Healthcare, automotive verticals drive strong revenue growth

Company
12 Mar 2024
5 Min read 
  • Syrma SGS Technology reported strong revenue growth in 3QFY24, driven by healthcare and automotive verticals.
  •  EBITDA margins declined due to an unfavorable business mix and revenue spillover.
  •  EBITDA and adjusted PAT declined YoY in 3QFY24.
  •  The order book stood at INR45b as of Dec23, with automotive and consumer segments accounting for a significant portion.
  •  The company expects strong revenue growth in FY25 and plans to increase exports.
  •  Capex of INR2.4b was incurred in 9MFY24, with additional spending expected in 4QFY24.
  •  The company has reduced its EBITDA and EPS estimates for FY24/FY25/FY26.
  •  Retain BUY rating with a target price of INR720.
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