YES Securities has given Buy recommendation for Symphony with a target price of Rs. 1223 in its research report issued on Oct 20, 2022

YES Securities’ research report on Symphony

Domestic business continues to see positive traction with better off‐season revenue and optimism with new product launches. Company’s consolidated revenue was lower than estimated as performance of Australian subsidiary Climate technologies was subdued and is expected to be more skewed towards Q3 and Q4 vis‐à‐vis earlier. Management expects the revenue for climate technologies to be made up in ensuing quarters as there supply to USA has been delayed and there is no cancellation of orders. Gross margins are largely stable and impact of lower commodity prices and price increase in Q1 will benefit in ensuing quarters. EBITDA margin was impacted on account of few one‐offs which include incremental cost undertaken in market research, export to a Brazilian subsidiary on CIF basis leading to incremental freight expenses and higher warranty expenses. Domestic business is expected to continue its growth momentum, while, international business turnaround is expected to be gradual. Considering the above, we continue to maintain BUY rating as current stock price provides good entry point. 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.

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