India's Syrma SGS Technology gains on steady earnings growth potential

Syrma SGS Technology

07/03/2024 05:44

** Shares of Syrma SGS Technology  SYRM.NS  up 3% at 535
rupees, trimming gains after jumping 9.65% to 569.95 rupees in
early trade
    ** Rise after CLSA initiates coverage of stock, citing
strong runway for growth
    ** Diversified electronics manufacturing services company
could see 36% revenue CAGR between fiscal 2023 and 2026,
forecasts CLSA
    ** SYRM's plans to enter new segments like lighting,
aerospace and healthcare, inorganic expansion plans, rise in
addressable market and strong demand environment augur well for
company - brokerage
    ** CLSA's target price of 645 rupees implies a 24% upside
potential for shares in next 12 months
    ** Mean recommendation of 11 analysts, excluding CLSA, is
equivalent to "buy"; median target price is 602.50 rupees - LSEG
data
    ** Including day's gains, stock down 20% in 2024 so far
after rising 139% previous year - LSEG data

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))