Symphony Ltd. share price target

Rising per capita income, Increased electrification, Untapped opportunities, Rising temperature necessitates cooling solutions, We value Symphony Ltd at 45x FY21E to arrive at price target of Rs 1680 giving an upside of 37%

We maintain BUY. Symphony reported a weak but in-line performance in a non-seasonal quarter. Domestic revenues contracted by 33% (+27% in 3QFY18; -21% in 2QFY19) vs. exp. of -25% owing to high channel inventory. Standalone EBITDA/PAT grew by -45/-36% vs. expectations of -30/-26%.

ICICI Securities Ltd | Retail Equity Research The standalone performance of Symphony in Q3FY19 was much below our estimate (as revenue, earnings fell 27%, 35% YoY, respectively) led by lower domestic volume offtake and change in product mix. On the overseas front, Q3 tends to be a weak quarter for two subsidiaries in Mexico and China while recently acquired Climate Technology Australia recorded six-month revenue of | 141 crore, with EBITDA margin of ~6%, PAT of | ~4 crore. As a result,...

Due to spill over impact of bad summer, Symphony posted sharp ~20% YoY decline in standalone revenue in Q2FY19 as a result of lower volume offtake. Although EBITDA margin showed a smart recovery sequentially in Q2FY19, it...

Symphony Ltd reported mix set of numbers for Q2FY19. While revenue growth was in-line with our projection, the company disappointed on the profit front. At the consolidated level, revenue grew by 5.2%, aided by first time consolidation of Climate Technologies, while EBITDA & APAT declined by 31.7% & 30% YoY respectively.

We value at 45x Sep-20 EPS, our TP is at Rs 1,682. We maintain BUY. Symphony reported weak but in-line performance in a non-seasonal quarter. Domestic revenues contracted by 21% (-41% in 1QFY19, +26% in 2QFY18) vs. exp. of 14% dip owing to high channel inventory. EBITDA/PAT declined by 30/27% vs. expected fall of 24/23%.

ICICI Securities Ltd | Retail Equity Research The standalone performance of Symphony in Q2FY19 was much below our estimate due to lower volume offtake (as dealers refrained from build-up of new inventories due to low demand of cooling products) and trade discounts to support dealers. First time consolidation of Climate Technology post acquisition, recorded revenue of | 56 crore, nominal PAT of | 20 lakh in the quarter. However, the sharp fall in domestic sales volume weighed on the...

Symphony Ltd's Q1FY19 standalone numbers were disappointing and significantly below our estimates on all parameters. Weak summer impacted the domestic Air Coolers business sharply and resulted in 39.2% YoY decline in revenue growth. Significantly higher A&P spends and operating de-leverage resulted in a sharp contraction of 1412bps YoY in EBITDA margins. PAT de-grew by 79.2%.

At 45x Jun-20 EPS, our TP is at Rs 1,734 (earlier 2,031). We maintain BUY. Symphony posted disappointing 1Q performance on all fronts. Domestic revenue contracted by 41% (exp. 5% down) despite a favorable base (18% decline in 1QFY18). Standalone EBITDA/PAT was down by 95/79%. On the brighter side, subsidiaries (Mexico and China) revenues grew by ~10%.