ICICI Securitie's research report on Syrma SGS Technology
Syrma reported revenue/EBITDA growth of 66.9%/24.4% YoY while APAT declined 17.5% YoY. Gross/EBITDA margin contracted 430bps/222bps YoY due to higher commodity costs and change in revenue mix. Profitability was impacted due to higher depreciation and finance costs. Revenue growth was higher due to the effect of revenue shift from Dec’23 to Jan’24 (INR 1-1.1bn).
Outlook
We model Syrma to report revenue/PAT CAGR of 40.8%/59.4% YoY over FY24-26E. Retain BUY with a revised DCF-based TP of INR 600 (implied P/E of 38x FY26E; earlier TP: INR 675).
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