Buy Syrma SGS Technology, target price Rs 350: ICICI Securities

ICICI Securities has buy call on Syrma SGS Technology with a target price of Rs 350. The current market price of Syrma SGS Technology Ltd. is Rs 304.85.

Syrma SGS Technology Ltd., incorporated in the year 2004, is a Small Cap company (having a market cap of Rs 5339.74 Crore) operating in General sector.

Syrma SGS Technology Ltd. key Products/Revenue Segments include Other Operating Revenue, Sale of services, Scrap and Export Incentives for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 474.82 Crore, up 21.20 % from last quarter Total Income of Rs 391.78 Crore and up 120.12 % from last year same quarter Total Income of Rs 215.70 Crore. Company reported net profit after tax of Rs 28.95 Crore in latest quarter.

Investment Rationale
The brokerage models revenue and PAT CAGRs of 33.3% and 47.9% respectively over FY22-FY25E, with RoE higher than cost of capital. Maintain BUY rating with a DCF-based target price of Rs350 (25x FY25E EPS). Key risks: Failure of some of the new products, sharp increase in commodity prices, and higher competitive intensity.

Promoter/FII Holdings
Promoters held 47.42 per cent stake in the company as of 30-Sep-2022, while FIIs owned 0 per cent, DIIs 7.46 per cent.