Syrma SGS Technology: Motilal Oswal CONFIRMS BUY! Massive 4x Growth Spikes Target to ₹960!

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Updated on 13 Nov 2025, 07:33 am

Motilal Oswal's latest research report on Syrma SGS Technology reveals an impressive financial performance for the second quarter of fiscal year 2026 (2QFY26). The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged by approximately 62% year-over-year (YoY), and its EBITDA margin expanded by 150 basis points YoY. This improvement is attributed to a favorable business mix and enhanced operating leverage. Revenue experienced a significant 38% YoY jump, primarily propelled by a substantial fourfold increase in the IT and Railways segments, with the Consumer (35% YoY) and Auto (28% YoY) businesses also showing robust growth.

The outlook for Syrma SGS Technology remains highly optimistic. Motilal Oswal estimates a Compound Annual Growth Rate (CAGR) of 31% for revenue, 44% for EBITDA, and 51% for adjusted Profit After Tax (PAT) between FY25 and FY28. Driven by sustained strong revenue growth and margin expansion, the brokerage reiterates its BUY rating on the stock and has set a price target (TP) of INR 960. This target is based on a valuation of 35 times estimated earnings per share (EPS) for September 2027.

Impact: This report provides a strong bullish signal for Syrma SGS Technology, potentially driving investor confidence and stock price appreciation. The clear growth drivers and attractive price target suggest significant upside potential. Rating: 9/10

Terms Explained: • EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures operating performance before financing and accounting decisions. • YoY: Year-over-Year. Compares current period results to the same period in the prior year. • FY: Fiscal Year. A 12-month accounting period, typically April 1 to March 31 in India. • CAGR: Compound Annual Growth Rate. The average annual growth rate over a period of years. • PAT: Profit After Tax. Net profit remaining after all taxes are deducted. • EPS: Earnings Per Share. A company's profit divided by the number of outstanding shares. • TP: Price Target. The future stock price predicted by an analyst.