Syrma SGS Technology Ltd - Stock Valuation and Financial Performance

BSE: 543573 | NSE: SYRMA | Electronics - Components | Small Cap

Syrma SGS Technology Share Price

471 -2.85 -0.60%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Syrma SGS Technology

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Syrma SGS Technology stock performance -

mw4me loader
P/E Ratio (SA):
188.71
Market Cap:
8,255.9 Cr.
52-wk low:
251.1
52-wk high:
705

Is Syrma SGS Technology Ltd an attractive stock to invest in?

1. Is Syrma SGS Technology Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Syrma SGS Technology Ltd is a below average quality company.

2. Is Syrma SGS Technology Ltd undervalued or overvalued?

The key valuation ratios of Syrma SGS Technology Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Syrma SGS Technology Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Syrma SGS Technology Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Syrma SGS Technology:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Syrma SGS Technology Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 17%29.9%12.5%6.2%5.3%-
Value Creation
Index
0.31.2-0.1-0.6-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3543974386461,1361,536
Sales YoY Gr.-12.2%10.4%47.5%75.7%-
Adj EPS 2.86.23.41.92.92.5
YoY Gr.-120%-44.5%-43.6%51.3%-
BVPS (₹) 8.114.331.539.38281.5
Adj Net
Profit
19.943.725.826.551.744
Cash Flow from Ops. 1070.823.913.3-60.7-
Debt/CF from Ops. 9.41.22.410-4.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANA41.9%75.7%
Adj EPS NANA-22%51.3%
BVPSNANA78.8%108.7%
Share Price - - - 81.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
34.75515.26.85.23
Op. Profit
Mgn %
11.917.511.297.23.7
Net Profit
Mgn %
5.6115.94.14.62.8
Debt to
Equity
1.70.80.20.30.2-
Working Cap
Days
020021218229389
Cash Conv.
Cycle
0475757539

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 41.94%

Sales growth is good in last 4 quarters at 78.66%

Return on Equity has declined versus last 3 years average to 3.00%

Net Profit has been subdued in last 3 years -22.03%

Latest Financials - Syrma SGS Technology Ltd.

Standalone Consolidated
TTM EPS (₹) 2.5 6.5
TTM Sales (₹ Cr.) 1,536 2,699
BVPS (₹.) 81.5 89.5
Reserves (₹ Cr.) 1,270 1,412
P/BV 5.70 5.19
PE 188.71 71.98
From the Market
52 Week Low / High (₹) 251.05 / 705.00
All Time Low / High (₹) 248.30 / 705.00
Market Cap (₹ Cr.) 8,256
Equity (₹ Cr.) 177.6
Face Value (₹) 10
Industry PE 89.1

Management X-Ray of Syrma SGS Technology:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Syrma SGS Technology

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'19Mar'20Mar'21Mar'22Mar'23
Sales3543974386461,136
Operating Expenses 3123283905881,053
Manufacturing Costs4354567597
Material Costs219227282439865
Employee Cost 2224264055
Other Costs 2823263436
Operating Profit 4269485882
Operating Profit Margin (%) 11.9%17.5%11.0%9.0%7.2%
Other Income 386838
Interest 8106516
Depreciation 1010121317
Exceptional Items 0-6000
Profit Before Tax 2752364886
Tax 6881731
Profit After Tax 2144293155
PAT Margin (%) 5.9%11.1%6.5%4.7%4.8%
Adjusted EPS (₹)3.06.23.82.23.1
Dividend Payout Ratio (%)0%0%0%0%48%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 571022385401,449
Share Capital 111138177
Reserves 561012374031,272
Minority Interest00000
Debt877749130248
Long Term Debt392424386
Short Term Debt485324127162
Trade Payables91107115148353
Others Liabilities 518558134162
Total Liabilities 2863714609532,212

Fixed Assets

Gross Block9596103153306
Accumulated Depreciation1010223957
Net Fixed Assets868681114248
CWIP 0004025
Investments 0089404461
Inventories646877115348
Trade Receivables99116128172231
Cash Equivalents 1435301136
Others Assets23655597863
Total Assets 2863714609532,212

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 10712413-61
PBT 2752364886
Adjustment 202014152
Changes in Working Capital -295-16-37-129
Tax Paid -8-7-10-13-20
Cash Flow From Investing Activity -22-29-94-388-889
Capex -22-29-6-72-95
Net Investments 00-89-3-771
Others 000-313-23
Cash Flow From Financing Activity 13-2168355970
Net Proceeds from Shares 0033272843
Net Proceeds from Borrowing 8-126-2683
Interest Paid -4-8-5-3-13
Dividend Paid 00000
Others 903411356
Net Cash Flow 121-3-1920
PARTICULARSMar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)36.6655.2316.847.865.53
ROCE (%)23.536.7117.6510.868.62
Asset Turnover Ratio1.241.211.050.910.72
PAT to CFO Conversion(x)0.481.610.830.42-1.11
Working Capital Days
Receivable Days102991028565
Inventory Days6661615474
Payable Days152159143109106

Syrma SGS Technology Ltd Stock News

Syrma SGS Technology Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Syrma SGS Technology on 28-Mar-2024 16:01 is ₹471.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Syrma SGS Technology stood at ₹8,255.9.
The latest P/E ratio of Syrma SGS Technology as of 28-Mar-2024 16:01 is 188.7.
The latest P/B ratio of Syrma SGS Technology as of 28-Mar-2024 16:01 is 5.70.
The 52-week high of Syrma SGS Technology is ₹705.0 and the 52-week low is ₹251.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Syrma SGS Technology is ₹1,536 ( Cr.) .

About Syrma SGS Technology Ltd

Syrma SGS Technology was incorporated as ‘Syrma Technology Private Limited’ pursuant to a certificate of incorporation dated August 23, 2004, issued by the Registrar of Companies, Maharashtra at Mumbai (RoC). Thereafter, pursuant to a resolution passed by Shareholders in the extraordinary general meeting held on August 28, 2021, the name of the company was changed from ‘Syrma Technology Private Limited’ to ‘Syrma SGS Technology Private Limited’, and consequently, a fresh certificate of incorporation dated September 14, 2021, was issued by the RoC to company. Thereafter, the Company was converted from a private limited company to a public limited company, pursuant to a resolution passed in the extraordinary general meeting of its Shareholders held on October 6, 2021, and the name of our Company was changed to Syrma SGS Technology Limited, and a fresh certificate of incorporation dated October 20, 2021, was issued to our Company by the RoC.

The company is a technology-focussed engineering and design company engaged in turnkey electronics manufacturing services (EMS), specialising in precision manufacturing for diverse end-use industries, including industrial appliances, automotive, healthcare, consumer products and IT industries. Among the large bouquet of EMS players in India, it is one of the fastest growing Indian-headquartered ESDM companies. The company has a track record of technical innovation which involves working with the engineering teams of its marquee customers, and over the years, it has evolved to provide integrated services and solutions to OEMs, from the initial product concept stage to volume production through concept co-creation and product realization. Its manufacturing infrastructure enables it to undertake a high mix of products with flexible production volume requirements. It is leaders in high mix low volume product management and is present in most industrial verticals. Further, it is one of the leading PCBA manufacturers in India, supplying to various OEMs and assemblers in the market. The company is also amongst the top key global manufacturers of custom RFID tags.

The company leverages its various strengths such as global sourcing capabilities and long-standing relationship with its vendors to consolidate and bring down the cost of raw materials and components, and explore alternative components, vendors, materials and processes to reduce product cost and bring products faster to market. Its concept co-creation initiative enables it to design products for its customers from the ideation / concept phase that they initiate and give them the preliminary prototypes for their testing and trials. It currently operates through 11 strategically located manufacturing facilities in north India (i.e. Himachal Pradesh, Haryana and Uttar Pradesh) and south India (i.e. Tamil Nadu and Karnataka). Its presence in these states enables it to efficiently cater to the requirements of its customers in north and south India.

Business area of the company

Syrma SGS Technology has been the preferred value creator for its customers over many years through innovative and efficient Electronic System Design and Manufacturing. It provides high-mix, flexible volume, precision OEM manufacturing. Its one-stop-solution electronics manufacturing services (EMS) includes product design, quick prototyping, PCB assembly, Box build, repair & rework and automatic tester development services. It also offers OEM solutions for RFID tags & inlays and high-frequency magnetic components. It serves global OEMs in 20+ countries and has supplied several hundreds of million units.

Key awards, accreditations or recognitions

  • 2013: Best SEZ (MSME: Computer Hardware) by Export Promotion Council for EOUs & SEZs at the EPCES Export Awards for 2010-11.
  • 2016: Third place in medium scale process under supervisor category at the 11th edition of CII Southern Region Kaizen Competition 2016.
  • 2018: First place in manufacturing sector medium scale in the 3rd edition of CII Southern Region Poka Yoke Competition 2018.
  • 2021: Certificate of merit in environment management (SME) for the year 2020-21 at the ELCINA awards.
  • 2021: 2nd prize in quality (SME) for the year 2020-21 at the 46th ELCINA awards.
  • 2021: 1st prize in business excellence (SME) for the year 2020-21 at the 46th ELCINA awards.
  • 2021: Certificate of appreciation for outstanding contribution in promotion of electronics (manufacturing IOT devices) awarded by the Ministry of Electronics and Information Technology
  • 2022: 1st place for Highest Employment in Electronics Hardware and Telecommunication at the Export Excellence Award 2019-20.

Major events and milestones

  • 2006: Set up manufacturing unit in the MEPZ-SEZ, Chennai.
  • 2010: Set up manufacturing facility in Bargur.
  • 2012: Commenced manufacturing beacons for vehicles.
  • 2014: Set up first research & development department in India.
  • 2016: Commenced manufacturing RFID tags.
  • 2018: Set up manufacturing facility in Bawal.
  • 2018: Set up ‘zone of autonomous creation’ to support the provision of rapid prototyping services.
  • 2018: Set up another manufacturing unit in the MEPZ-SEZ, Chennai.
  • 2019: Commenced offering repair and rework services.
  • 2020: Commenced the manufacture of controllers of the EV battery management systems.
  • 2020: Investment in Company by South Asia Growth Fund II Holdings LLC and South Asia EBT Trust.
  • 2021: Acquired SGS Tekniks Manufacturing Private Limited.
  • 2021: Acquired 75% of the issued and paid up share capital of Perfect ID India Private Limited.
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