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Investing.com - JPMorgan has initiated coverage on Syrma SGS (SIX:SGSN) Technology (NSE:SYRMA) with an Overweight rating and a price target of INR800.00, representing a potential upside of 30%.
The investment bank expects Syrma to be the third-fastest growing company in its coverage universe, projecting a 31% revenue compound annual growth rate (CAGR) over fiscal years 2025-2028, with EBITDA margins rising to 9% by FY28.
JPMorgan forecasts that growth will be primarily driven by the Industrial and Automotive segments, with demand coming from energy meters, power electronics, electric vehicles, and information and communications technology.
The firm notes that Syrma also benefits from the trend of increasing grid investments across the region, particularly through exposure to products such as smart meters in the industrial sector.
JPMorgan values the stock at 39 times June 2027 earnings derived from discounted cash flow analysis, assuming a 26% revenue CAGR over the next decade, and considers it attractive at a price-to-earnings growth ratio of 1.9.
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