This EMS stock engaged in the business of integrated services and solutions to the original equipment manufacturers is in focus after the company was chosen by MSI to manufacture laptops locally.
Price Action
With a market capitalization of Rs. 10,164.81 Crores, the shares of Syrma SGS Technology Limited touched a day’s high of Rs. 602.35 per equity share, up 1.27 percent. The stock reiterated from the day’s high and was trading at Rs. 570.55 which is 4.07 percent lower than its previous day’s close price of Rs. 594.75. The stock delivered a negative return of 6.85 percent and underperformed the Nifty Index in the past year.
What Happened
The company’s stock was in focus after Syrma announced a collaboration with MSI as its manufacturing partner to produce laptops in India. With this partnership, Syrma will produce the laptops in the Chennai Facility. MSI will transfer technology and Syrma will manufacture products MSI premium products for which they will cater to the Indian Market and promote Make in India.
Management Commentary
Commenting on the announcement, John Hung, India NB General Manager from MSI “India has always been a key market for MSI, and as we continue to expand our presence here, it’s important for our products to remain globally competitive while being locally produced. With this vision, our partnership with Syrma SGS marks a significant step forward in our ‘Make in India’ initiative, bringing our fan-favorite laptops closer to Indian consumers. Syrma SGS’s proven expertise in high-quality, scalable manufacturing makes them the ideal partner to help us meet the growing demand for MSI products in India.”
The CEO of Syrma SGS Technology Limited, Satendra Singh said, “Being MSI’s Indian manufacturing partner, this collaboration is a testament to our commitment to the Make in India initiative. It not only bolsters our IT hardware manufacturing portfolio but also underscores our ability to deliver high-quality, innovative solutions that meet the needs of global leaders like MSI. Together, we aim to bring cutting-edge, locally produced laptops to Indian consumers while setting new benchmarks for quality and innovation in the industry.”
About the Company
Syrma SGS Technology Limited was founded in 2004 and is based in Chennai. They specialize in Electronics Manufacturing Services (EMS). The company offers a range of services which includes product design, prototyping, PCB assembly, and repair services. Their business model focuses on co-developing solutions with original equipment manufacturers (OEMs) across diverse industries such as automotive, healthcare, and telecommunications. The company is an IT Hardware PLI-approved manufacturer with 12 state-of-the-art facilities in India, Syrma SGS focuses on high-mix, low-volume precision manufacturing and is committed to quality and innovation. The company aims to optimize production efficiency while providing tailored solutions that meet client specifications and market demands.
Financials & Ratios
Its Revenue from operations improved by 17 percent year on year from Rs. 712 Crores in Q2FY24 to Rs. 833 Crores in Q2FY25, accompanied by a profit of Rs. 31 Crores to a profit of Rs. 40 Crores.
In terms of Return ratios, the return on equity (RoE) stood at 7.89 percent and a return on capital employed (RoCE) of 9.87 percent in FY24. They have a debt-to-equity ratio of 0.32 as of FY24.
Shareholding Pattern
As of September 2024, the promoters of Syrma SGS Technology held a share of 46.89 percent, Foreign Institutional Investors (FII) held around 10.31 percent, Domestic Institutional Investors (DII) held around 6.45 percent and the remaining 36.35 percent was held by Public Investors.
Written by Santhosh S
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