Syrma SGS Technology Shares Surge 10% to Record High Following Joint Venture
Syrma SGS Technology soars 10%; stock hits new high after gap of 5 months
Business Standard
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Syrma SGS Technology's stock price surged 10% to an all-time high of ₹988 after announcing a joint venture with Italy's Elemaster S.p.A Tecnologie Elettroniche. The partnership aims to enhance capabilities in the electronics manufacturing services sector, with a revenue target of ₹200 crore for FY27.
- 01Syrma's stock hit an all-time high of ₹988, rising 10% in a single day.
- 02The surge follows the completion of a joint venture with Elemaster, with Syrma holding a 60% stake.
- 03The joint venture aims for a revenue target of ₹200 crore for FY27, with peak potential of ₹400 crore by FY28.
- 04India's electronics manufacturing services sector is experiencing significant growth, driven by rising exports.
- 05Syrma anticipates a 30% growth rate in revenue for FY27, targeting ₹5,000 crore in total revenue.
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Syrma SGS Technology's share price reached an all-time high of ₹988, climbing 10% during intra-day trading on the Bombay Stock Exchange (BSE). This increase follows a substantial 15% rise over two days, attributed to the completion of a joint venture with Italy-based Elemaster S.p.A Tecnologie Elettroniche. Syrma will hold a 60% stake in the joint venture, which aims to enhance its capabilities in the electronics manufacturing services (EMS) sector. The partnership is expected to generate revenue of ₹200 crore for FY27 and has a peak revenue potential of ₹400 crore by FY28, according to ICICI Securities. The EMS sector in India is benefiting from a robust export growth trend, with electronics exports projected to rise significantly, supported by government incentives and global supply chain shifts. Syrma's management anticipates a 30% growth rate in revenue for FY27, targeting ₹5,000 crore in total revenue, with export revenues expected to reach ₹1,100 crore. The company is focusing on high-margin businesses and has a diversified order book worth ₹6,400 crore, indicating strong revenue visibility.
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The surge in Syrma's stock price reflects growing investor confidence and potential job creation in the electronics manufacturing sector, driven by increased exports and strategic partnerships.
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