Synergy Green Industries Reports Strong Q2 Growth Amid Debt Challenges
Synergy Green Industries has recently adjusted its evaluation, reflecting strong financial performance in Q2 FY24-25, with a 28.32% increase in net sales and a 137.66% rise in operating profit. The company has shown consistent positive results over seven quarters, though it faces challenges related to debt levels and profitability.
Synergy Green Industries, a microcap player in the castings and forgings industry, has recently undergone an evaluation adjustment reflecting its current market position and performance indicators. The company has reported positive financial outcomes for the second quarter of FY24-25, showcasing a notable annual growth rate in net sales of 28.32% and an impressive operating profit increase of 137.66%. Over the past seven consecutive quarters, Synergy Green has consistently delivered positive results, with operating cash flow reaching a peak of Rs 37.69 crore and a robust operating profit to interest ratio of 3.51 times. The latest net sales figure stands at Rs 88.91 crore, indicating strong operational performance.
Despite these positive metrics, the company faces challenges, including a high debt to EBITDA ratio of 2.18 times, which suggests a limited capacity to service its debt obligations. Additionally, the return on equity averages 15.50%, reflecting a moderate level of profitability relative to shareholders' funds.
Overall, while Synergy Green Industries demonstrates a favorable valuation with a return on capital employed of 19.9 and a PEG ratio of 1.2, the stock's technical indicators remain in a mildly bullish range.
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