Prabhudas Lilladher has upgraded Syrma SGS Technology to 'Accumulate', citing a recent share price correction and improved growth guidance. The company lifted its FY27 revenue growth forecast to 40-45%, backed by a strong order book of Rs 74.2 billion.
Brokerage firm Prabhudas Lilladher has upgraded its rating on Syrma SGS Technology to 'Accumulate' from 'Hold', setting a target price of Rs 1,788 per share. This shift in stance follows a recent correction in the company's share price, which analysts view as a more favorable entry point for investors.
The upgrade is primarily driven by the company’s strong operational performance and a more optimistic outlook for future growth. In its latest update, Syrma SGS Technology increased its revenue growth guidance for the 2027 fiscal year to 40-45%, up from its previous projection of 30-35%. The company is actively working toward achieving a significant milestone of USD 1 billion in revenue by fiscal year 2028.
Driving this growth is a robust order book, which stood at Rs 74.2 billion as of September 2026. This order visibility is anchored by demand in key segments, including automotive, consumer electronics, and industrial sectors. The company’s second-quarter performance also showed momentum, with revenue growing 73.6% on a year-on-year basis, reaching Rs 19.8 billion.
While revenue growth targets have been raised, investors may want to monitor the company’s profit margins. Syrma SGS Technology has provided EBITDA margin guidance in the range of 10.0% to 10.5% for FY27, with expectations that these margins may expand to 10.5%–11.0% by FY28. The ability to manage costs while expanding production is essential, especially as the company navigates potential risks such as component price volatility and supply chain constraints inherent in the electronics manufacturing services sector.
The brokerage’s target price of Rs 1,788 is based on a 45x multiple of the projected earnings for September 2028. Moving forward, the company’s progress toward its revenue targets, its success in executing on the large order book, and its ability to maintain or improve profitability amidst sector-wide demand shifts will be important areas for market participants to track.