ICICI Securitie's research report on Syrma SGS Technology
Syrma reported revenue/EBITDA growth of 92.9%/20.7% YoY while APAT declined 32.3% YoY. Gross/EBITDA margin contracted 706bps/230bps YoY primarily due to change in revenue mix, in our view. Profitability was impacted due to higher depreciation and finance costs. Other income declined 30.7% YoY.
Outlook
We model Syrma to report revenue/PAT CAGR of 40.8%/52.2% YoY over FY24-26E. We remain positive on Syrma's strong revenue trajectory and model recovery in H2FY25-FY26. Retain BUY with DCF-based revised TP of INR 540 (implied P/E of 38x FY26E; earlier TP: INR 600).
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