Reduce Symphony; target of Rs 1513: 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 Q1FY25, its consolidated revenue rose 75.8% YoY to Rs. 531cr, driven by increased sales of air coolers and other durables in the domestic as well as export markets. EBITDA tripled to Rs. 111cr and margins expanded 1,230 bps YoY to 20.9%, led by improved cost mix. The company is expected to sustain its current trajectory, with strategic product positioning and innovations maintaining demand.

Outlook

However, following recent price increases, we believe there is limited room for further upside in the near term. Hence, we downgrade our rating to REDUCE on the stock with a revised target price of Rs. 1,513, based on 38x FY26E adjusted earnings per share (EPS).

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