NSE: SYRMA CMP: Rs 1368.30 P/E: 82.31x ROCE: 16.73% 6M Ret: +86.63% Div Yld: 0.11% ATH: Rs 1517.80
Key Performance Indicators
Syrma SGS Tech. trades at Rs 1368.30 on NSE (SYRMA), with a market capitalisation of Rs 26423.51 crore. The price-to-earnings ratio is 82.31x. Return on capital employed stands at 16.73%. The six-month return is +86.63%. Quarterly net profit is Rs 119.23 crore (+55.84% year-on-year change). Quarterly sales stand at Rs 1465.01 crore (+58.49% year-on-year). The dividend yield is 0.11%. The all-time high is Rs 1517.80, 10.9% above the current price.
Highlights
Syrma SGS Tech. has delivered a six-month return of 86.63%, with a market capitalisation of Rs 26423.51 crore at the current price of Rs 1368.30. The all-time high of Rs 1517.80 sits 10.9% above the current price, indicating the stock has corrected from its historical peak and offers headroom for appreciation toward that level. The company's ROCE of 16.73% — above the 15% quality threshold, indicating the business generates meaningful returns above the cost of capital — is a key distinguishing fundamental metric.
The P/E of 82.31x carries a moderate growth premium relative to the Indian market average, pricing in above-economy earnings growth expectations. The dividend yield of 0.11% provides a meaningful income component — a signal of cash generation capability and management's willingness to return capital. The technology sector tailwinds — India's digital infrastructure expansion, electronics manufacturing PLI, and global technology demand — provide structural support for sustained revenue and earnings growth.
Business Overview
Syrma SGS Technology is an electronics manufacturing services (EMS) and ODM (original design manufacturing) company producing printed circuit board assemblies, electronic sub-systems, and finished electronic products for industrial, medical, defence, and consumer electronics clients. EMS companies provide outsourced electronics manufacturing to OEM brands that prefer to focus on design and marketing rather than manufacturing. India's electronics manufacturing PLI scheme has significantly accelerated investment in the EMS sector, with Syrma positioned as one of the leading beneficiaries.
The quarterly profit of Rs 119.23 crore growing 55.84% on revenue of Rs 1,465.01 crore growing 58.49% year-on-year demonstrates a business scaling rapidly across both revenue and profit dimensions. At Rs 26,423.51 crore market cap with a P/E of 82.31 times and ROCE of 16.73%, Syrma SGS has mid-to-large-cap institutional coverage. The six-month return of 86.63% and the all-time high of Rs 1,517.80 — Rs 149.50 above the current price of Rs 1,368.30 — indicate meaningful headroom to the historical peak.
Financial Analysis
Syrma SGS Tech.'s most recent quarterly financial results show revenue of Rs 1465.01 crore (+58.49% year-on-year) and net profit of Rs 119.23 crore (55.84% year-on-year variation). Profit growth meaningfully exceeding revenue growth indicates improving profitability margins — a positive structural signal if it reflects genuine cost efficiency or product mix improvement rather than temporary factors.
The ROCE of 16.73% is the primary quality indicator for this business. At 16.73%, the business crosses the threshold that Warren Buffett famously cited as a hallmark of exceptional businesses — generating returns on capital substantially above typical cost of capital levels, creating economic value with each rupee reinvested.
At Rs 26423.51 crore — a large-cap entity with institutional research coverage — Syrma SGS Tech. benefits from analyst following, regular earnings estimate updates, and meaningful daily trading liquidity. Institutional research reports and management conference call transcripts are accessible through financial research platforms and provide additional depth beyond exchange filings.
Investor Highlights
The investment case for Syrma SGS Tech. rests on the combination of a 16.73% ROCE — indicating a capital-efficient business with sustainable competitive advantages — and a demonstrated revenue and earnings growth trajectory that supports the current P/E of 82.31x. The combination of solid ROCE with consistent earnings growth creates a compounding engine where both business scale and per-share earnings grow simultaneously, supporting share price appreciation over a full investment cycle.
With the current price 10.9% below the all-time high of Rs 1517.80, there is established headroom toward the historical peak. If fundamental performance continues to deliver quarterly profit growth and improving ROCE, the stock has a reference target for re-rating toward the all-time high level.
The dividend yield of 0.11% provides a foundational income return that is independent of capital appreciation — a meaningful characteristic for investors who value income alongside growth. A dividend-paying company with a positive ROCE above 15% is distributing cash it does not need for reinvestment at attractive rates, implying the business generates more cash than its optimal reinvestment requirements. Investors should access the company's latest annual report and quarterly results on the BSE/NSE portal for current financial data and management commentary on the growth outlook.
Frequently Asked Questions
Q: What does Syrma SGS Tech. do and why has it delivered a 86.63% six-month return?
A: Syrma SGS Tech. operates in India's technology sector. The 86.63% six-month return reflects a combination of sector-level tailwinds, improving quarterly financial performance — quarterly profit growing 55.84% and revenue growing 58.49% year-on-year — and market re-rating of the company's growth and quality profile. Specific business details and catalysts are documented in BSE/NSE exchange filings.
Q: What does the ROCE of 16.73% indicate about Syrma SGS Tech.'s business quality?
A: Syrma SGS Tech.'s ROCE of 16.73% measures pre-tax profit generated per rupee of total capital employed. At 16.73%, the business consistently generates returns above the typical cost of capital for Indian companies — a hallmark of businesses with durable competitive advantages, whether from technology, relationships, scale, or regulatory positioning. Tracking ROCE over multiple quarters provides a leading indicator of business quality improvement or deterioration.
Q: How does the P/E of 82.31x compare to fundamentals for Syrma SGS Tech.?
A: The P/E of 82.31x should be assessed in conjunction with the earnings growth rate and ROCE. At 82.31x, the stock carries a moderate premium relative to the market average of 20–25x, compensated in part by the ROCE of 16.73% and the quarterly earnings growth of 55.84%.
Q: What is Syrma SGS Tech.'s all-time high and how far is the current price from it?
A: Syrma SGS Tech.'s all-time high is Rs 1517.80. The current price of Rs 1368.30 is 10.9% below the all-time high, offering potential headroom for appreciation if fundamental performance supports continued market re-rating. The all-time high provides a reference ceiling that informs sentiment and potential price target discussion, though fundamental value — determined by earnings, ROCE, and growth — is the primary determinant of sustainable price levels.
Q: Where can investors access Syrma SGS Tech.'s official financial data and disclosures?
A: Syrma SGS Tech.'s quarterly results, annual reports, investor presentations, shareholding patterns, and all material corporate announcements are filed with NSE and BSE and are freely accessible through the exchange filing portals at nseindia.com and bseindia.com. SEBI listing regulations mandate timely disclosure of all financial results and material developments. These filings are the primary source of verified financial and operational data for investment analysis.