Syrma SGS Tech. (SYRMA)

FairStock Score: 60/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market asks ₹1,465.20 for Syrma SGS Tech., valuing it at ₹28,223 Cr. The growth is real: sales up 68.30%, profit up 86.00%, five-year revenue CAGR of 34.45%, and the latest quarter delivered sales of ₹1,264 Cr and net profit of ₹110 Cr. That makes it a Fast Grower. The balance sheet also deserves respect: debt/equity is only 0.13, Altman Z-score is 4.06, Piotroski F-score is 8/9, ROE is 16.12%, and ROCE is 11.67%. Promoter holding of 42.72% is a positive. But Graham teaches me to ask what I am paying. The P/E is 75.76, P/B is 9.79, and EV/EBITDA is 95.50. The Graham Number is ₹186.04 and DCF intrinsic value is ₹203.14. Against ₹1,465.20, the margin of safety is -341.98%. In plain terms, the price already assumes years of flawless execution. Free cash flow is only ₹73 Cr against a ₹28,223 Cr market cap, giving an FCF yield well below 1%, while dividend yield is 0.10%. A business earning 11.67% on capital is good, but not so exceptional that it obviously justifies nearly 10 times book. The moat is not evident from these figures; high growth alone invites competition. Buffett would praise the low debt, strong profit growth, and high Piotroski score, but he would not pay this price. The company may keep growing, yet the investor’s return depends heavily on entry price. At ₹1,465, the odds look unattractive; I would want a much larger margin of safety or pass. Price is what you pay; value is what you get, and here the numbers say value is far below price.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer