1. At a Glance
Synergy Green Industries (SGIL) casts the future — literally. Specializing in high-performance SG and CI castings, especially for wind turbine giants, it’s a foundry company with a green twist. From Adani orders to 48x P/E, this one’s spinning fast. Question is: can it hold ground?
2. Introduction with Hook
If your factory is the heart, Synergy Green is the skeleton. You won’t notice it, but without it, the whole structure falls flat.
- FY25 Revenue: ₹362 Cr
- FY25 PAT: ₹17 Cr
- 5-year PAT CAGR: 39%
- Orders from Adani Wind? Yes. Dividends? Nope.
This isn’t your average foundry — it’s trying to be the Tesla of castings. Only with more molten iron and less fanfare.
3. Business Model (WTF Do They Even Do?)
Synergy Green makes castings. But not for kettles or old-school pipes. Think super-heavy, high-precision iron castings for wind turbine hubs, rotors, housings, and generator components.
Core Markets:
- Wind energy (biggest)
- Heavy engineering
- General industrial OEMs
It’s part of the Shirgaokar Brothers Group, and holds a tech-heavy product portfolio focused on precision and green energy.
Revenue is order-driven, B2B, and lumpy — i.e., no steady monthly PayTMs, just massive one-time turbine orders.
4. Financials Overview
| FY | Sales (₹ Cr) | EBITDA | PAT | EPS (₹) | OPM % |
|---|---|---|---|---|---|
| 2021 | ₹199 | ₹24 | ₹3 | ₹2.05 | 12% |
| 2022 | ₹284 | ₹24 | ₹1 | ₹0.92 | 8% |
| 2023 | ₹290 | ₹26 | ₹1 | ₹0.56 | 9% |
| 2024 | ₹326 | ₹39 | ₹12 | ₹7.46 | 12% |
| 2025 | ₹362 | ₹52 | ₹17 | ₹10.87 | 14% |
Improving steadily, but this isn’t a margin monster. PAT margin ~4.6%. Still, after years of foundry sweat, FY25 is their breakout year.
5. Valuation
- P/E: 48x
- EPS FY25: ₹10.87
- CMP: ₹521
- Fair Value Range (P/E 25–35): ₹270–₹380
Price has already flown with the wind. Further upside depends on… well, wind energy demand actually converting to cash.
6. What’s Cooking – News, Triggers, Drama
- 🔥 Adani Wind Order worth ₹5.37 Cr for 3.3 MW parts, doubling FY26 order book to ₹40 Cr
- 🔧 Investment in CWIP: ₹34 Cr – potential capacity ramp-up
- ⛔ Promoter holding dipped by 4.27% last quarter. Hmm.
- 🌀 Margins rising quarter-on-quarter — best-ever OPM of 15.3% in Mar ’25
- 📉 Operating cash flows turned negative in FY25 (-₹16 Cr). Uh-oh.
It’s like they’re winning orders faster than they can build furnaces.
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹14 | ₹14 | ₹16 |
| Reserves | ₹21 | ₹33 | ₹92 |
| Borrowings | ₹84 | ₹80 | ₹156 |
| Fixed Assets | ₹69 | ₹79 | ₹100 |
| CWIP | ₹11 | ₹9 | ₹34 |
| Total Assets | ₹182 | ₹198 | ₹342 |
Borrowings nearly doubled. Capex clearly in progress. But whether this translates into long-term topline remains to be seen.
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | ₹26 | ₹38 | -₹16 |
| CFI | -₹14 | -₹19 | -₹87 |
| CFF | -₹12 | -₹15 | ₹101 |
| Net Cash Flow | ₹0 | ₹4 | -₹2 |
Negative operating cash in FY25 — despite rising profits. Classic case of receivables ballooning while orders flow in. Hope they have tough credit terms.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 12% | 24% | 21% |
| ROE (%) | 13% | 22% | 22% |
| Debtor Days | 28 | 38 | 57 |
| CCC (days) | 61 | 45 | 41 |
| Inventory Days | 186 | 154 | 136 |
| P/E | 48x | ||
| P/B | 7.53 |
Debtors stretching. But credit cycle is improving. ROE’s impressive, especially with low dividend payout. Still — valuation ain’t leaving any meat on the casting.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA | PAT | EPS |
|---|---|---|---|---|
| FY23 | ₹290 | ₹26 | ₹1 | ₹0.56 |
| FY24 | ₹326 | ₹39 | ₹12 | ₹7.46 |
| FY25 | ₹362 | ₹52 | ₹17 | ₹10.87 |
FY24 was liftoff. FY25 confirmed it wasn’t a fluke. Now, FY26 depends on executing Adani’s and other turbine orders without melting down.
11. Peer Comparison
| Company | CMP | P/E | ROE | OPM % | Sales (Cr) | PAT (Cr) |
|---|---|---|---|---|---|---|
| AIA Engineering | ₹3,349 | 29.8 | 15.6% | 26.8% | ₹4,287 | ₹1,060 |
| Steelcast | ₹1,170 | 32.9 | 24.2% | 28.2% | ₹376 | ₹72 |
| Happy Forgings | ₹923 | 32.5 | 15.5% | 28.8% | ₹1,408 | ₹267 |
| Amic Forging | ₹1,636 | 51.9 | 37.6% | 23.1% | ₹121 | ₹35 |
| Synergy Green | ₹521 | 48.1 | 21.9% | 14.4% | ₹362 | ₹17 |
Synergy has the valuation of a rockstar and the margins of a struggling indie band. A re-rating risk or a future breakout?
12. Miscellaneous – Shareholding, Promoters
| Date | Promoters | FIIs | DIIs | Public |
|---|---|---|---|---|
| Mar ’24 | 74.02% | 2.6% | 0.76% | 22.61% |
| Mar ’25 | 69.81% | 0.21% | 0% | 29.96% |
- Promoters sold 4.2% stake — to whom?
- FIIs ran for the hills (2.6% to 0.21%)
- Retail soaking it up, possibly without realizing how cyclical this is.
Retail investing in casting cos with 48x P/E? We’re in peak bull cycle, folks.
13. EduInvesting Verdict™
Synergy Green is where old-school metallurgy meets modern ESG narrative. It’s riding the wind energy megatrend and expanding capacity to catch more breeze. But let’s be honest — it’s priced like an IT startup, not a foundry.
Until margins move closer to 20% and order books exceed ₹100 Cr consistently, this is less a long-term compounder and more a cyclical rocket.
Great company. Wind-powered story. But valuation needs to cool before it becomes truly investible.
Metadata
– Written by EduInvesting Team | 15 July 2025
– Tags: Synergy Green, Wind Energy, Castings Stock, Foundry Business, Adani Wind, Renewable Manufacturing India, Green Industrial Stocks
