Accumulate Symphony; target of Rs 1151: Geojit Financial Services

Geojit Financial Services research report on Symphony

Symphony Ltd and its subsidiaries manufacture and trade in residential, commercial and industrial air coolers in the domestic and international markets. The company operates through the air coolers and corporate funds segments, and offers residential, packaged and central air coolers. In Q4FY24, Symphony reported a revenue increase of 7.8% YoY, driven by a rise in the sale of air conditioners and other durables in the Indian and international markets. EBITDA jumped 147.8% YoY to Rs.57 crore, while margin expanded 970 bps YoY to 17.2% led by fall in input costs, employee and selling, general and administrative (SG&A) expenses. PAT doubled to Rs.48 crore. The Board recommended a final dividend of Rs. 8 per equity share.

Outlook

Symphony’s profitability doubled, owing to above normal temperatures in Indian regions and decent summer overseas. The intensified heat wave in India and overseas, ongoing transition and improving performance of subsidiaries are key growth factors. We reiterate to Accumulate with a revised target price of Rs. 1,151 based on 35x FY26E adj. EPS.