loader2
Login Open ICICI 3-in-1 Account

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Syrma has the most diversified business mix across products and geographies

ICICIdirect Research 27 Jun 2025 DISCLAIMER

Among EMS companies, Syrma has the most diversified business mix across products and geographies. The company has presence across consumer, automotive, industrials, healthcare, IT, railways and defence. Similarly, geographically ~23% of revenue is from exports while plant location is also diversified across north, south, western regions alongwith international presence.  

Management has guided for revenue growth of 30-35% in FY26 driven by faster growth in margin accretive segments like industrial and healthcare which is noteworthy. Consumer division, a low margin segment which formed ~36% of revenue in FY25 shall be reduced to ~30% in FY26. Consol EBITDA margin of Syrma improved from 6.4% in FY24 to 8.5% in FY25 which we expect shall further improve to 9.4% by FY27E.

Growth shall also be backed by pick up in exports which is again a margin accretive segment. In FY25 exports remained relatively subdued at ~860 crore (~23% of revenue) largely due to softness in US and European markets. Syrma’s medium term aspiration is to increase the export mix to 30-35% which shall be margin accretive, aid growth and provide diversification.

Overall, we estimate company shall deliver revenue CAGR of 28% over FY25-27 along with PAT CAGR of 37%. The stock trades at PE of ~32x its FY27 EPS which is relatively attractively priced when compared to peers. Further, Syrma has recently announced its foray into component segment wherein details are awaited which could add to its medium-term profitability.

Recommend BUY rating on the stock with target price of Rs 640/share.   

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere