Symphony net profit margins expanded 20% upwards: Pankaj Pandey

In a chat with ET Now,Pankaj Pandey, Head Research, ICICIdirect.com, shares his views on consumer brands such as Symphony.

ET Now: We have flagged off three consumer names Symphony, Eveready and Relaxo which have done exceedingly well this year. Your views?

Pankaj Pandey: Correct and we cover all the three names. Symphony and we have been maintaining positive bias on this particular stock throughout. So, if you look at their net profit margins for Symphony has expanded upwards of 20% which is comparable with any of the kind of FMCG names.

There is a big opportunity in terms of conversion from the unorganised market to the organised market, which is where this company is capturing market from. If you look at last year FY14 they have a volume growth in excess of 42% which is commendable. That's why we would like to believe that these kind of place or niche place would continue to sort of outperform the market. But again it has to be looked at from a stock specific perspective that is not to say that the entire segment might do well from that perspective.