Shares of Syrma SGS Technology surged over 5 percent on Thursday, July 10, hitting its 52-week high of ₹682.70 amid investor optimism following the company’s confirmation of its ambitious plans to set up India’s largest multi-layer Printed Circuit Board (PCB) and Copper Clad Laminate (CCL) manufacturing facility. This marks the second straight day of gains for the stock, which has rallied over 11 percent in just two sessions.
The development reinforces Syrma SGS’s position in India’s electronic manufacturing ecosystem as it aligns with the government’s ‘Make in India’ push and self-reliance in critical technology components.
Strategic Partnership with South Korean Player
The Chennai-based electronics manufacturing firm is set to invest approximately ₹1,800 crore in developing the proposed facility at Naidupeta in Andhra Pradesh. The project is being planned in partnership with South Korea’s Shinhyup Electronics, which will provide technological and marketing support. Once operational, the facility is expected to significantly boost India’s capability in manufacturing high-end electronic components domestically.
In a regulatory filing, Syrma SGS shared a detailed sequence of negotiations and milestones leading up to the project’s announcement. The process began on December 24, 2024, with the signing of a Non-Disclosure Agreement (NDA) with Shinhyup Electronics. This was followed by a series of structured communications in January 2025, including a planned visit of Shinhyup’s team to Chennai and the signing of a Non-Binding Memorandum of Understanding (MoU) on January 16.
The following months witnessed deeper collaboration. From January through February, both parties engaged in business plan preparation. On March 17, Syrma SGS officials traveled to Korea to visit Shinhyup’s plant, assessing the technology and operations. In March and April, the teams continued working on financial models and costing, culminating in the signing of a Non-Binding Term Sheet in Chennai on April 29.
Regulatory and Government Liaison Efforts
In parallel, Syrma SGS undertook regulatory steps to align the project with the Government of India’s Electronic Component Manufacturing Scheme (ECMS). An NDA was signed with Ernst & Young on April 9 to facilitate filings and strategy. By May 5, the company had registered with the ECMS portal, and on May 22, it officially submitted its application under the Multi-Layer PCB category to the Ministry of Electronics and Information Technology (MEITY).
Syrma SGS also held discussions with the Government of Andhra Pradesh and the state’s Economic Development Board (EDB) for land acquisition and incentives. In June, the company engaged in talks with the IT Secretary of Andhra Pradesh, submitting a detailed project report on June 26, seeking support for land allocation and policy incentives.
Brokerage View: Strong Growth Outlook
Adding to the bullish sentiment, global brokerage JPMorgan initiated coverage on Syrma SGS with an ‘Overweight’ rating. The firm expects robust revenue growth and margin expansion, projecting a 31 percent compound annual growth rate (CAGR) in revenues from FY25 to FY28.
JPMorgan also forecasted a 70 basis points improvement in EBITDA margin, taking it to 9 percent by FY28. The optimism is driven by expected demand from the industrial and automotive sectors and easing margin pressures in the consumer electronics segment. Moreover, the brokerage anticipates a recovery in exports beginning FY27, a factor it believes is underpriced by the market and could trigger further earnings upgrades.
Stock Performance
On Thursday, the stock touched a new 52-week high of ₹682.70, marking a 5.2 percent intraday rise. It now trades nearly 93 percent above its 52-week low of ₹355.05 hit in April 2025. So far in 2025, Syrma SGS has delivered a return of nearly 16 percent, with gains in five out of the first seven months. On a one-year basis, the stock has appreciated over 32 percent, reflecting strong investor confidence in the company’s growth trajectory and strategic vision.
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