Reduce Symphony, target price Rs 651: Edelweiss

Edelweiss has given reduce rating to Symphony with a target price of Rs 651. The share price moved down by 0.73 per cent from its previous close of Rs 841.55. The stock’s last traded price is Rs 835.40.

Symphony Ltd., incorporated in the year 1988, is a Mid Cap company (having a market cap of Rs 5862.40 Crore) operating in Consumer Durables sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 154.00 Crore, down 38.15 % from last quarter Sales of Rs 249.00 Crore and down 47.26 % from last year same quarter Sales of Rs 292.00 Crore Company has reported net profit after tax of Rs 2.00 Crore in latest quarter.

Investment Rationale
Symphony has sustained its competitive edge on the back of product prowess and distribution depth. Incrementally, the company needs to work around the rising threat to its dominance in air coolers, which could impact cash flows and returns given the ramp-up by larger peers. Besides, volatile/single product dependence poses a gradual de-rating risk.

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.