Buy Syrma SGS Technology; target of Rs 550: Motilal Oswal

Motilal Oswal is bullish on Syrma SGS Technology has recommended buy rating on the stock with a target price of Rs 550 in its research report dated October 28, 2024.

Broker Research

October 29, 2024 / 11:31 IST

Buy

26 Aug, 2025 12:21

Volume

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Motilal Oswal's research report on Syrma SGS Technology

Syrma SGS Technology (SYRMA) reported a strong operating performance in 2QFY25, with EBITDA margins expanding 160bp YoY due to operating leverage and a favorable business mix (lower share of low-margin consumer business at 33% in 2QFY25 vs. 35% in 2QFY24 and higher share from exports). However, revenue growth tapered down to 17% YoY due to the company’s focus on improving the business mix. With a healthy order book at hand (INR48b as of 2QFY25; up 26%/7% YoY/QoQ) and expansion of margins, we expect SYRMA to witness a stronger 2HFY25. Factoring in the better-than-expected operating performance of 2Q, we have increased our EPS estimate for FY25 by 6% while largely maintaining our FY26E EPS. We reiterate our BUY rating on the stock with a TP of INR550 (30x Sep’26E EPS).

Outlook

We estimate a CAGR of 35%/44%/53% in revenue/EBITDA/adj. PAT over FY24-27, driven by strong revenue growth and margin expansion. We reiterate our BUY rating on the stock with a TP of INR550 (30x Sep’26E EPS).

For all recommendations report, click here