Introduction
Electronics manufacturing stock has witnessed a remarkable 20% surge on the stock exchange following the release of its stellar Q3FY25 financial results. Syrma SGS Technology revenue for the quarter increased by 24% YoY, reaching ₹8,915 million, while its profit after tax (PAT) surged by an impressive 161% YoY to ₹530 million.
This growth is largely attributed to robust demand from the Auto and Industrial segments.
The company has also shown an optimistic outlook for future growth, leveraging industry trends and high consumer demand.
Key Highlights of Q3FY25 Results
Revenue Growth: Syrma SGS Technology, a prominent player in the electronics manufacturing services (EMS) industry, reported a 24% year-over-year increase in revenue, reaching ₹8,915 million for Q3FY25.
Profit Surge: Profit after tax (PAT) jumped 161% to ₹530 million, reflecting exceptional operational performance.
EBITDA Growth: The company’s EBITDA surged by 96% YoY to ₹1,013 million, highlighting strong profitability.
Nine-Month Performance: For the nine months ended December 31, 2024, Syrma posted a revenue of ₹28,973 million, marking a 40% YoY growth, with a corresponding 43% increase in EBITDA and PAT.
Positive Market Sentiment: The stock’s price shot up by 20% to ₹505.10 per share after the results, reflecting positive investor sentiment.
Electronics Manufacturing Stock Performance and Investor Confidence
The strong Q3FY25 results have sparked investor optimism, as evidenced by a dramatic 20% rise in Syrma SGS Technology’s stock price on January 29, 2025.
The stock opened at ₹455.00, which represented an 8.10% increase from its previous close of ₹420.95. It soon reached a high of ₹505.10, reflecting the positive market reception.
By the end of the day, the stock closed at ₹505.10, giving it a market capitalization of ₹8,998.76 crore.
This surge in stock price underscores the market’s confidence in the company’s ability to sustain its growth trajectory, especially within the high-demand sectors of Auto and Industrials.
Syrma SGS Technology’s Strong Growth Drivers
Syrma SGS Technology continues to benefit from its key position in the Electronics Manufacturing Services (EMS) industry, which has seen increased demand across various verticals.
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The company’s performance in the Auto and Industrials sectors has been a standout, driving revenue growth and bolstering profitability.
Syrma’s strong focus on innovation and advanced technology is helping it meet the growing demand for precision engineering, printed circuit board (PCB) assembly, and Radio Frequency Identification (RFID) solutions.
These technological advancements are propelling the company toward sustained market expansion.
Moreover, the company remains optimistic about the future, citing the continued demand for electronics across industries as a key growth driver.
This positions Syrma SGS Technology to capitalize on the growing trend of automation and digitalization, which is expected to propel further growth in the coming quarters.
Nine-Month Performance Summary:
For the period ending December 31, 2024, Syrma SGS Technology delivered a solid nine-month performance, which further reflects the strength of its business model:
- Revenue: ₹28,973 million, up 40% YoY.
- EBITDA: ₹2,430 million, marking a 43% YoY increase.
- PAT: ₹1,130 million, up 43% YoY.
These impressive numbers demonstrate Syrma’s consistent ability to deliver growth and profitability over an extended period, cementing its position as a leader in the EMS sector.
Recent Developments Boosting Investor Confidence
In September 2024, Syrma SGS Technology saw its stock rise 7.3% intraday, following India Ratings and Research affirming its ‘IND A1+’ rating for a ₹110 crore commercial paper.
This rating reaffirmed the company’s financial stability and contributed to investor confidence, further driving its stock price upward.
Additionally, prominent investors such as Krishna Kumar Pant and Ranjeet Singh Lonial hold substantial stakes in the company, showcasing strong investor confidence in Syrma’s growth prospects. Pant owns a 6.90% stake, worth ₹621 crore, while Lonial holds a 6.78% stake, valued at ₹610 crore.
Stock Performance in the Short-Term and Long-Term
Despite the impressive growth seen in Q3FY25, Syrma’s stock has faced some short-term volatility.
Over the past week, the stock declined by 9.93%, reflecting market uncertainty. Similarly, over the past six months, the stock saw a drop of 14.4%, and it recorded a 29.5% decline over the last year.
However, this decline is primarily attributed to broader market fluctuations rather than any significant operational setbacks.
Despite this volatility, Syrma SGS Technology’s strong financial performance, continued growth in key sectors, and robust demand outlook make it a company to watch in the long term.
Investors are keeping an eye on the stock as it navigates short-term challenges and positions itself for future expansion.
Shareholding Pattern
Syrma SGS Technology has a diverse shareholding pattern. As of December 2024, promoters hold 46.58% of the company, while Foreign Institutional Investors (FII) have a 8.49% stake, and Domestic Institutional Investors (DII) hold 7.46%. Retail and other investors make up 37.47% of the total shareholding.
The stability in promoter holdings and continued institutional backing highlights Syrma’s potential for sustained growth in the competitive EMS market.
About Syrma SGS Technology
Syrma SGS Technology is an industry-leading provider of electronics manufacturing services (EMS), specializing in precision engineering, PCB assembly, and RFID solutions.
The company serves a wide range of industries, including automotive, industrial, and consumer electronics.
With a focus on cutting-edge technology and innovation, Syrma is well-positioned to capitalize on the growing demand for high-quality electronics solutions.
Conclusion:
Syrma SGS Technology’s Q3FY25 performance reflects its strong position in the Electronics Manufacturing Stock sector, with impressive growth in revenue and profit.
The company continues to benefit from robust demand in the Auto and Industrials sectors, and its optimistic outlook for the future is supported by its strong financial performance, cutting-edge technology, and investor confidence.
Investors should remain attentive to Syrma’s stock, as it continues to navigate short-term volatility while positioning itself for long-term success in a rapidly evolving market.
