Systems Limited (SYS): A Pakistani IT Giant Going Global, And Growing Fast

If you’re interested in how Pakistan is playing a part in the global tech world, Systems Limited (SYS) is a name you need to know. It’s the biggest listed IT company in the country and is making serious moves across the world, especially in the Middle East.

Right now, financial experts believe the stock is undervalued and could go 35% higher from where it is today. Here’s a simple breakdown of why SYS looks like a smart pick and what you should know.

Strong growth, year after year

SYS is growing fast. Look at the numbers:

• Sales jumped from Rs 15 billion in 2021 to Rs 53 billion in 2023.
• By 2027, sales are expected to hit nearly Rs131 billion.
• That’s a growth rate of 25–30% per year!

Even better? The company’s profits are expected to triple from Rs7.4 billion in 2024 to over Rs21 billion in 2027.

Powered by global clients

SYS doesn’t just serve clients in Pakistan. 87% of its income comes from international clients. The company operates across:

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• North America
• Europe
• Asia-Pacific
• Middle East & Africa (MENA)

The MENA region, especially Saudi Arabia, is its biggest revenue driver, making up 59% of total sales in 2024.

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What does SYS do?

SYS helps companies use technology better. Its services include:

• Building and managing software
• Helping businesses shift to the cloud
• Running and managing IT services
• Outsourcing business and tech support

It works with banks, telecom companies, retail brands, hospitals, and more.

Profit margins & valuation

SYS is not just growing fast, it’s staying profitable. Its profit margin (gross) stays steady between 25–27%, and earnings per share (EPS) are projected to grow 37% per year over the next 5 years.

Despite this, the stock trades at just 12x earnings for 2026, which means it’s still cheap compared to how fast it’s growing.

Dividends and returns

SYS offers a modest dividend yield of 1–2%, but the real value is in the growth. The Return on Equity (ROE) is also strong, expected to be 27–28% in the coming years.

That’s a sign that SYS is using its money well and creating value for shareholders.

Expanding through acquisitions

SYS isn’t only growing by selling more, it’s also buying other businesses to grow faster. The most recent example is its acquisition of British American Tobacco’s SAA Services, helping it expand into new areas.

What are the risks?

Two key risks to watch:

1. Currency movements: Since most revenue comes in foreign currency, a stronger Pakistani Rupee could affect profits.
2. Tax policy changes: If the government changes the rules for taxing IT companies, it might impact future earnings.

However, SYS management believes the current tax system will continue.

Systems Limited is a Pakistani success story going global. With strong growth, solid profits, and smart strategy, it’s well on its way to becoming a global tech player.

If you’re watching Pakistan’s stock market or looking for exposure to fast-growing tech companies, SYS is one 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 →