Syrma SGS shares surged 5.3% to hit an intraday high of ₹1,439 on Thursday, July 9, following the government's announcement of customs duty exemptions. The government announced the exemption of customs duty for goods used in manufacturing display assemblies, inductor coil modules, and Lithium Ion Cells, providing significant cost advantages for electronics manufacturing services companies. For Syrma SGS, this duty exemption particularly benefits the company's distinct competitive edge in domestic manufacturing of magnetic products, including inductor coils, chokes and transformers, making domestic assembly highly cost-competitive against direct imports from China. The exemption covers five critical display components: Cell, Flexible Printed Circuit Assembly (FPCA), Backlight Unit (BLU), Frame, and Anisotropic Conductive Film (ACF), reducing input costs for domestic display assembly manufacturers.
HSBC has initiated coverage on Syrma SGS Technology Ltd. with a 'Buy' rating and a target price of ₹1,750, implying an upside of about 21.4% from the current trading price of ₹1,441.70. The target price makes it the highest on the Street, with the stock currently having 25 buy calls, five hold calls, and only one sell call among the 27 analysts covering the stock. HSBC sees the electronics manufacturing services company benefiting from India's fast-growing EMS market, backward integration, and inorganic expansion strategies. The brokerage highlighted margin drivers including high export mix, high-engineering/low volume product mix, and vertical integration, positioning the company favorably despite increasing competition. HSBC expects the company's sales, EBITDA and net profit to grow at compound annual rates of 32%, 33% and 35% respectively, between FY26 and FY29.
India's EMS industry is projected to grow at a 27% CAGR between 2024 and 2029 and capture about 32% of the $320-billion incremental global opportunity during the period. The government's duty exemptions particularly benefit companies like Syrma SGS, which has evolved from assembling printed circuit boards to manufacturing boards themselves—an area where India currently imports about 90% of its demand. According to Equirus, this policy extension is positive for India's EMS and component ecosystem, as it lowers the landed cost of critical display inputs, supports domestic value addition, and improves the competitiveness of manufacturers supplying display assemblies for industrial automation, healthcare equipment and automotive electronics. The amendment ensures these components continue to enjoy duty-free imports through March 2029, providing long-term policy visibility for manufacturers.
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. This leadership transition comes as the company continues to benefit from favorable industry trends and government support measures.
The latest gains add to the stock's exceptional performance over the past year, with Syrma SGS Technology rising 11.4% in the past month and 94.6% year-to-date. The stock was trading at ₹1,395.5 at 10:45 am on Thursday, July 9, showing strong momentum following the positive developments. The strong performance reflects investor confidence in the company's growth prospects within India's expanding EMS sector and the positive impact of recent government policy support, including the extended customs duty exemptions that provide long-term cost advantages for domestic manufacturing.
