Consumer Durables News

Symphony share price: Add Symphony, target price Rs 1200: HDFC Securities

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HDFC Securities has add call on Symphony with a target price of Rs 1200. The current market price of . is Rs 942. Time period given by analyst is one year when Symphony Ltd. price can reach defined target.

Symphony Ltd., incorporated in the year 1988, is a Mid Cap company (having a market cap of Rs 6638.92 Crore) operating in Consumer Durables sector.

Symphony Ltd. key Products/Revenue Segments include Air Coolers, Others and Other Operating Revenue for the year ending 31-Mar-2021.

Smart Talk

Financials

For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 341.00 Crore, down -14.75 % from last quarter Total Income of Rs 400.00 Crore and up 43.28 % from last year same quarter Total Income of Rs 238.00 Crore. Company reported net profit after tax of Rs 29.00 Crore in latest quarter.

Investment Rationale
Symphony’s domestic business delivered an in-line performance along with high channel inventory clearing up to negligible levels. Domestic revenue was at INR 1,880mn, 119/+11% YoY/QoQ, up 8% on a three-year CAGR. The domestic sales were in addition to the heavy channel liquidation, reconfirming the strong air cooler demand during the peak season in India. Exports were at INR 200mn (HSIE INR 254mn) vs. INR 180mn YoY. RoW was down 1% on three-year CAGR. The US business saw strong volume growth; however, value was impacted by discounting. Consolidated gross margin expanded 211bps YoY to 45.6%. Higher A&P spends, freight costs and warranty provisioning impacted consolidated as well as India EBITDA margin. With normal negligible channel inventory and strong initial pick-up by trade in July, the brokerage expects domestic business to be in good shape. Operating margin is also expected to bounce back from Q2FY23 onwards with normalised marketing spend and price hike.


Promoter/FII Holdings
Promoters held 73.25 per cent stake in the company as of 30-Jun-2022, while FIIs owned 4.33 per cent, DIIs 10.9 per cent.

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