Anand Rathi's research report on Symphony
Rising mercury levels could brighten Symphony’s fortunes. The inflationary contextin the USA and Australia and rising logistics cost could dampen prospects of overseas subsidiaries and are key monitorables. Keen competition from peers with strong brands and marketing networks in summer of CY23 would also be an important factor to watch.
Post Q2FY23, our FY23e and FY24e revenue are intact. However, we lower FY23EBITDA margin 14% and FY24, 19%. At the CMP, the stock trades at 29x/23x the FY24e FY25e EPS of Rs31.4/40.1.We retain our Buy rating with a TP of Rs1,194, 30x FY25e EPS of Rs40.1 (earlier Rs1,347, 35x FY24e EPS of Rs38.5). The PEcut is in line with the companies we cover.