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 is Rs 271.6.

Syrma SGS Technology, incorporated in the year 2004, is a Small Cap company (having a market cap of Rs 4765.24 Crore) operating in General sector.

Syrma SGS Technology 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 has 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 has reported net profit after tax of Rs 28.95 Crore in latest quarter.

The company’s top management includes Mr.Sandeep Tandon, Ms.Smita Jatia, Mr.Hetal Gandhi, Mr.Anil Nair, Mr.Kunal Shah, Mr.Sridhar Narayan, Mr.Jayesh Doshi, Mr.Jaideep Tandon, Mr.Jasbir Singh Gujral, Mr.Bharat Anand. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 18 Crore shares outstanding.

Investment Rationale
The brokerage forecast Syrma to gain market shares as well as wallet shares in the PCBA and RFID segments. Also the brokerage models EBITDA margin expansion over FY22-FY25E on the back of operating leverage, benefits of PLI schemes and correction in input prices.

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.