Syrma SGS Technology with Three White Soldiers Chart Turns Hot

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Syrma SGS Technology Stock Hits Record Weekly Close with Bullish Momentum: Angel One

By S JHA

MUMBAI, July 12, 2025 – Syrma SGS Technology Ltd. recorded its highest weekly close on Friday, driven by a bullish ‘Three White Soldiers’ candlestick pattern accompanied by heavy trading volume. This technical setup signals strong upward momentum, making it a stock to watch for potential opportunities, said Angel One in a note to clients on Friday.

Syrma SGS Technology’s stock surged to a 52-week high of ₹678. on Friday, rallying over 2% in intra-day trade amid robust trading volumes. The catalyst for this rally was a report that the company is set to establish India’s largest multi-layer Printed Circuit Board (PCB) and Copper Clad Laminate (CCL) manufacturing facility in Naidupeta, Andhra Pradesh, with an estimated investment of ₹1,800 crore.

Market participants said that the key investment positions Syrma SGS as a key player in India’s electronics manufacturing services (EMS) sector. The company is also seeking to capitalize on the growing demand for advanced electronics components.

“The stock’s strong performance continued through the week, closing at its highest weekly level, underpinned by the bullish Three White Soldiers pattern—a series of three consecutive long bullish candles indicating sustained buying pressure,” suggested Angel One in its market note. The heavy volume further confirms strong market participation and conviction in the stock’s upward trajectory, said market participants.

Financial Overview

Syrma SGS Technology has demonstrated robust financial growth, as highlighted by market participants and historical performance: – Revenue Growth: Over the past five years, Syrma SGS has achieved a revenue CAGR of over 30%, alongside similar growth in EBITDA, PBT, and PAT, showcasing its ability to scale operations effectively. Margin Improvement: In Q4 FY25, the company strategically reduced its exposure to the low-margin consumer segment (down 60% YoY), which has contributed to improved profitability. Business Standard in a report quoted analysts expecting margins to continue improving in the near-to-medium term from FY25 levels, driven by a focus on high-margin products like automotive, industrial, and railway components.

Demand Outlook: India Ratings and Research (Ind-Ra) forecasts strong demand for Syrma SGS’s products, supporting sustained revenue growth. The company’s diverse portfolio, including electronic sub-assemblies, memory modules, power supplies, and RFID products, positions it well to capture market share in high-growth sectors like electric vehicles (EVs) and industrial automation, added Business Standard report on the company.

The company’s financial health is further bolstered by its strategic expansion into high-demand sectors, with the new Andhra Pradesh facility expected to enhance production capacity and drive long-term revenue growth.

Technical Chart Analysis

From a technical perspective, Syrma SGS Technology’s chart exhibits strong bullish signals: – Three White Soldiers Pattern: The stock formed a classic Three White Soldiers pattern on the daily chart, characterized by three consecutive bullish candles with higher closes, signalling a strong reversal or continuation of an uptrend. This pattern, combined with heavy volume, suggests significant buying interest and potential for further upside.

Inverse Head & Shoulders Breakout: Earlier in 2024, a post on X noted an Inverse Head & Shoulders pattern breakout at around ₹510, with targets of ₹705 and ₹1,022, suggesting significant upside potential. While these targets are speculative, they align with the stock’s current bullish momentum.

Support and Resistance: The stock has strong support near ₹600, with resistance around ₹700. A sustained move above ₹700 could pave the way for further gains toward the ₹800–₹1,000 range, as suggested by technical analysts. The heavy volume accompanying the recent price action reinforces the strength of the breakout, as it indicates broad market participation and reduced likelihood of a false move.

JPMorgan’s Bullish Outlook: Global brokerage firm JPMorgan initiated coverage on Syrma SGS with an ‘Overweight’ rating, projecting a “31% revenue CAGR” through FY28, driven by growth acceleration and margin expansion. Pankaj Jain, SEBI-registered analyst on X, highlighted Syrma SGS as a stock to watch, citing its “sustained strength in price action” and favourable technical setup. He emphasized the stock’s robust chart structure as a reason for adding it to watchlists.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.)

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