Buy Symphony; target of Rs 1850: ICICIdirect

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

ICICIdirect.com`s research report on Symphony“Despite the off season, Symphony recorded another stellar performance in Q1FY15 wherein standalone revenue increased notably by 42.5% YoY to Rs 102.7 crore led by strong volume growth of 38% YoY. Domestic sales witnessed strong growth of 43% YoY whereas exports sales grew ~38% YoY. The company has an organised market share of more than 50% with the top three brands constituting ~40% of sales. EBITDA margins increased 391 bps YoY supported by a sharp decline in selling & distribution expenses by 340 bps YoY. This was partially offset by an increase in other expenses by 116 bps YoY. Advertisement expenses increased 69% YoY during FY14. Net profit increased ~51% to ~Rs 22 crore led by a higher EBITDA margin and sharp growth in other income (due to maturity of FMPs).” “Symphony is India’s leading evaporative air cooler manufacturer with a market share of more than 50% (value terms) in the organised product category. Over the years, it has been able to create a strong brand name, which has become synonymous with air coolers in India. With its focus on R&D and innovations, Symphony constantly evolves its products to enhance design, technology and post sales services. The company has launched more than one new model annually for six years. Over the years, it has established a robust distribution network comprising ~750 dealers (152 in 2007), ~16,500 retail dealers (3,308 in 2007) and ~4,500 towns (1430 in 2007). Also, Symphony has consistently invested in brand building through advertisement campaigns (~4% of sales over the last three years), strengthening its brand recall.” “Historically, during FY11-13, the stock has commanded an average one year forward earning multiple of 15x with revenue, earnings CAGR of 14%, 8%, respectively, and average RoE of 30%. We believe Symphony would continuously post strong revenue, earning CAGR of 27%, 26%, respectively, for FY14-17E. The company declared a total dividend of Rs 13 per share in FY14. As a policy, Symphony would keep the dividend payout at more than 50%. This would increase return ratios for Symphony, going forward. We roll over our valuation on FY17E considering the revival in the Indian economy. We value the stock at 30x FY17E earnings with a revised target price of Rs 1850/share and upgrade our recommendation from HOLD to BUY,” says ICICIdirect.com research report.

For all recommendations, click here 

Disclaimer: 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.

Read More