We have covered this company earlier at

Company at Y2K moment

SYRMA SGS

Manufactures various electronic sub-assemblies, assemblies and box builds, disk drives, memory modules, power supplies/adapters, fiber optic assemblies, magnetic induction coils and RFID products, and other electronic products. The company is a part of Tandon Group with Sandeep Tandon as chairman of the company. Its manufacturing facilities are spread across Northern India (Bawal, Haryana, Manesar, Haryana, Baddi, Himachal Pradesh) and southern India – Chennai (Tamil Nadu), Bengaluru (Karnataka). 

One of India’s Largest ESDM Company in the Non-Consumer Segment

300+ customers, 18 Facilities, 20+ exporting countries

with end to end capabilities and backward integration of PCB and components inhouse

Business verticals serving high growth industries

Four Dedicated R&D Facilities
1 in Germany & 3 in India

190 employees in RnD, 537 overall engineers

1800+ suppliers

Global certifications in place

Revenue splits

Opportunities and Growth Drivers

Government Initiatives
 Capitalizing on government incentives such as PLI, MSIPS, ECMS, PM E-drive and EMC  Tax incentives, infrastructure support
Growth of IoT & Smart Devices
 IoT in industrial, automotive, consumer segments to drive customized solutions
 Automotive IoT growth driven by connectivity, ADAS, personal UI, etc
Export Opportunities
 Rising trend of supply chain diversification
 India being favored as the global alternative as part of China + 1 strategy

Increasing outsourcing by OEMs
 OEMs increasing reliance on ESDM players for cost efficiency, scalability, supply chain flexibility

Increasing focus area

Very very interesting chart on what SYRMA wants to do in coming time

RISKS

The company imports 60% of its material requirements, which exposes it to foreign exchange fluctuation risk. While part of the forex exposure is naturally hedged from exports (about 25% of the total revenue), the company takes three months forwards to cover part of the open exposure and is able to pass on the impact of foreign exchange fluctuation to customers to some extent, any major forex fluctuation can impact the margins.

Time to time changes in technology may impact business in short term

Intensive working capital nature of business may need consistent cash flows

Technicals