Exciting Surge! India Ratings Awards ‘IND A1+’ to Syrma SGS, Stock Soars 7% | Market News

Syrma SGS Technology Shares Up After Positive Rating

Syrma SGS Technology’s share price increased 3.77% to Rs 456.85 on the BSE as of 2:23 PM, following a positive rating from India Ratings and Research, a Fitch Group Company. The rating upgraded Syrma SGS Technology’s Commercial Paper to ‘IND A1+’ for Rs 110 crore, indicating a strong degree of safety for timely financial payments.

The stock surged by 7.3% intraday, reaching a high of Rs 472.5. The BSE Sensex, in comparison, was only up by 0.04% at 84,945.10 around the same time.

"We wish to inform you that India Ratings and Research (Ind-Ra) has rated ‘IND A1+’ for the Rs 110 crore Commercial Paper Program of Syrma SGS Technology Limited," the company announced in a stock exchange filing.

India Ratings highlighted the company’s significant presence in the original design manufacturing market, providing high-margin designing and engineering services. Despite a decline in the proportion of revenue from ODM services, the company expects this to grow due to new engineering projects.

Syrma SGS’s revenue grew at a compound annual growth rate of about 115% to Rs 2,048.4 crore from FY21 to FY23. This growth was driven by organic expansion and strategic acquisitions.

In Q1 FY25, the company reported a profit after tax of Rs 20.3 crore on revenue of Rs 1,159.9 crore, compared to Rs 28.32 crore and Rs 601.30 crore respectively, in the same quarter last year. The EPS for the June quarter decreased to Rs 1.09 from Rs 1.61 year-on-year.

India Ratings anticipates strong demand for Syrma SGS’s products, supported by favourable regulatory policies and global shifts in manufacturing towards India. However, any negative changes in revenue composition or regulatory requirements could impact this positive outlook.

Syrma SGS Technology, based in Chennai, specializes in electronics manufacturing services, offering integrated solutions from concept to production for original equipment manufacturers.

Over the past year, Syrma SGS Technology shares have decreased by 19%, contrasting with the BSE Sensex’s 28.6% increase.

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