Syrma SGS Technology’s shares surged over 21% this week after Motilal Oswal issued a strong buy rating with a target price of ₹550. This significant uptick is attributed to the company’s impressive operating performance for Q2 FY25.
In its latest research report, Motilal Oswal noted a remarkable expansion in Syrma’s EBITDA margins, which increased by 160 basis points year-over-year. This improvement was driven by effective operational leverage and a better business mix. Notably, the low-margin consumer segment’s contribution decreased to 33%, down from 35% a year ago, while the share from exports rose, further enhancing overall margins.
Motilal Oswal stated, “We estimate a CAGR of 35%/44%/53% in revenue/EBITDA/adj. PAT over FY24-27, driven by strong revenue growth and margin expansion. We reiterate our BUY rating on the stock with a TP of INR550 (30x Sep’26E EPS).”
On Friday, Syrma SGS Technology’s stock opened at ₹499, reached a high of ₹527.35 and dipped to a low of ₹495.
