Systems Limited (SYS): Pakistan’s Tech Giant With Global Dreams

Pakistan’s largest IT company, Systems Limited (SYS), is showing all the right signs for strong future growth, and investors are taking notice. JS Global has initiated coverage on the stock with a Buy rating, suggesting there’s a 35% upside from current levels, with a target price of Rs 180/share.

But why are analysts so confident about SYS?

Let’s break it down in simple terms:

1. Fast & steady growth ahead

SYS is expected to keep growing rapidly. Over the next five years (2025–2029), its revenues are projected to rise by 26% every year on average. This growth is powered by its diverse business across different industries and countries.

2. MENA: The star region

More than half (59%) of SYS’s revenue comes from the MENA region (Middle East & North Africa). This region is expected to grow even faster, about 30% per year, with Saudi Arabia playing a key role. That’s where SYS is betting big.

📢 Announcement: We're on WhatsApp – Join Us There! 

3. Healthy profits

Despite expanding fast, SYS is expected to keep its profit margins between 25–27%. That’s thanks to cost control, better efficiency, and the benefit of a weaker Pakistani Rupee, which boosts foreign earnings.

Don't miss:

• Which cars are driving the rally in auto stocks?
• 5 High ROE stocks according to Topline Securities
• Why TPLP could go higher.

4. Lower costs = more contracts

Compared to international competitors, SYS has a cost advantage. This means it can offer competitive prices when bidding for international contracts, increasing its chances of winning more deals.

5. Growth through acquisitions

SYS isn’t growing just by offering more services. It’s also buying other companies to grow faster. The most recent example? SYS acquired British American Tobacco’s SAA Services, adding more strength to its portfolio.

Systems Limited has come a long way as a local tech player, and now it’s making a name globally. With strong growth, steady profits, regional expansion, and smart acquisitions, it’s positioned as a top pick for long-term investors.

With a 35% potential upside, SYS might just be a stock to keep an eye on.

Source: JS Global

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →