Name: Latest research reports of Symphony Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Symphony Ltd.
Rating: 5
Author: HDFC Securities

Symphony (2QFY20): Back on the fast lane. Maintain BUY

Buy: Symphony Ltd.

Target

HDFC Securities

Summer 2019 confirms our thesis that Symphony will deliver strong performance if summer is hot. Organised air cooler market (27/35% volume/value mix) will deliver 15% CAGR despite rising affluence towards RAC. Symphony's constant focus on product innovation and superior franchise with distributors will make the company competitive. With trade inventory now at low levels, Symphony will enjoy off-season stocking, opportunity to launch tech-rich coolers and benefit from a favorable base. Besides, its international performance will improve given the various initiatives undertaken. Symphony continued its strong momentum in 2Q after a sharp recovery in summer-19. 2Q performance was in-line with expectations and further builds our confidence for a robust 2HFY20 show. We remain bullish on Symphony given its sharp recovery in domestic biz and scope to tap new opportunities (industrial and commercial cooling, portable coolers in Aus and US). We maintain estimates and value Symphony at 45x Sep-21 EPS. We believe the stock will re-rate owing to consistent outperformance vs. appliance cos. We maintain BUY with TP of Rs 1,812.