India's Syrma SGS jumps after HSBC initiates with 'buy'

Syrma SGS Technology

09/07/2026 05:20

** Shares of Syrma SGS Technology SYRM.NS up 4.5% at 1,427.4 rupees
** HSBC initiates coverage on electronics manufacturing services (EMS) co with "Buy" and PT of 1,750 rupees
** Says SYRM is one of India's top EMS, with growth underpinned by strong demand across verticals, particularly autos and industrials
** With India's government supporting EMS via schemes and subsidies, co says total addressable market expected to increase 4x in 2024-2029 to $68 billion - HSBC
** Expects margins to benefit from strong overseas sales, focus on specialized low-volume products and more in-house production over long term
** SYRM well positioned despite increasing competition, given its history of supplementing organic growth with inorganic acquisition and JVs
** Brokerage says its PT highest in the Street and implies a two-year forward PE of 53x, which it justifies based on co's high growth
** See CAGR of 34% for co's EPS over the next three years
     
     

 (Reporting by Mridula Kumar in Bengaluru)
 ((Mridula.Kumar@thomsonreuters.com;))