Buy Symphony, target Rs 2059: HDFC Securities

HDFC Securities has a buy call on Symphony Ltd. with a target price of Rs 2059. The current market price of Symphony Ltd. is Rs 1456. Time period given by the brokerage is s year when Symphony Ltd. price can reach defined target. Symphony Ltd., incorporated in 1988, is a midcap company with a market cap of Rs 10291.72 crore.

Investment rationale by HDFC Securities

Our bullishness on Symphony is based on (1) Rising demand for coolers in India driven by growing disposable incomes, cheaper financing options and increasing up-country penetration of electricity, (2) A large unorganised domestic market, (3) Consistent and successful product innovation by Symphony, (4) Growing distribution reach (40k dealers targeted vs. 30k now) over the next two years and (5) Untapped opportunities in RoW addressed play via acquisitions.  At 45x June-20 EPS, our TP is at Rs 2,059 (earlier 1,949). Maintain BUY.