Syrma SGS Technology shares rose more than 3% in early trade on Thursday after HSBC initiated coverage with a "Buy" rating and a target price of Rs 1,750, citing growth prospects in India's electronics manufacturing services (EMS) industry.
The stock traded at Rs 1,424.4 apiece at around 9:27 a.m. on the NSE, up 58.2 points from its previous close of Rs 1,366.2. It opened at Rs 1,410.4.
The brokerage expects Syrma SGS Technology to benefit from the rapid expansion of India's EMS market, supported by backward integration and inorganic growth opportunities. The positive brokerage initiation lifted investor sentiment as the market assessed the company's prospects within the sector.
HSBC Sees 27% Upside
HSBC initiated coverage on the stock with a "Buy" rating and set a target price of Rs 1,750 per share. The target implies an upside potential of about 27% from the stock's July 8 closing price of Rs 1,366.2.
The brokerage said the valuation reflects the company's growth potential. It noted that Syrma SGS Technology trades at a two-year forward price-to-earnings multiple of 53 times and a price/earnings-to-growth ratio of 1.5 times.
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Industry Growth Supports Outlook
HSBC said Syrma SGS Technology is well placed to benefit from its manufacturing capacity, diversified customer base and experience as an original design manufacturer. The brokerage noted that the company has expanded from assembling printed circuit boards to manufacturing the boards, in a market where imports account for about 90% of demand.
The brokerage also cited favourable industry trends. It said India's EMS industry is expected to grow at a compound annual growth rate of 27% between 2024 and 2029. HSBC added that government support, including manufacturing incentives and the proposed allocation of $13 billion under India Semiconductor Mission 2.0, should support the sector's expansion.
CEO Change Announced
Separately, the company informed exchanges on June 26 that it had appointed Jaidit Singh Brar as its chief executive officer. He succeeds Satendra Singh, who has taken up the role of senior operating director.
Stock Performance
The latest gains add to the stock's strong performance over the past year. Syrma SGS Technology has risen more than 119% during the period, while the benchmark Nifty 50 has declined 2.21%.
Since the start of 2026, the stock has gained more than 98%, even as the broader market has remained volatile.
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