SYMPHONY - A Comfort to hold for Long term?

We expect a strong recovery in domestic air‐cooling market to continue in FY23, now with
lower commodity prices margins are set to improve and return to pre‐covid levels. We
expect FY22‐24E growth trajectory of 17% revenue CAGR. Considering higher operating
leverage, we estimate FY21‐24E EBITDA and PAT CAGR of 26% each. we maintain BUY
with the PT of Rs1,223 valuing it at 40x FY24EPS. Current CMP offers good entry point.
YES Securities.

The brokerage remains positive on the domestic business outlook (led by low channel inventory); however, due to weak profitability for CT, it cuts FY23/24/25 EPS by 5/3/3%. It values the stock at 35x P/E on Sep’24E EPS and derive a TP of INR 1,150. HDFC Securities.

FY23Q2 concall notes

  • Domestic business is doing very well, trade channel is very buoyant
  • Australian business was muted because orders for USA was shifted to Q3 and Q4 due to shipping issues (no order cancellation)
  • Launching new models in US and exploring new sales channels including large format stores, ecommerce & D2C
  • EBITDA margins were lower because of additional costs for market research and trade channel incentives (6 cr.; one-time), higher freight expenses for exports to Brazil (3 cr.) and higher warranty expenses (because of higher sales from retailers and will persist going forward)
  • Will reach pre-covid EBITDA margins over a period of time
  • Commercial air coolers have higher margins vs domestic air coolers

Disclosure: Not invested (no transactions in last-30 days)


Company’s ability to take price hikes from here, will determine the future stock performance.

@rizulagg Agreed! Symphony has gained the highest ever quarterly revenue of Rs 250 crore by both licensing and device sales. If this number remains persistent, their stock will surely perform well in future.

The shares of Symphony are down more than 20% in a year’s period. The consumer goods stock has declined over 16% in 2022 (YTD) so far.


Q3 FY23 board meeting and results is on 8th Feb 2023. Apparently company might consider Share Buyback also.