Syrma SGS Technology
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Syrma SGS Technology is poised for significant growth, driven by management's aggressive targets and strategic initiatives. The company is focusing on expanding its high-margin ODM and export businesses, with a robust order book supporting a projected revenue growth of over 35% in the current fiscal year. Key developments include the commissioning of a new PCB manufacturing facility and a joint venture with Kaga Electronics, which are expected to enhance margins and market penetration. Despite facing supply chain challenges, management's proactive inventory management and strong liquidity position provide a buffer against potential disruptions. Vista's financial outlook reflects stable revenue growth and margins, supported by the company's strategic pivot towards higher-margin sectors and a favorable industry backdrop characterized by improving pricing power. The EMS sector's growth trajectory, bolstered by government incentives and a shift towards local manufacturing, further underpins Syrma's long-term prospects. Over the next 12-24 months, key opportunities include expanding into high-tech areas and capitalizing on the growing demand in automotive and healthcare sectors, while watchpoints include supply chain volatility and execution risks associated with new capacity ramp-ups
Why We Like This Stock
- Management's aggressive growth targets of over 35% for the current fiscal year, supported by a robust order book
- Strategic initiatives, including a new PCB manufacturing facility and a joint venture with Kaga Electronics, are expected to enhance margins and market share
- The EMS sector's favorable growth trajectory, driven by government incentives and a shift towards local manufacturing, supports Syrma's long-term outlook
Things To Watch Out For
- Supply chain challenges and increased working capital requirements may impact short-term operational efficiency
- Execution risks related to the ramp-up of new manufacturing capacities could pose challenges to achieving growth targets
- Intense competition in the EMS sector may pressure margins and market share in the near term
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,154 | 3,787 | 4,819 | 5,570 | 7,355 |
| Profit Before Tax (Cr.) | 166 | 221 | 450 | 658 | 773 |
| PBT Margin | 5.3% | 5.8% | 933.8% | 11.8% | 10.5% |
| Net Profit (Cr.) | 124 | 168 | 346 | 508 | 549 |
| Earnings Per Share | 5.6 | 7.9 | 16.5 | 24.3 | 28.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BOB Capital Markets | ► Hold | 1,020 | 13-May-2026 |
| HDFC Securities | ▲ Buy | 1,470 | 03-Aug-2026 |
| HSBC | ▲ Buy | 1,750 | 05-Aug-2026 |
| ICICI Securities | ▲ Buy | 1,240 | 13-May-2026 |
| Jeffries | ► Hold | 1,430 | 31-Jul-2026 |
| Moneycontrol | ► Equalweight | nan | 31-Jul-2026 |
| Motilal Oswal | ▲ Buy | 1,770 | 31-Jul-2026 |
| Prabhudas Liladhar | ► Hold | 1,409 | 31-Jul-2026 |
Company Overview
Show Company Profile
Syrma SGS Technology Limited provides turnkey electronic manufacturing services in India, the United States, Germany, and internationally. The company offers product engineering services, that includes design and development, and verification and validation; phototype manufacturing and platform/ system integration; and original design and manufacturing services. Its product portfolio comprises printed circuit board assemblies; box build, electromechanical assembly, and full-systems integration services, that includes firmware, software loading, validation, testing, and commercial or custom packing, as well as offers products, such as scanning antenna, transceiver, transponder, disk drives, memory modules, power supplies / adapters, fiber optic assemblies, magnetic induction coils and RFID products, and other electronic products, as well as line tester development services. In addition, the company provides custom magnetic services, including brushless DC motor module for fan consists of brushless DC motor, driver circuit, and control system; electro-mechanicals; critical communication solutions; RFID tags and inlays; and magnetic products comprising custom magnetic chokes, magnetic inductors, and magnetic transformers. It serves automotive, consumer, industrial, healthcare, railways, and IT industries. Syrma SGS Technology Limited was founded in 1978 and is based in Chennai, India.