Shares of Syrma SGS Technology Ltd. declined the most in over seven months on Wednesday after its first-quarter profit missed analysts' estimates.
The company's consolidated net profit rose 65% year-on-year to Rs 28.3 crore in the quarter ended June, according to an exchange filing on Tuesday. However, it missed the consensus of analyst estimates of Rs 36.9 crore that Bloomberg compiled.
The company also entered the electronic medical devices market after acquiring a 51% stake in Johari Digital Healthcare Ltd. for Rs 257.5 crore, which includes milestone-based deferred payments not exceeding Rs 28 crore.
Syrma SGS Technology Q1FY24 (Consolidated, YoY)
Revenue up 54% at Rs 601.3 crore. (Bloomberg estimate: Rs 570.3 crore).
Ebitda up 10% at Rs 36.9 crore. (Bloomberg estimate: Rs 51.30 crore).
Ebitda margin at 6.1% versus 8.6%. (Bloomberg estimate: 8.99%).
Net profit rose 65% to Rs 28.3 crore. (Bloomberg estimate: Rs 36.9 crore).
Shares of the company fell as much as 6.47%, the most since Dec. 23, 2022, before paring loss to trade 0.52% lower at 10:03 a.m. This compares with a 0.54% decline in the NSE Nifty 50.
The stock has risen nearly 75.8% year-to-date. Total traded volume stood at 7.7 times its 30-day average. The relative strength index at 68.4.
All eight analysts tracking the company maintain a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month price target given by analysts implies a potential upside of 1.3%.
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