Hold Symphony, target price Rs 1090: ICICI Direct

Hold Symphony, target price Rs 1090:  ICICI Direct

ICICI Direct has hold call on Symphony with a target price of Rs 1090. The current market price of Symphony Ltd. is Rs 1006.15.

Symphony Ltd., incorporated in the year 1988, is a Mid Cap company (having a market cap of Rs 6887.27 Crore) operating in Consumer Durables sector.

For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 216.00 Crore, up 13.09 % from last quarter Sales of Rs 191.00 Crore and down -25.52 % from last year same quarter Sales of Rs 290.00 Crore Company reported net profit after tax of Rs 27.00 Crore in latest quarter.

Investment Rationale
The brokerage continues to like Symphony for its leadership position in the domestic air cooler market and its capital efficient working model. However, margin recovery and sustainability of market share in the upcoming summer season will be key variable to watch. It rollover valuation on FY23E and change rating from BUY to HOLD, with revised target price of | 1090 (valuing 27x FY23E EPS).

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of June 30, 2020, while FIIs held 4.9 per cent, DIIs 10.1 per cent and public and others 10 per cent.

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