ICICI Securitie`s research report on Syrma SGS Technology
Syrma’s Q4FY25 print was strong with EBITDA margin reaching to highest level (12.4%) in past 15 quarters. While there is reduction in revenues, we note there is reduction in low-margin business of consumer segment. Reduction in revenue of lowmargin business has resulted in boosting overall margins. The company has guided for 30-35% revenue growth with 8% EBITDA margin in FY26. We believe there is potential to surprise positively on the margins with higher revenue share of Industrials/ auto and operating leverage.
Outlook
The orderbook stand at INR 52-54bn. It comprises of 25% auto, 30% consumer, 28% Industrial and rest among IT, Healthcare and railways. Strong orderbook with skew towards Industrial and auto indicates potential for margin expansion. Exports were 30% of net sales. We remain constructive on Syrma. Retain BUY with DCF based revised TP of INR 611 (implying 33x FY27E EPS).
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