Syrma SGS Technology Ltd logo

Syrma SGS Technology Ltd

SYRMA NSE

Incorporated in 2004, Syrma SGS Technology Ltd is a Chennai-based electronics manufacturing services (EMS) company providing engineering, design, and manufacturing solutions.[1]

AI Verdict: HOLD Confidence: 5%

Syrma SGS delivers strong revenue growth of 33% CAGR over 3 years and 102% TTM profit growth, but trades at an expensive 75x PE and 9x book value with modest ROE of 11% over 3 years. The risk-reward is balanced at current levels given the premium valuation relative to capital efficiency.

Key Fundamentals

Volatility
High Risk
P/E Ratio
86.26
EBITDA
₹540 Cr
Return on Equity
7.98%
Debt to Equity
0.38
EPS
₹5.58
52W High
₹1,433
52W Low
₹507.1

Technical Indicators

Key Insights

Strengths

3
  • Company has reduced debt.
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 36.2% CAGR over last 5 years

Weaknesses

4
  • Stock is trading at 9.60 times its book value
  • Promoter holding has decreased over last quarter: -0.44%
  • Company has a low return on equity of 10.6% over last 3 years.
  • Working capital days have increased from 59.8 days to 107 days

Growth Rate

Revenue Growth
25.62% ↗
Net Income Growth
85.82% ↗
Cash Flow Change
255.32% ↗
ROE
36.44% ↗
ROCE
33.94% ↗
EBITDA Margin (Avg.)
14.40% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk high

Syrma SGS delivers strong revenue growth of 33% CAGR over 3 years and 102% TTM profit growth, but trades at an expensive 75x PE and 9x book value with modest ROE of 11% over 3 years. The risk-reward is balanced at current levels given the premium valuation relative to capital efficiency.

Bull Case 8
  • Compounded sales growth of 33% CAGR over 3 years demonstrates strong top-line momentum in the EMS space
  • TTM profit growth of 102% indicates significant operating leverage kicking in as the business scales
  • 5-year compounded profit CAGR of 36% shows sustained earnings expansion, not a one-off spike
  • 68% of analysts have a buy rating (15 out of 22 total ratings) reflecting broad Street confidence
  • Company has reduced debt, improving balance sheet quality and financial flexibility for capex
  • ROE improved from 11% (3-year average) to 14% last year, signaling improving capital efficiency
  • Stock CAGR of 163% over 1 year reflects strong market re-rating driven by EMS sector tailwinds
  • Revenue growth of 40% CAGR over 5 years validates the long-term structural growth thesis in electronics manufacturing
Bear Case 8
  • PE of 75x is extremely expensive even for a high-growth industrial, leaving no margin of safety
  • Price-to-book of 9.06x is steep for a contract manufacturer with limited pricing power
  • 3-year average ROE of only 11% is inadequate to justify a 75x earnings multiple
  • Working capital days ballooned from 59.8 to 107 days, indicating deteriorating cash conversion efficiency
  • Promoter holding declined by 0.44% last quarter, a minor but negative governance signal
  • Dividend yield of just 0.11% offers negligible income support if growth slows
  • Only 4.55% sell ratings but 27% hold ratings suggest Street is cautious on further upside from here
  • Market cap of Rs 25,616 Cr demands flawless execution — any earnings miss could trigger sharp de-rating from 75x PE

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Positives 3
  • FY26 PAT surges 87% YoY Jun 8

    Syrma SGS reported PAT of ₹3,458 million (up 87% YoY) on revenue of ₹48,191 million (up 27% YoY) for FY26, with EBITDA margin improving to 12.0%.

  • JV with Kaga for EMS Jun 22

    Syrma signed a JV with Kaga Electronics India, investing ₹15 Cr for 60% stake to set up an EMS facility targeting Japanese clients. Kaga holds 40% with ₹10 Cr investment.

  • Expanding manufacturing capabilities Jun 8

    Company is building a PCB facility in Andhra Pradesh and acquired a stake in Elcome, broadening its manufacturing footprint and segment diversification into IT and Railways.

Neutral 2
  • ₹31.33 Cr block trade on NSE Jun 16

    Approximately 239,006 shares traded at ₹1,310.90 per share in a block deal worth ₹31.33 crores, indicating significant institutional activity.

  • Investor meets in May-June May 25

    Syrma will participate in investor conferences hosted by 360 ONE Capital and ICICI Securities in Mumbai and Chennai during May-June 2026.

TL;DR: Syrma SGS is executing well with 87% PAT growth in FY26 driven by strong revenue expansion and margin improvement. The Kaga JV and PCB facility signal continued capacity buildout. No visible headwinds emerged in recent news flow. The growth trajectory appears to be accelerating with diversification into new segments and geographies providing a positive outlook.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
680
601
712
707
1,143
1,160
833
870
924
944
1,146
1,264
1,465
Expenses
623
564
663
667
1,059
1,115
762
790
817
857
1,031
1,105
1,291
Operating Profit
57
37
49
39
83
45
71
80
108
87
115
159
174
OPM %
8%
6%
7%
6%
7%
4%
9%
9%
12%
9%
10%
13%
12%
Other Income
24
22
8
12
7
15
10
20
22
16
9
7
11
Interest
4
8
8
11
13
14
14
15
16
15
13
8
13
Depreciation
9
10
12
14
16
17
17
20
21
21
22
20
21
PBT
68
41
37
27
61
29
51
64
93
67
90
138
150
Tax %
37%
31%
17%
25%
26%
31%
22%
17%
23%
26%
26%
20%
21%
Net Profit
43
28
31
20
45
20
40
53
71
50
66
110
119
EPS in Rs
2.39
1.61
1.6
0.87
1.97
1.09
2.04
2.74
3.67
2.79
3.33
5.33
5.25
Figures in ₹ Crores

Profit & Loss

  Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
862
886
1,267
2,048
3,154
3,787
4,819
Expenses
727
784
1,138
1,856
2,951
3,463
4,275
Operating Profit
135
102
129
192
203
323
545
OPM %
16%
11%
10%
9%
6%
9%
11%
Other Income
13
18
18
44
56
47
33
Interest
15
10
11
26
41
58
48
Depreciation
19
23
25
31
51
75
84
PBT
113
87
111
179
166
237
445
Tax %
19%
24%
31%
31%
25%
22%
22%
Net Profit
92
69
79
123
124
184
346
EPS in Rs
1,282
917
5.59
6.75
6.04
9.53
16.48
Div. Payout %
0%
0%
0%
22%
25%
16%
9%
Figures in ₹ Crores

Balance Sheet

  Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
5
5
138
177
177
178
193
Reserves
418
595
434
1,364
1,435
1,572
2,670
Borrowings
125
103
218
375
630
665
400
Other Liabilities
238
258
364
628
1,446
1,788
2,508
Total Liabilities
786
960
1,154
2,543
3,688
4,202
5,770
Fixed Assets
296
292
378
532
1,075
1,144
1,463
CWIP
1
0
41
25
17
66
68
Investments
30
132
41
84
42
59
547
Other Assets
459
536
694
1,901
2,554
2,933
3,693
Total Assets
786
960
1,154
2,543
3,688
4,202
5,770
Figures in ₹ Crores

Cash Flow

  Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
156
37
-13
-70
-114
176
290
Investing
-46
-113
-373
-885
-9
-103
-742
Financing
-59
72
382
968
155
-71
558
Net Cash Flow
51
-4
-4
13
32
2
105
Free Cash Flow
108
18
-103
-188
-451
4
114
CFO/OP
131
58
13
-16
-29
73
70
Figures in ₹ Crores

Ratios

  Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
76
86
78
72
108
142
139
Inventory Days
93
109
119
139
146
102
108
Days Payable
110
112
98
116
178
196
199
Cash Conversion Cycle
60
83
99
95
76
49
48
Working Capital Days
20
51
30
42
36
37
107
ROCE %
—
15%
16%
15%
10%
12%
17%

Shareholding Pattern

As of Mar 2026
Promoters 42.28%
Public 34.41%
DIIs 16.59%
FIIs 6.60%
Others 0.11%
Government 0.01%
Total 100.00%
  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
47.27%
47.22%
46.89%
46.89%
46.89%
46.89%
46.58%
46.53%
46.43%
42.98%
42.72%
42.28%
FIIs
9.27%
10.14%
11.13%
12.95%
10.44%
10.32%
8.49%
6.20%
6.34%
7.02%
6.47%
6.60%
DIIs
9.24%
9.63%
8.21%
5.80%
6.45%
6.44%
7.46%
7.74%
9.15%
16.38%
15.89%
16.59%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
Public
34.24%
33.02%
33.78%
34.36%
36.22%
36.35%
37.38%
39.49%
38.04%
33.53%
34.80%
34.41%
Others
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.09%
0.06%
0.06%
0.08%
0.13%
0.11%
No. of Shareholders
81,724
96,452
1,05,068
1,12,395
1,24,943
1,29,398
1,34,503
1,63,296
1,61,089
1,70,983
1,78,615
1,78,986

Documents

Frequently Asked Questions about Syrma SGS Technology Ltd

What does Syrma SGS Technology Ltd do?
Incorporated in 2004, Syrma SGS Technology Ltd is a Chennai-based electronics manufacturing services (EMS) company providing engineering, design, and manufacturing solutions.[1]
Where is Syrma SGS Technology Ltd (SYRMA) listed?
Syrma SGS Technology Ltd is listed on the Indian stock exchanges. It is listed on NSE: SYRMA and BSE: 543573. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Syrma SGS Technology Ltd belong to?
Syrma SGS Technology Ltd operates in the Industrials sector within the Industrial Manufacturing industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the PE ratio of Syrma SGS Technology Ltd?
The Price-to-Earnings (PE) ratio of Syrma SGS Technology Ltd is 86.26. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Syrma SGS Technology Ltd?
Over the past 52 weeks, Syrma SGS Technology Ltd has traded between a low of ₹507.1 and a high of ₹1,433. This range helps investors understand the stock's price volatility and recent trading levels.
What is the Return on Equity (ROE) of Syrma SGS Technology Ltd?
Syrma SGS Technology Ltd has a Return on Equity (ROE) of 7.98%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Syrma SGS Technology Ltd on Tapetide?
On Tapetide, you can view Syrma SGS Technology Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in 2004, Syrma SGS Technology Ltd is a Chennai-based electronics manufacturing services (EMS) company providing engineering, design, and manufacturing solutions.[1]

Website syrmasgs.com
Listed 2022-08-26
Face Value ₹ 10
Issued Size 19,28,30,485

Explore More

More in Industrials → FII DII Data Stock Screener Nifty 50 Heatmap F&O Ban List