Syrma SGS Technology shares rise for fifth straight session, hit record high; Here is why

Shares of Syrma SGS Technology, the Mumbai-based technology-focused engineering and design company, rose for a fifth straight session on Wednesday, November 12, to hit record high of ₹894 on the National Stock Exchange (NSE). On the BSE, Syrma SGS Technology shares rose as much as 7.7% to hit record high of ₹894.65.

In the last five trading sessions, the stock has advanced 14%, data from NSE showed.

Syrma SGS Technology shares came under buying interest after the electronics system design and manufacturing (ESDM) company, on Monday, said it has entered into a definitive agreement to acquire a 60% majority stake in Elcome Integrated Systems Private Limited (“Elcome”).

Elecome is a long-established Indian defence and maritime electronics company specialising in advanced electronic systems, integrated command solutions, and indigenous mission-critical technologies, Syrma SGS said.

The company added that the remaining 40% stake will be acquired in multiple tranches over the next three years, linked to performance and earn-out milestones.

"This acquisition marks a strategic step for Syrma SGS in advancing its presence in defence electronics, an area of increasing national priority. The combination brings together Elcome’s deep domain expertise with Syrma SGS’s established strengths in industrial-scale manufacturing, supply chain reach and product engineering, enhancing the shared ability to deliver high-reliability systems to defence customers," Syrma said in a press release.

Syrma SGS Technology Q2 earnings

Syrma SGS Technology on Monday, November 10, reported net profit of ₹66 crore in the second quarter of current financial year, marking an increase of 67% from ₹40 crore in the same period last year.

The company's revenue from operations in July-September period advanced 38% to ₹1,146 crore as against ₹833 crore in the year-ago period.

The company reported strong operational performance as its EBITDA (earnings before interest, taxes, depreciation and amortization) also known as operating profit rose 62% to ₹115 crore and its EBITDA margin improved 150 basis points to 10.06% from 8.52%.

About Syrma SGS Technology

Syrma SGS Technology is an electronics manufacturing services (EMS) company that offers integrated design and manufacturing solutions to global and domestic OEMs.

It was incorporated in 2004. The company is established after the merger of two engineering firms and provides end-to-end services from concept co-creation to volume production.

It operates across various sectors, including industrial, medical, automotive, and defence, and its in-house magnetics component manufacturing provides a competitive advantage for customers in the power supply domain.

As of 10:09 am, Syrma SGS Technology shares traded 3.74% higher at ₹862, outperforming the NIFTY Smallcap 250 index which was up 0.43%.