Symphony can test Rs 1500: SP Tulsian

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Symphony can test Rs 1500: SP Tulsian

Symphony can test Rs 1500 in six months time, says SP Tulsian, sptulsian.com.

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Symphony can test Rs 1500 in six months time, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Symphony is the world's largest air-cooler company. They have presence in about 2,300 cities and towns with 600 retail outlets. This company has been consistently posting very good profits year-on-year and taking the June, the company has its year ending to June and March quarter and June quarters are always the best quarters for the company. If I take the nine months results of the company into consideration in March quarter, the company has posted an EPS of about Rs 30 and extrapolating the same trend for the June quarter as well. FY11 year-ending June company should be having an EPS of close to Rs 85."

He further added, "The company is now presently having two manufacturing plants, one in India, one overseas and they are setting up the third SEZ unit in Surat to augment their export share, which is now at about 18% of their total turnover."

"For nine months they have a topline of close to 175 crore. So they will be ramping up their export turnover as well which can maybe in next twelve  months time once the Surat unit goes on spin can rise to about 30% of the total turnover. So FY12 June ending, company should be able to post an EPS of close to 115."

"Its shareholding pattern again is quite interesting, promoters are holding 75% stake, 10% stake is held by few long-term investors. So there is a very low float. Again the stock looks little expensive because of the high price it is ruling at about Rs 1,170-1,180. But I think this has a quite good potential if somebody can keep a view of about six month time. They should be able to see a price of Rs 1,500."