Stock Outlook: Symphony Ltd.

by khalid on 09/09/2011 · 0 comments

The company is a leading provider of air conditioners and air cooling systems. The company started in 1988 and has established itself today as the world’s leading air solution provider. It has also forayed into providing water heating systems in the recent years. Symphony has also forayed into exports in almost all major continents of the world.

On the financial forefront, the company’s revenues have declined considerably approximately 35% as compared to last year despite strong growth seen on the domestic forefront. Such fall in the revenues is attributed to earlier monsoons and somewhat cooler summers.

Also PAT has shown a decline of 42% to Rs. 117 million. EPS had however shown a growth of 21% approximately.  The stock market value is showing great valuations and the trend is expected to continue, given the current volumes.

The company is expected to grow at a 2 year CAGR of 19% with current expansion plans in place. Change in the management of the company and its foray into newer countries shall boost performance. We have also seen a growth in sales due to demand rise domestically and such continuation is likely to continue as the efficiencies from higher sales are adding to the revenues and consequently, profits.

The market capitalization of the stock on Nifty is USD 181 million while Beta of the stock is 0.54. The 30 day average of daily volumes stands good at 1169 trades on Nifty.

‘Bell the Bull’ feels that the CMP is to reach a higher forefront within the next quarter to about Rs. Rs.1100 from the present Rs.1000 levels.

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