Emkay's research report on Symphony
Symphony’s 3QFY15 (standalone) operational results met our expectations led by (a) steady revenue growth and (b) expansion in EBITDAM
Favorable product mix, higher realizations and lower commodity prices aid gross margin expansion
Volume growth momentum slowing down. Unseasonal rains may play spoilsport
Price to sales ratio of 16xFY15E. EPS growth of ~37% over FY14-17E and a P/E multiple of 39xFY17E. FCF yield (FY17E) at 1.9%. We believe the stock is richly valued against historical averages. Recommend sell. Don’t be the last one to leave the party
"Though we continue to believe that the growth potential of the domestic air-cooler industry remains intact, the stock is now richly valued on all parameters. We have pegged the target valuations at 2.0% FCF yield (FY17E), with the underlying target of Rs 2,982/share. We recommend sell", says Emkay Global Financial Services research report.
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