SYRMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | SYRMA | Market Cap | 20,098 Cr. | Current Price | 1,040 ₹ | High / Low | 1,188 ₹ |
| Stock P/E | 67.9 | Book Value | 154 ₹ | Dividend Yield | 0.14 % | ROCE | 15.8 % |
| ROE | 13.3 % | Face Value | 10.0 ₹ | DMA 50 | 941 ₹ | DMA 200 | 805 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 0.70 % | PAT Qtr | 81.4 Cr. | PAT Prev Qtr | 95.4 Cr. |
| RSI | 58.7 | MACD | 27.3 | Volume | 10,94,374 | Avg Vol 1Wk | 12,39,307 |
| Low price | 499 ₹ | High price | 1,188 ₹ | PEG Ratio | 0.90 | Debt to equity | 0.09 |
| 52w Index | 78.5 % | Qtr Profit Var | 33.8 % | EPS | 15.2 ₹ | Industry PE | 30.4 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹81.4 Cr. vs ₹95.4 Cr. previous quarter, showing decline despite overall growth trend (33.8% YoY).
- Margins: ROE at 13.3% and ROCE at 15.8% reflect decent efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.09 indicates very low leverage, strong financial stability.
- Cash Flow: Stable due to consistent earnings and conservative debt management.
💹 Valuation Indicators
- P/E Ratio: 67.9 vs Industry PE of 30.4 — trades at a significant premium, suggesting overvaluation.
- P/B Ratio: Price ₹1,040 vs Book Value ₹154 → ~6.75x, expensive relative to assets.
- PEG Ratio: 0.90 indicates fair valuation relative to growth.
- Intrinsic Value: Current price appears stretched compared to fundamentals.
⚙️ Business Model & Advantage
Syrma SGS Technology operates in electronics manufacturing services (EMS), focusing on automotive, industrial, and consumer electronics. Its competitive advantage lies in strong client relationships, diversified product portfolio, and exposure to high-growth sectors. However, valuations are demanding and profitability is modest compared to peers.
📈 Technicals & Entry Zone
- RSI at 58.7 indicates neutral to slightly overbought momentum.
- MACD positive (27.3) suggests short-term bullishness.
- Entry Zone: Attractive accumulation around ₹900–₹960 range.
- Long-term Holding: Suitable for investors seeking exposure to EMS growth, but valuation risks must be monitored.
✅ Positive
- Strong ROCE (15.8%) and ROE (13.3%).
- Low debt-to-equity ratio (0.09).
- DII holdings increased (+0.70%).
⚠️ Limitation
- High P/E ratio (67.9) compared to industry average.
- P/B ratio (6.75x) signals overvaluation.
- Quarterly PAT declined from ₹95.4 Cr. to ₹81.4 Cr.
📰 Company Negative News
- Profit variation negative (-14.7% sequentially).
- FII holdings declined (-0.13%).
🌟 Company Positive News
- DII holdings increased (+0.70%).
- Strong presence in EMS sector with diversified clients.
- Low debt ensures financial resilience.
🏭 Industry
Electronics manufacturing services industry PE at 30.4 reflects moderate valuations. Demand is driven by automotive electronics, industrial automation, and consumer devices. Global competition and margin pressures remain key risks.
🔎 Conclusion
Syrma SGS Technology demonstrates strong efficiency, low debt, and exposure to high-growth sectors, but current valuations are stretched with high P/E and P/B ratios. Long-term investors may consider accumulating in the ₹900–₹960 range, aligning with EMS industry growth while being cautious of valuation risks.
For deeper insights, you could explore a peer comparison or an industry outlook to complement this analysis.