8.9% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 51% over 3 years, from ₹22 Cr to ₹33 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 11.4 points, from 30.5% to 19.1%.
🟡Profit is decliningFinancial
Net profit is down 38% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹3 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 30.5% to 19.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 3.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 26.1% to 5.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.

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

1EBITDA margin holds above 17%✓ 19.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 3.7% CAGR
Latest reported year was 31.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 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 · 7 neutral · 1 weak

Market Cap

₹88 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

5.5%

Weak

Weak capital efficiency

ROCE

8.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.45x

Low

Conservative leverage

Revenue Growth (YoY)

31.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1.3%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹104.3

Gross Margin

27.0%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

7.2%

Average

Average bottom-line conversion

Current Ratio

1.97

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

48.7 / 54.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

72.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹51 Cr	₹43 Cr	₹43 Cr	₹57 Cr	+3.7%
EBITDA	₹16 Cr	₹14 Cr	₹11 Cr	₹11 Cr	-11.3%
EBITDA Margin	30.5%	32.1%	26.2%	19.1%	—
PAT (Net Profit)	₹7 Cr	₹6 Cr	₹4 Cr	₹4 Cr	-14.9%
EPS	₹7.82	₹7.08	—	—	—
ROE	26.1%	9.1%	5.8%	5.5%	—
ROCE	30.7%	14.3%	10.2%	8.9%	—
Total Debt	₹22 Cr	₹20 Cr	₹34 Cr	₹33 Cr	+14.8%
Free Cash Flow	-₹4 Cr	-₹29 Cr	-₹12 Cr	₹3 Cr	—

🟢 Revenue has grown at 3.7% a year over 3 years.

🔴 EBITDA has shrunk at 11.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 30.5% to 19.1% over 3 years (-11.4 pts).

🔴 PAT (Net Profit) has shrunk at 14.9% a year over 3 years.

🔴 ROE has fallen from 26.1% to 5.5% over 3 years (-20.6 pts).

🔴 ROCE has fallen from 30.7% to 8.9% over 3 years (-21.8 pts).

🔴 Total Debt has grown at 14.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹121 Cr

Total Liabilities

₹47 Cr

Total Debt

₹33 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹6 Cr

Recent News

6 general

Synoptics Technologies (NSEI:SYNOPTICS) - Stock Analysis

Simply Wall Street, 16 Oct

Synoptics Technologies SME IPO: Stock hits 5% lower circuit after listing flat on NSE SME

Livemint, 13 Jul

Sebi confirms market ban on Synoptics Tech, promoters for IPO fund diversion

The Economic Times, 03 Oct

SYNOPTICS TECHNOLOGIES L Share Price

Upstox, 25 Mar

Synoptics Technologies IPO: GMP, subscription status on Day 4 and other issue details you need to know

Livemint, 05 Jul

Sebi bans Synoptics Tech, promoters from securities market for IPO fund diversion

The Economic Times, 06 May

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

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong16.3/20

🔴GrowthWeak5.7/20

🔴ProfitabilityWeak5.8/15

🟡ValuationFair7.5/15

🟡RiskModerate5/10

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. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 17%19.1%
✗Debt / EBITDA falls below 3x3.0x
✓Interest cover stays above 3x3.3x
✗Revenue growth stays above 4% a year3.7% CAGR
✓Free cash flow remains positive₹3 Cr