Syrma SGS Breaks Out with Technical Surge and EMS Tailwinds

Spread love

After a breakout above key technical levels and bullish RSI signals, Syrma SGS is gaining investor attention with a 70% stock surge, JV expansion, and strong policy-led growth in India’s electronics manufacturing sector.

By S JHA

Mumbai, October 21, 2025 —Syrma SGS Technology Ltd has surged into investor focus following a strong technical breakout backed by volume, positive RSI trends, and robust sectoral tailwinds. According to a recent report from Angel One, the stock has completed a successful retest of its breakout zone and is now trending upward, supported by major EMAs and a bullish RSI.

“The 14-day RSI remains in the bullish zone, holding above 50 multiple times. All major EMAs — especially the 20 and 50 — continue sloping upward, acting as strong support during minor pullbacks,” the report states. Angel One recommends a Buy in the ₹840–₹835 range, with a target of ₹1,000 and a stop loss at ₹750.

Market expert Anurag Shukla highlighted Syrma’s transformation on X: “After 30 years, Syrma SGS has surged into the spotlight — stock up 70%, orders booming, and PCB manufacturing expanding rapidly.”

This momentum is further supported by India’s PLI 2.0 scheme, increased global outsourcing of electronics, and Syrma’s diversification into high-value segments like automotive, healthcare, and ODM (Original Design Manufacturing) services.

Strategic Moves: Elemaster JV and Facility Expansion

Syrma SGS recently entered a joint venture with Italian firm Elemaster to manufacture high-reliability electronics in India. A new 20,000 sq. ft. facility in Bengaluru is under development, equipped with advanced SMT, THT, and box-build assembly lines — positioning the company to meet growing domestic and global demand.

The Catalyst Decoder, another voice on X, emphasized Syrma’s growth potential: “Current utilization at its Pune mega-campus is only 40–50%, giving Syrma ample room to scale without major CAPEX. Strong PLI support and new OEM contracts (like MSI and Dynabook) are key drivers.”

Short-Term Volatility, Long-Term Opportunity?

Despite recent dips — including a breakdown below support levels of ₹760 and ₹720, as noted by analyst Gnyanand Bhat — many experts view these as buying opportunities rather than warning signs. “Bearish crossover is short term. All dips are for buying,” Bhat tweeted.

Q1FY26 Snapshot: Financials at a Glance

Revenue: ₹9.5 billion (↓18.5% YoY)
Profit After Tax: ₹499 million (↑145% YoY)
Exports: ₹2.3 billion (25% of total revenue)
Focus: Automotive, EVs, Healthcare, Railways

Industry watchers see Syrma SGS as a key player in India’s semiconductor and electronics revolution, alongside peers like Dixon, Kaynes, Sahasra, and Tata Elxsi.

“The EMS sector is a goldmine — and Syrma SGS is executing a long-term blueprint for value creation,” said Abhishek Gulati in his Q1 FY26 sector review.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)