Syrma SGS Technology shares jumped more than 13% after Motilal Oswal recommended a buy rating on the stock with a target price of Rs 550.
In its recent research report, Motilal Oswal highlighted Syrma’s robust operating performance for the second quarter of FY25. The company achieved a notable expansion in EBITDA margins, increasing by 160bp YoY, driven by effective operational leverage and an improved business mix. Notably, the low-margin consumer segment decreased to 33% in Q2 FY25, down from 35% in the same period last year, while the share from exports rose, supporting higher 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).”
As of 12:34 pm, Syrma SGS Technology shares were trading 12.48% higher at Rs 486.10 on the NSE.
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