Fundamental View
Syrma SGS Technology Ltd (Syrma SGS), incorporated in 2005, is a technology-focused engineering & design–led Electronics Manufacturing Services (EMS) player with diversified exposure across consumer, automotive, industrials, healthcare, IT & railways, and an expanding defence/ Original Design Manufacturer (ODM) footprint via acquisitions. The company operates 14 manufacturing facilities with four R&D centres, serves 270+ clients across >25 countries, and is augmenting backward integration through a greenfield bare-PCB program.
• Syrma delivered a strong Q3FY26, driven by broad-based growth, favorable mix, and operating leverage. Revenue rose 45% YoY, supported by robust performance across segments.
• Exports grew 66% YoY in Q3FY26. EBITDA margin expanded 350 bps to 12.6%, driven by higher exports, increased ODM contribution, and efficiency gains. PAT surged 108% YoY to ₹110 cr.
• Management expects Q4FY26 revenue to exceed ₹1,600cr, taking FY26 revenue to ~₹5,000 cr. For FY27, the company is targeting ~30% growth in both revenue and EBITDA, supported by ~10% blended margins. Export revenues are projected at ~₹1,100cr.
• The company’s long-term outlook remains strong, underpinned by its focus on low-volume, high-margin businesses, rising exports, and increasing industrial and automotive exposure. Key growth drivers include entry into bare PCB manufacturing via a JV, inorganic expansion into defense and solar inverters, and a diversified ₹6,400cr order book that provides robust revenue visibility.
• As per market consensus, Syrma trades at ~36x one-year forward P/E, below its three-year average of ~42x. The outlook remains positive, supported by strong revenue visibility, improving margins driven by higher export mix, and benefits from ongoing backward integration.
Technical View
• The stock has shown constructive price action, rebounding from its corrective phase and maintaining a higher-low structure, indicating underlying strength.
• Price has respected the medium-term moving average and witnessed a bounce, highlighting demand at lower levels within the broader trend.
• The RSI is turning upward from the mid-zone, signalling improving momentum without overextension.
• Initiate long positions between ₹760–₹790, maintain a stop-loss at ₹650, and target ₹940, offering a favourable risk–reward aligned with the prevailing bullish trend.
