It said the company is leading in the electronics manaufacturing services sector and has a diversified customers base and original design manufacturing expertise.
Its backward integration and inorganic expansion are key for its growth, HSBC said.The margin drivers are:
- High export mix.
- High-engineering/low volume product mix.
- Vertical integration.
While competition increases, the company is positioned favourably, HSBC added.
On another note, the Centre on Thursday also announced the exemption of customs duty for goods used in the manufacturing of display assemblies. The duty has also been exempt for goods used to manufacture inductor coil modules and lithium ion cell.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.
This is an extension of the existing Nil BCD benefit rather than a fresh duty reduction. The amendment ensures these components continue to enjoy duty-free imports through March 2029, providing long-term policy visibility for manufacturers.
According to brokerage firm Equirus, this 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.
Equirus has listed Syrma, Dixon and Kaynes as key beneficiaries from this move.
Of the 27 analysts who have coverage on the stock, 25 have a “buy” rating, five have a “hold” rating and one has a “sell” rating.
Shares of Syrma SGS gained 5.3% to hit an intraday high of ₹1,439 apiece on Thursday. The stock was up 2.1% at ₹1,395.5 apiece at 10.45 am. It has gained 11.4% in the past month and 94.6% this year, so far.
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