Syncom Formulations - Rs.49.00

Established in 1988, Syncom Formulations India Ltd. (SFIL) is one of the fastest growing pharmaceutical companies offering more than 250 products in various dosage forms including tablets, capsules, dry syrups, ointments/creams, dry powders, injections and ampoules. In the branded allopathic and OTC segment, SFIL owns some well-known brands including Qudermis, Syncal, Aciril, Fastac, Nutone, Profeed, Ceftacom etc. Besides allopathic drugs, the company has also taken efforts to bring to mankind the goodness of ‘Ayurveda’, the traditional Indian Medicinal Science through its unique range of herbal products used for various therapeutic and prophylactic purposes. Saloni, Edicare, Ecziguard, Pylgel, Attom, Shilajit, Livoset, Candid, Fastac, Colo are some of its successful herbal brands.

SFIL’s ultra-modern state-of-the-art formulation unit is situated at Pithampur, District Dhar in Madhya Pradesh. Being a WHO - GMP certified facility, it is equipped with the latest machineries and all production activities follow high quality standards of Good Manufacturing Practice (GMP). Presently, SFIL is exports to more than 35 countries worldwide but mainly to Asia, Africa, CIS, Russia and Latin American countries. To explore huge potential, it has made an aggressive entry into branded herbal markets of South Africa and Europe. It has also entered into long-term sales contracts with its distributors in Vietnam, Cambodia, Philippines and Nigeria and is finalizing few distributors in Kenya, Uganda, Sudan, Russia, Ukraine, Moldova and the Domino Republic. SFIL also offers comprehensive contract manufacturing services including pilot plants, technical services, quality control and regulatory services for both domestic as well as foreign companies. It is also negotiating with a Latin American company for contract manufacturing of their brands.

To take advantage of the burgeoning contract manufacturing activities, SFIL is making substantial investment in a new export-oriented unit in the Special Economic Zone (SEZ) at Pithampur near Indore. Apart from contract manufacturing, the company has prepared a blueprint to tap the virgin markets of West Africa by concentrating on in-licensing arrangements with various international players. It is also in the process of expanding its manufacturing and godown capacity with a capex plan of around Rs.5 cr. Due to huge tax incentives, it is installing two Wind Mills of 0.60 MW each at Sangli, Maharashtra with a total capital investment about Rs.7 cr. and has entered into an agreement with the MSEB for power purchase by them. In the last fiscal, the company raised more than Rs.5 cr. through preferential issue of shares around Rs.100 per share. Further it is planning to raise Rs.1.60 cr. by making preferential allotment at Rs.54 per share. For FY07, it is expected to clock a turnover of Rs.55 cr. with NP of Rs.7 cr. which leads to an EPS of Rs.12 on its fully-diluted equity of Rs.5.92 cr. Investors are advised to buy at CMP as the scrip has the potential to touch Rs.65 in the short term and Rs.90 in 12-15 months.