Syrma SGS Technology stock soars 34%, dazzles on debut

 

Shares of Syrma SGS Technologies (Syrma) soared 34 per cent to Rs 295 against its issue price of Rs 220 per share on debut in Friday’s intra-day trade. The stock of industrial electronics company listed at Rs 262, a 19 per cent premium when compared to its issue price on the BSE. On NSE, the stock started trading at Rs 260.

                                                       Syrma is one of the fastest growing electronics system design and manufacturing companies. It is engaged in the turnkey electronics manufacturing services (EMS). The company has a large product portfolio, which includes printed circuit boards, RFIDS, electromagnetic, electromechanical parts and other products such as SSDs, USB flash drives, etc. Its products are primarily focused towards end-use industries such as automotive, healthcare, IT, industrial appliances and others.

                                     “Syrma’s good listing can be attributed to positive market sentiments, outstanding prospects, and a good response from the investors. With a huge focus on R&D-based innovation and an experienced management team, the company has managed to enter into various growing segments like PCBA, Radio Frequency Identification (RFID), Electromagnetic and electromechanical parts, and other information technology-related products,” said Santosh Meena, Head of Research, Swastika Investmart post listing of Syrma.      

                                                The company’s geographically diversified manufacturing locations and the business model which starts from product concept design & focuses on every segment of the overall industry value chain give them a competitive advantage over other players. The issue was priced at a P/E of ~65X (Based on the Restated Consolidated Financial Information, RHP). However, we believe that the company deserves this premium multiple due to its phenomenal growth prospects, the brokerage firm added.