Buy Symphony; target of Rs 650: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal's report on Symphony (SYML)

"SYML has been the most innovative cooler company by being first in offering a host of new products every year. It recently introduced the new I-series models, with unique features like Dura pump technology resulting in longer pump life, Empty water tank alarm to notify when water tank is empty, System restore function (cooler will restart with same settings and function after power is restored) and a Feather-touch digital control panel. Also with a view to take on unorganized market it recently launched its range of branded window coolers comprising of 5 models in attractive beige color, out of which 3 are of plastic body and 2 of metal body. SYML has a strong distribution network of 750 distributors 16.4k dealers as of FY13 which it plans to ramp up to 40k in the medium to long term. Owing to consistent innovation, SYML has not only been able to garner higher market share, but has also created a niche and brand leadership. Given that SYML's new range of products (I-series, Storm and Windows air cooler) have higher realizations and margins to the extent of 5-20 percent, we expect margins to improve 200bp over FY14-16E."

"We expect SYML to record 25 percent revenue CAGR and 30 percent PAT CAGR over FY14-16E. Margins are likely to improve to 24.5 percent in FY16E as against 22.5 percent in FY14E. Its market leadership coupled with strong growth prospects for the industry and healthy financial metrics (debt free; 40 percent+ RoCE) are reasons why we like the stock. It currently trades at 11.3x FY16E EPS. We initiate coverage with a Buy rating. Our target price is INR650 (15x FY16E EPS), implying an upside of 33 percent," says Motilal Oswal research report.

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