Symphony Ltd climbed 17 per cent in Thursday's trade, taking its three-day winning run to 42 per cent, as the air cooler maker's Q1 earnings surpassed bullish expectations, with domestic air-cooling business growing at 118 per cent YoY. The rerating catalyst has played out well, said analysts who believe the stock has rallied too far and one can look to buy it only on healthy corrections.
YES Securities said demand traction in the domestic market is strong and Symphony's subsidiaries saw performance improvement in Q1. But the brokerage finds stock valuations demanding, following a 94 per cent rally year-to-date.
"We had upgraded the stock to BUY in Q4 and stock has rallied 51 per cent post our upgrade. Given the strong performance, our FY25 and FY26 EPS estimates gets increased by 18 per cent and 15 per cent respectively. However, we assign 'Neutral' rating as stock price has seen significant appreciation and now value the stock at 45 times with target price of Rs 1,549," YES Securities said.
The stock should be bought on every correction, YES Securities said.
Symphony shares rose 16.71 per cent to Rs 1,747.65. The stock has climbed 42 per cent in the past three sessions. The company has announced a share buyback plan, whose price is set at Rs 2,500.
Nuvama said the improvements in overseas subsidiaries’ operations and low channel inventories should help Symphony in coming quarters. It said the seasonality has continued to play a larger role in Symphony's performance.
"The company announced its foray into storage water heater, which we believe is a step in the right direction," it said.
This brokerage has introduced FY27E and rolled forward its estimates to September 2025, suggesting a target price of Rs 950.
"Given the seasonality and recent rally, we maintain ‘REDUCE’," it said.
Symphony recorded a strong financial performance in the June quarter, marked by a 76 per cent YoY increase in consolidated RFO, coupled with a significant improvement in gross and Ebitda margins, said Arihant Capital Markets.
"The company's strategic product launches and expanding market presence, particularly in the B2C segment, have driven impressive growth. With strong digital engagement and promising subsidiary performance, Symphony Ltd is well-positioned for continued growth. Our positive outlook is supported by management’s confidence in maintaining historical CAGR growth," it said. Symphony is confident that turnaround in international subsidiaries is sustainable and performance would further improve once CT Australia turns around. The company is witnessing increased traction in the domestic air-cooling market with South and East witnessing uptick ,which have not been traditional air-cooling market.
"Symphony is also entering into water heater category where company will provide feature rich water heater at competitive prices. Considering strong demand traction in the domestic market and sustained improvement of subsidiaries performance, we remain positive on the air-cooling space," YES Securities said.