Check Before You Invest : Syrma SGS Technology Ltd

Snapshot

Q.1 Which industry/sub-sector does Syrma SGS Technology Ltd belong to?

Syrma SGS Technology Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.

Q.2 Is Syrma SGS Technology Ltd a good quality company?

Syrma SGS Technology Ltd is a average quality company, based on a somewhat consistent 7-year financial track record.

Q.3 Is Syrma SGS Technology Ltd undervalued or overvalued?

Syrma SGS Technology Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Syrma SGS Technology Ltd a good buy now?

Syrma SGS Technology Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Syrma SGS Technology Ltd?

Syrma SGS Technology Ltd revenue growth is 24.2% for FY-2025, which is below its 5-year CAGR of 41.82%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Syrma SGS Technology Ltd?

Syrma SGS Technology Ltd Return on capital employed is 7.15% for FY-2025, which is below its 5-year historical median of 8.62%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Syrma SGS Technology Ltd?

Syrma SGS Technology Ltd Return on Asset is 2.42%, which is below its 5-year historical median of 3.47%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Syrma SGS Technology Ltd?

Syrma SGS Technology Ltd Return on equity is 5.44% for FY-2025, which is in line with its 5-year historical median of 5.53%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Syrma SGS Technology Ltd?

Syrma SGS Technology Ltd Cash conversion cycle is 33 days, below its 5-year historical median of 56 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.69	0.72
ROE	5.44	5.53
ROCE	7.15	8.62
Cash Conversion Cycle	33 days	56 days

Q.6 Gross Profit margin of Syrma SGS Technology Ltd?

Syrma SGS Technology Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.3% for FY-2025, which is below its 5-year median of 9.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Syrma SGS Technology Ltd?

Syrma SGS Technology Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.41% for FY-2025, which is below its 5-year median of 7.23% indicating decreasing margins.

Q.8 Net Profit Margin of Syrma SGS Technology Ltd?

Syrma SGS Technology Ltd Net Profit Margin is 3.5% for FY-2025, is below with its 5-year median of 4.74%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.3	9.1
Operating Profit Margin	6.41	7.23
Net Profit Margin	3.5	4.74

Q.9 Debt to Equity ratio of Syrma SGS Technology Ltd?

Syrma SGS Technology Ltd Debt-to-Equity ratio is 0.36, which is above with the industry average of 0.33, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Syrma SGS Technology Ltd?

Syrma SGS Technology Ltd Debt to cash flow from operations is 6.14, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Syrma SGS Technology Ltd?

Promoters hold 42.28% of the Syrma SGS Technology Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Syrma SGS Technology Ltd vs industry peers?

Syrma SGS Technology Ltd revenue CAGR is 41.82%, compared to the industry median CAGR of 9.26%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	24.2	9.3
Gross Profit Growth	150.9	14.1
Operating Profit Growth	323.5	15.2
Net Profit Growth	300	14.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.69	0.83
ROE	5.44	8.53
ROCE	7.15	9.68
Cash Conversion Cycle (days)	32.72	129

Valuation & price assessment

Q.1 Stock return of Syrma SGS Technology Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 48.53% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	48.5%	111.3%

Q.3 Valuation ratios of Syrma SGS Technology Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	85.03	163.90	37.27
Price to Book	6.42	5.77	3.80
Price to Sales	5.67	5.80	4.14
EV to EBITDA	47.46	75.37	22.41

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