Buy Syrma SGS Technology; target of Rs 2100: Motilal Oswal

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Strong demand across segments, including automotive, industrial, and MedTech, driving revenue growth of 74% YoY.
  • Increasing exports, with export revenue expected to exceed INR17b in FY27, driven by industrial, MedTech, and automotive segments.
  • Expansion into new verticals, such as defense, and addition of new customers, with 18 new customers added in 1HFY27.
  • Foray into bare PCB, HDI, and CCL manufacturing through its JV, with a revenue potential of INR7-8b in FY29.

Thesis Validation Checklist

  • Monitor revenue growth across segments, particularly automotive and industrial, for signs of continued strength.
  • Track export revenue growth and margins, as well as the progress of the PCB project and other new initiatives.
  • Watch for signs of supply-chain constraints easing, which could lead to improved margins and profitability.
  • Keep an eye on the company's working capital management and cash flow generation, as well as its ability to maintain a healthy order book.