Syrma SGS Technology Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financials and Technical Indicators

Syrma SGS Technology, a midcap company in the electronics components industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.03 times.
In terms of financial performance, Syrma SGS Technology has shown growth in its PBT LESS OI(Q) at Rs 40.65 crore, which has increased by 56.4%, and its PAT(Q) at Rs 36.24 crore, which has grown by 46.1%. Additionally, the company's NET SALES(9M) have also seen an increase, reaching Rs 3,126.72 crore.

From a technical standpoint, the stock is currently in a Mildly Bullish range, with an improved trend from Sideways on 08-Nov-24. The Bollinger Band and OBV technical factors are also Bullish, indicating a positive outlook for the stock.

The majority shareholders of Syrma SGS Technology are its promoters, and the company has a ROCE of 8.7, which suggests an expensive valuation with a 5.3 Enterprise value to Capital Employed. However, the stock is currently trading at a discount compared to its average historical valuations.

Despite generating a return of 5.52% in the past year, the company's profits have fallen by -20.6%. This underperformance in the market is reflected in the stock's returns, which are much lower than the market (BSE 500) returns of 30.56%.

Overall, while Syrma SGS Technology shows potential for growth with its strong financials and technical indicators, it is currently facing challenges in terms of profitability and market performance. Investors may want to hold onto the stock for now and monitor its progress in the future.