SYRMA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

📊 Core Financials Analysis

Profitability & Growth

PAT declined from ₹65.4 Cr. to ₹49.7 Cr. QoQ, but YoY growth remains strong (Qtr Profit Var: 158%).

ROCE at 12.4% and ROE at 10.2% are modest — decent but not industry-leading.

EPS of ₹11.3 is fair, though valuation seems stretched relative to earnings.

Debt & Liquidity

Debt-to-equity ratio of 0.38 is manageable, though higher than ideal for a tech manufacturer.

Dividend yield is minimal at 0.20%, indicating reinvestment focus.

Cash Flow

No direct data, but consistent profitability and moderate debt suggest stable operational cash flows.

📉 Valuation Metrics

Metric Value Remarks

P/E Ratio 65.7 Very high vs. industry PE of 37.2

P/B Ratio ~7.6 Premium valuation

PEG Ratio 1.43 Slightly overvalued based on growth

Intrinsic Value Overvalued Current price likely exceeds fair value

PEG above 1 and high P/E suggest the stock is priced for perfection — any earnings miss could trigger correction.

🏭 Business Model & Competitive Edge

Syrma SGS Technology operates in electronics manufacturing services (EMS), serving sectors like automotive, healthcare, and industrials.

Competitive advantage lies in its design-led manufacturing, strong client relationships, and exposure to high-growth segments like IoT and EV components.

Benefiting from the “China+1” strategy and India’s push for electronics self-reliance.

📌 Entry Zone & Investment Guidance

Entry Zone: ₹580–₹640 range — below 50 DMA and closer to recent support levels, offering better valuation comfort.

Current Price: ₹746 — near 52-week high, RSI at 83.0 and MACD at 44.3 suggest extremely overbought conditions.

Long-Term View

Hold if already invested — strong growth potential and sector tailwinds.

New investors should wait for a pullback before entering, as current levels are overheated.

Would you like a comparison with Dixon Technologies or Kaynes Technology to evaluate EMS sector positioning?

Edit in a page