Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by robust demand and strategic initiatives.
Basis of our Recommendation
Syrma SGS Technology is poised for strong growth, driven by robust demand across key sectors such as automotive and healthcare, alongside strategic partnerships that enhance revenue quality. Despite facing some margin pressures, the company maintains a healthy order book and positive market sentiment, indicating a favorable outlook for the upcoming fiscal years.
Why We Like This Stock
- 58% YoY revenue increase in the latest quarter
- Strong demand in automotive and healthcare sectors
- Healthy order pipeline and strategic partnerships enhancing revenue quality
Things To Watch Out For
- Limited margin expansion due to cost pressures
- Challenges in the consumer electronics segment
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,154 | 3,787 | 4,819 | 6,293 | 8,064 |
| Profit Before Tax (Cr.) | 166 | 221 | 450 | 589 | 751 |
| PBT Margin | 5.3% | 5.8% | 9.3% | 9.4% | 9.3% |
| Net Profit (Cr.) | 124 | 168 | 346 | 418 | 534 |
| EPS | 5.6 | 7.9 | 16.5 | 21.7 | 27.7 |
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.