SYRMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | SYRMA | Market Cap | 18,491 Cr. | Current Price | 959 ₹ | High / Low | 1,032 ₹ |
| Stock P/E | 74.9 | Book Value | 145 ₹ | Dividend Yield | 0.16 % | ROCE | 6.34 % |
| ROE | 4.54 % | Face Value | 10.0 ₹ | DMA 50 | 862 ₹ | DMA 200 | 767 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 0.70 % | PAT Qtr | 95.4 Cr. | PAT Prev Qtr | 65.4 Cr. |
| RSI | 62.3 | MACD | 46.4 | Volume | 9,36,877 | Avg Vol 1Wk | 8,23,865 |
| Low price | 437 ₹ | High price | 1,032 ₹ | PEG Ratio | 2.51 | Debt to equity | 0.10 |
| 52w Index | 87.7 % | Qtr Profit Var | 83.3 % | EPS | 13.1 ₹ | Industry PE | 32.4 |
📊 SYRMA (Syrma SGS Technology Ltd.) shows strong revenue momentum with quarterly PAT growth of 83.3% (₹95.4 Cr vs ₹65.4 Cr). However, fundamentals remain weak with low ROE (4.54%) and ROCE (6.34%). Valuations are stretched with a P/E of 74.9 compared to industry average of 32.4, and PEG ratio of 2.51 indicates overvaluation relative to growth. EPS of ₹13.1 provides earnings visibility, while debt-to-equity ratio of 0.10 ensures financial stability. Technical indicators show bullish momentum with RSI at 62.3 and MACD at 46.4, supported by volumes above weekly average.
💰 Ideal Entry Price Zone: ₹850 – ₹900 (near 50 DMA support).
📈 Exit / Holding Strategy: Long-term investors can hold for 2–4 years, but should consider profit booking if price exceeds ₹1,000–₹1,050 without earnings support. Dividend yield is negligible (0.16%), so returns rely mainly on capital appreciation.
✅ Positive
- Strong quarterly PAT growth (83.3%).
- EPS of ₹13.1 supports earnings visibility.
- Low debt-to-equity ratio (0.10) ensures financial stability.
- Institutional support with FII (+0.13%) and DII (+0.70%) inflows.
- Price trading above DMA 50 and DMA 200 reflects momentum.
⚠️ Limitation
- High P/E of 74.9 compared to industry PE of 32.4.
- Low ROE (4.54%) and ROCE (6.34%).
- PEG ratio of 2.51 indicates overvaluation relative to growth.
- Dividend yield negligible at 0.16%.
📉 Company Negative News
- Weak efficiency metrics despite revenue growth.
- High valuation multiples may limit upside potential.
📈 Company Positive News
- Strong quarterly profit growth highlights operational momentum.
- Institutional investors increasing stake shows confidence.
🔌 Industry
- Electronics manufacturing sector benefits from rising demand in consumer and industrial applications.
- Global supply chain risks and competition remain challenges.
🔎 Conclusion
SYRMA is a growth-oriented company with strong revenue momentum but weak efficiency and stretched valuations. Long-term investors should accumulate only near ₹850–₹900 for safety. Current holders can stay invested for 2–4 years, targeting exits above ₹1,000–₹1,050 if earnings growth does not justify premium valuations.