Symphony share worth: Add Symphony, goal worth Rs 1300: HDFC Securities

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HDFC Securities has add name on with a goal worth of Rs 1300. The present market worth of Symphony Ltd. is Rs 1068.4.

Time interval given by analyst is one 12 months when Symphony Ltd. worth can attain outlined goal.

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Symphony Ltd., included within the 12 months 1988, is a Mid Cap firm (having a market cap of Rs 7460.91 Crore) working in Shopper Durables sector.



Symphony Ltd. key Merchandise/Income Segments embrace Air Coolers, Others and Different Working Income for the 12 months ending 31-Mar-2021.

Financials

For the quarter ended 30-09-2021, the corporate reported a Consolidated Whole Earnings of Rs 229.00 Crore, down -3.78 % from final quarter Whole Earnings of Rs 238.00 Crore and up 15.08 % from final 12 months identical quarter Whole Earnings of Rs 199.00 Crore. Firm has reported internet revenue after tax of Rs 30.00 Crore in newest quarter.

Funding Rationale
Symphony’s home enterprise remained below stress on account of excessive commerce stock. Home income was at INR 1,350mn (HSIE INR 1,446mn), up 29% YoY, down 15% on a two-year CAGR. The corporate remained optimistic and is specializing in new launches and initiatives to revive home enterprise. Efficiency in steady summer time season will replicate the end result of such efforts. Exports remained unstable on a quarterly foundation, registering income of INR 50mn (HSIE INR 95mn) with RoW income down 1% YoY (non-seasonal quarter). Gross margin expanded 36bps YoY (+103bps in Q2FY21, +212bps in Q1FY22, HSIE -21bps) to 48.6%. EBITDA margin got here in at 25% (HSIE 24.3%), rising 21% YoY (HSIE 29%). CT noticed restoration in working profitability in H1FY22 after exhibiting dismal margin final 12 months. IMPCO, too, noticed margin restoration, whereas GSK China remained weak. Given the corporate’s management place and progressive product pipeline, the brokerage believes it’s nicely positioned to realize from a robust season (missed the final two seasons). It values the inventory at 35x P/E on 24E EPS and derive a TP of INR 1,300.

Promoter/FII Holdings
Promoters held 73.25 per cent stake within the firm as of 30-Sep-2021, whereas FIIs owned 4.25 per cent, DIIs 9.46 per cent.

(Disclaimer: Suggestions given on this part or any experiences hooked up herein are authored by an exterior occasion. Views expressed are that of the respective authors/entities. These don’t signify the views of Financial Occasions (ET). ET doesn’t assure, vouch for, endorse any of its contents and hereby disclaims all warranties, categorical or implied, referring to the identical. Please seek the advice of your monetary adviser and search impartial recommendation.

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