Established in 2004, Syrma SGS Technology Limited is a Chennai-based engineering and design company specializing in electronics manufacturing services (EMS). The company provides integrated solutions to original equipment manufacturers (OEMs), covering the entire product lifecycle—from initial concept to volume production.
Evolution and Milestones
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2004: Inception as Syrma Technology Private Limited, focusing on EMS and precision manufacturing.
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2021: Acquired SGS Tekniks Manufacturing Private Limited, a company with over 40 years of experience in the electronics industry. This strategic move expanded Syrma's capabilities and market reach.
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2021: Post-acquisition, the company rebranded to Syrma SGS Technology Private Limited on September 14, 2021, reflecting the integration of SGS Tekniks. Subsequently, it transitioned to a public limited company, adopting the name Syrma SGS Technology Limited on October 20, 2021.
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2022: Listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), raising $100 million to fund capacity and capability expansion.
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2023: Acquired Johari Digital Healthcare, venturing into the MedTech device sector and broadening its product portfolio.
Current Position
Today, Syrma SGS stands as a prominent EMS provider in India, offering a diverse range of products and services to various industries. The company's journey from a single entity to a conglomerate with multiple acquisitions and expansions underscores its commitment to innovation and excellence in the electronics manufacturing landscape.Diverse Product Portfolio and Service Segments
Syrma SGS operates across multiple sectors, providing a broad spectrum of products and services:
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Electronics Manufacturing Services (EMS): Offers end-to-end solutions for industrial appliances, automotive, healthcare, consumer products, and IT industries.
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Engineering & Technology Services: Provides design and development support for electronic products, ensuring innovation and efficiency.
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Medtech ODM Services: Specializes in original design manufacturing services tailored to the medical technology sector.
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Magnetics: Produces magnetic components essential for various electronic applications.
Financial Performance and Key Metrics
As of the quarter ending December 31, 2024, Syrma SGS reported the following financial highlights:
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Revenue Growth: Achieved a revenue growth of 61.44%, reflecting robust operational performance.
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Operating Margin: Reported an operating margin of 1.88%, indicating operational efficiency.
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Return on Equity (ROE): Recorded an ROE of 1.39%, showcasing the company's ability to generate returns on shareholders' investments.
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Debt to Equity Ratio: Maintained a debt to equity ratio of 0.35, signifying a balanced capital structure with a low proportion of debt.
Market Position and Peer Comparison
Syrma SGS operates in a competitive landscape alongside industry leaders such as Dixon Technologies and Amber Enterprises. While specific market share data is not publicly available, the company's robust financial performance and diverse service offerings position it favorably within the EMS sector.
| Stock |
Current Price |
Market Capitalization |
PE TTM Price to Earnings |
PEG TTM PE to Growth |
ROE Annual % |
RoA Annual % |
Piotroski Score |
Revenue Growth Annual YoY % |
Net Profit Annual YoY Growth % |
Dividend yield 1yr % |
| Syrma SGS Technology |
413.75 |
7371.29 |
52.93 |
2.47 |
6.65% |
2.90% |
2 |
53.55% |
-10.05% |
0.36% |
| Havells India Ltd. |
1458.65 |
91448.85 |
65.27 |
3.52 |
17.06% |
10.22% |
8 |
10.24% |
18.57% |
0.69% |
| Polycab India Ltd. |
5003.1 |
75247.72 |
40.91 |
3.84 |
21.79% |
14.76% |
4 |
28.22% |
40.48% |
0.60% |
| Waaree Energies Ltd. |
2125.25 |
61054.86 |
35.7 |
|
30.26% |
10.93% |
6 |
69.56% |
156.27% |
0.00% |
| Premier Energies Ltd. |
888.15 |
40035.53 |
52.45 |
|
48.50% |
6.50% |
5 |
116.74% |
1906.79% |
0.06% |
| Honeywell Automation |
33850.45 |
29928.88 |
56.27 |
3.93 |
13.90% |
10.24% |
8 |
17.48% |
14.47% |
0.30% |
| KEI Industries Ltd. |
3053.95 |
29181.29 |
45.71 |
2.86 |
18.44% |
12.47% |
5 |
17.48% |
21.66% |
0.25% |
Historical Stock Performance
As of March 15, 2025, Syrma SGS's stock is trading at ₹413.75, reflecting a slight decrease of 0.92% from the previous close. Over the past year, the stock has experienced fluctuations influenced by market conditions and company performance.
| Time |
Syrma SGS Technology |
Nifty50 Returns |
Sensex Returns |
Industry Returns |
Sector Returns |
| 1 Day |
-0.92% |
-0.33% |
-0.27% |
-0.75% |
-0.67% |
| 1 Week |
-7.96% |
-0.69% |
-0.68% |
-2.18% |
-1.01% |
| 1 Month |
-6.3% |
-2.32% |
-2.78% |
-8.32% |
-4.63% |
| 3 Months |
-31.89% |
-9.57% |
-10.11% |
-29.9% |
-19.71% |
| 6 Months |
-11.62% |
-11.67% |
-10.93% |
-18.62% |
-18.62% |
| 1 Year |
-14.75% |
1.13% |
1% |
19.1% |
23.08% |
| 3 Year |
88.07% |
32.75% |
30.7% |
779% |
366.91% |
| 5 Years |
88.07% |
124.98% |
116.48% |
2,406.39% |
1,499.43% |
| 10 Years |
88.07% |
158.99% |
159.02% |
876.21% |
880.18% |
Shareholding Pattern
The company's shareholding structure includes a mix of promoters, institutional investors, and the public. Notably, there has been a recent decrease in Foreign Institutional Investors (FII) holdings, which may impact future investment dynamics.
| Summary |
Dec 2024 |
Sep 2024 |
Jun 2024 |
Mar 2024 |
Dec 2023 |
Sep 2023 |
Jun 2023 |
Mar 2023 |
| Promoter |
46.6% |
46.9% |
46.9% |
46.9% |
46.9% |
47.2% |
47.3% |
47.3% |
| FII |
8.5% |
10.3% |
10.4% |
13.0% |
11.1% |
10.1% |
9.3% |
4.6% |
| DII |
7.5% |
6.4% |
6.5% |
5.8% |
8.2% |
9.6% |
9.2% |
8.6% |
| Public |
37.4% |
36.4% |
36.2% |
34.4% |
33.8% |
33.0% |
34.2% |
39.5% |
SWOT Analysis
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Strengths:
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Diverse product portfolio catering to multiple industries.
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Strong revenue growth and operational efficiency.
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Low debt levels, providing financial stability.
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Weaknesses:
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High Price-to-Earnings (P/E) ratio, indicating potential overvaluation.
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Recent decrease in FII holdings, which could affect investor confidence.
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Opportunities:
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Threats:
Management Commentary and Business Outlook
The management of Syrma SGS has expressed optimism about the company's growth trajectory, targeting $1 billion in revenue by the fiscal year 2027. They are actively exploring opportunities in the semiconductor and printed circuit board (PCB) sectors, aiming to diversify and strengthen their market position.
Conclusion
Syrma SGS Technology Limited has demonstrated significant growth and operational efficiency in the EMS industry. With a diverse product portfolio and strategic expansion plans, the company is well-positioned for future success. However, investors should remain cognizant of potential challenges, including market competition and valuation concerns.
Discalimer!
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