Jayant Manglik
Symphony holds leadership position in organized air coolers market, commanding market share of >50 percent. Good monsoon would certainly increase the spending power of consumers, especially in the semi-urban and rural areas, Symphony’s key markets. This would result in improved demand for air coolers and boost the company’s volume growth.
GST implementation will help the company to strengthen its market share further in the coming years.
We expect healthy growth momentum in revenue and profits to continue over the next 2-3 years. New product launches in premium category and operating leverage should provide cushion to margins.
We remain positive on the company considering its market leadership, cash rich and debt free status, superior return ratios and high dividend payouts.
We have buy on the stock with target of Rs 1965 per share.
Disclaimer: The author is President - Retail Distribution at Religare Securities.The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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