⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SYRMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | SYRMA | Market Cap | 15,153 Cr. | Current Price | 785 ₹ | High / Low | 910 ₹ |
| Stock P/E | 61.4 | Book Value | 145 ₹ | Dividend Yield | 0.19 % | ROCE | 6.34 % |
| ROE | 4.54 % | Face Value | 10.0 ₹ | DMA 50 | 781 ₹ | DMA 200 | 730 ₹ |
| Chg in FII Hold | -0.55 % | Chg in DII Hold | -0.49 % | PAT Qtr | 95.4 Cr. | PAT Prev Qtr | 65.4 Cr. |
| RSI | 50.9 | MACD | -13.9 | Volume | 21,99,727 | Avg Vol 1Wk | 15,33,417 |
| Low price | 355 ₹ | High price | 910 ₹ | PEG Ratio | 2.05 | Debt to equity | 0.10 |
| 52w Index | 77.4 % | Qtr Profit Var | 83.3 % | EPS | 13.1 ₹ | Industry PE | 28.0 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT rose from ₹65.4 Cr. to ₹95.4 Cr. (83.3% growth), showing strong momentum.
- Margins: ROE at 4.54% and ROCE at 6.34% reflect weak profitability and efficiency despite profit growth.
- Debt: Debt-to-equity ratio of 0.10 indicates very low leverage, ensuring financial stability.
- Cash Flow: Supported by electronics manufacturing demand, though margins remain thin.
💹 Valuation Indicators
- P/E Ratio: 61.4 vs Industry PE of 28.0 → significantly overvalued compared to peers.
- P/B Ratio: Current Price ₹785 vs Book Value ₹145 → ~5.41x, reflecting premium valuation.
- PEG Ratio: 2.05 → indicates moderate overvaluation relative to growth.
- Intrinsic Value: Estimated fair value near ₹700–730, suggesting current price is slightly overvalued.
🔧 Business Model & Competitive Advantage
- Operates in electronics manufacturing services (EMS), catering to automotive, consumer electronics, and industrial sectors.
- Competitive advantage lies in diversified product offerings and growing demand for EMS in India.
- Scale and sectoral exposure provide growth opportunities, though profitability remains modest.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between ₹700–730, closer to intrinsic value.
- Long-Term Holding: Suitable for investors seeking exposure to EMS growth in India; hold for 3–5 years with caution due to valuation risks.
✅ Positive
- Quarterly PAT growth of 83.3% shows strong earnings momentum.
- Low debt-to-equity ratio (0.10) ensures financial stability.
- Strong positioning in EMS sector with diversified demand drivers.
⚠️ Limitation
- ROE (4.54%) and ROCE (6.34%) reflect weak efficiency.
- P/E ratio (61.4) is significantly higher than industry average.
- PEG ratio (2.05) signals overvaluation relative to growth.
📉 Company Negative News
- FII holdings decreased (-0.55%), showing reduced foreign investor confidence.
- DII holdings decreased (-0.49%), reflecting weaker domestic institutional support.
📈 Company Positive News
- Strong quarterly earnings growth.
- Growing demand for EMS in India supports long-term prospects.
- Low debt levels provide resilience against market volatility.
🏭 Industry
- EMS industry is expanding rapidly, driven by electronics demand and localization initiatives.
- Industry PE at 28.0 shows sector is moderately valued compared to Syrma’s premium.
- Government initiatives like “Make in India” support long-term growth in electronics manufacturing.
🔎 Conclusion
Syrma demonstrates strong earnings growth and low debt, but weak ROE/ROCE and high valuation multiples limit near-term attractiveness. Entry around ₹700–730 offers better risk-reward. Long-term investors can hold for 3–5 years, benefiting from EMS industry growth, though caution is advised due to premium valuation and modest efficiency.