Buy Syrma SGS Technology, target price Rs 385: ICICI Securities

ICICI Securities has buy call on Syrma SGS Technology with a target price of Rs 385.The current market price of Syrma SGS Technology is Rs 347.5.

Syrma SGS Technology, incorporated in the year 2004, is a Small Cap company (having a market cap of Rs 6069.67 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 31-03-2023, the company has reported a Consolidated Total Income of Rs 701.16 Crore, up 33.71 % from last quarter Total Income of Rs 524.39 Crore and up 84.84 % from last year same quarter Total Income of Rs 379.34 Crore. Company has reported net profit after tax of Rs 42.86 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 31-12-2022, the company has a total of 18 Crore shares outstanding.

Investment Rationale
With revival in customer industries of Syrma i.e. Industrial, Automotive and healthy growth in Consumer and Telecom segments, the brokerage models the order inflow to remain strong in FY24-25. The brokerage trims FY24-25 earnings estimates to factor in change in revenue mix and Q4FY23 results.

ICICI Securities models revenue and PAT CAGRs of 38.6% and 33.4% respectively over FY23-FY25E.

Promoter/FII Holdings
Promoters held 47.27 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.93 per cent, DIIs 7.57 per cent.