 "Syrma SGS Technology rallies 8% on heavy volumes; here's why")
Syrma SGS Technology share price
Shares of Syrma SGS Technology (Syrma SGS) hit a 52-week high of ₹663.60 on the BSE in Wednesday’s intra-day trade amid heavy volumes on reports that the company is set to establish the country’s largest multi-layer Printed Circuit Board (PCB) and Copper Clad Laminate (CCL) manufacturing facility at Naidupeta in Andhra Pradesh.
The stock price of smallcap industrial products company surpassed its previous high of ₹646.50 touched on January 6, 2025. In the past 12 trading days, it has zoomed 32 per cent. The stock had hit a record high of ₹705 on December 19, 2023.
The average trading volumes at the counter jumped over three-fold with a combined 6.7 million shares changing hands on the NSE and BSE. READ STOCK MARKET UPDATES TODAY LIVE
Syrma SGS eyes India’s largest PCB unit in Andhra Pradesh
According to media reports, Chennai-based electronics manufacturing services firm Syrma SGS is looking to set up India’s largest multi-layer printed circuit board (PCB) and copper clad laminate (CCL) manufacturing unit in Andhra Pradesh.
The company plans to invest around ₹1,800 crore in the project, in partnership with South Korean major Shinhyup Electronics for technology and marketing support. Sources indicate that discussions are in an advanced stage, and the Andhra Pradesh cabinet is expected to clear a proposal by the company soon. The company may be applying for approval under the government’s production-linked incentive (PLI) scheme. CLICK HERE FOR MORE DETAILS
Meanwhile, global brokerage firm JPMorgan initiated coverage on the stock. JPMorgan gave an 'Overweight' rating to Syrma SGS, citing growth acceleration and margin expansion.
Syrma - Robust revenue growth in FY25, healthy outlook
Syrma SGS’s revenue was up 20.1 per cent year-on-year (YoY) at ₹3,787 crore in FY25 (FY24: 54 per cent YoY). While almost all the sectors witnessed revenue growth in FY25, major revenue growth during the year came from strong growth in the automotive and the industrial sectors followed by reasonable growth in consumer and other sectors. The management expects to generate revenue growth of 30 per cent-35 per cent YoY in FY26.
India Ratings and Research (Ind-Ra) believes the strong and growing order book (FYE25: ₹5,400 crore, FYE24: ₹4,500 crore, FYE23: ₹3,000 crore), presence in diversified sectors, addition of new contracts such in the smart meters segment or the healthcare segment, in addition to the revenue from recent acquisition from Johari Digital is likely to support robust revenue growth over the near-to-medium term.
Ind-Ra believes a strong demand for the company’s products, favourable regulatory policies for expansion of such businesses/industry in India through various schemes such as Production-Linked Incentive Scheme and an increased focus of the global original equipment manufacturers’ for shifting production and manufacturing to India will continue to support revenue growth in the short-to-medium term. The agency expects the margins to continue to improve in the near-to-medium term from FY25 levels with no significant change in the business mix, which is a key rating monitorable.
About the Company
Syrma SGS manufactures various electronic sub-assemblies, assemblies and box builds, disk drives, memory modules, power supplies/adapters, fibre optic assemblies, magnetic induction coils and RFID products, and other electronic products.