Unfavorable business mix continues to hurt margins

Company
14 May 2024
5 Min read 
  • Syrma SGS Technology's 4QFY24 results update includes sector, estimates, TP, and rating changes.
  •  Unfavorable business mix continues to impact margins, with operating performance below estimates.
  •  Revenue grew 67% YoY in 4QFY24, but EBITDA margins declined 200bp YoY.
  •  EPS estimates for FY25/FY26 have been cut by ~9%/15% due to performance and business mix.
  •  The company retains a BUY rating with a TP of INR535 (35x FY26E EPS).
  •  The order book stood at ~INR45b as of Mar24, with strong growth expected in exports and capex plans.
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