Feb 16, 2017 03:58 PM IST | Source: Moneycontrol.com

Buy Symphony Ltd; target of Rs 1530: ICICI Direct

ICICI Direct is bullish on Symphony Ltd has recommended buy rating on the stock with a target price of Rs 1530 in its research report dated February 14, 2017.

Buy Symphony Ltd; target of Rs 1530: ICICI Direct

ICICI Direct's research report on Symphony Ltd

Despite demonetisation, Symphony’s net sales increased 11% YoY in Q3FY17 led by same volume growth both in centralised and residential air cooler. Also, no major price hike and slight change in the product mix during Q3 kept realisation growth under check.

Outlook

We have modelled sales and earnings CAGR of 26% and 28%, respectively, in FY15-19E, led by strong volume growth in the wake of better monsoon, implementation of Seventh Pay Commission, GST. We use DCF method for valuation, assuming revenue CAGR of 26% (FY15-25E), terminal growth of 5%, WACC of 11% and maintained our target price to Rs 1530.

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