Hold Symphony, target price Rs 1,215: ICICI Direct

ICICI Direct has hold call on Symphony with a target price of Rs 1215. The current market price of Symphony is Rs 1162.

Symphony, incorporated in the year 1988, is a Mid Cap company (having a market cap of Rs 8149.64 crore) operating in Consumer Durables sector.

Symphony key Products/Revenue Segments include Air Coolers, Others.


Financials
For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 400 crore, up 88.68% from last quarter Total Income of Rs 212 crore and up 15.94% from last year same quarter Total Income of Rs 345.00 crore. Company has reported net profit after tax of Rs 64.00 crore in latest quarter.

Investment Rationale
Price performance has stayed muted, with stock underperforming the index in the last five years.

Key triggers for future price performance:

• The air cooler industry is dominated by unorganised players (70-75% of total industry). ICICIDirect believes organised players would gain market share due to their strong balance sheet and robust supply chain network

• Increased rural electrification, urbanisation & 1.7 crore new houses under PMAY will augment growth in the Indian air cooler market

• Strong demand of cooling products from Australia and the US will drive revenue growth of overseas subsidiaries