Hold Symphony; target of Rs 1295: ICICI Direct

ICICI Direct recommended hold rating on Symphony with a target price of Rs 1295 in its research report dated August August 02, 2019.

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August 05, 2019 / 16:45 IST

26 Aug, 2025 12:21

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ICICI Direct's research report on Symphony

Symphony’s strong consolidated performance in Q1FY20 came on the back of a low base, a demand revival in the domestic business and consolidation of Climate Technology, Australia. On the standalone front, fresh demand from dealers on account of strong summer vis-à-vis low base had translated to strong volume growth at ~100% for Symphony. However, gross margin remained under pressure (down 377 bps YoY on standalone basis) due to a change in mix and higher advertisement expenses restricting EBITDA margin expansion to 15% (vs. standalone annual average of 30%). The company reiterated strong volume growth and margin recovery in FY20E-21E led by leveraging dealer networks along with rationalisation of cost in the overseas and domestic markets.

Outlook

Hence, we maintain HOLD rating on the stock with a revised target price of Rs 1295 (valuing at 38x FY21E).

For all recommendations report, click here