BSE: 517385 | NSE: SYMPHONY | Consumer Durables - Domestic Appliances | Small Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Symphony Ltd is a good quality company.
The key valuation ratios of Symphony Ltd's currently when compared to its past seem to suggest it is in the Undervalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Symphony Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation Index Colour Code Guide ⓘ
| Jun'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 57.9% | 52.9% | 58.7% | 47.6% | 18.5% | 29.2% | 16.4% | 17.8% | 15.3% | 19.5% | - |
| Value Creation Index ⓘ | NA | 2.9 | 3.4 | 2.5 | 0.4 | 1.2 | 0.2 | 0.3 | 0.1 | 0.5 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 526 | 594 | 765 | 798 | 844 | 1,103 | 900 | 1,039 | 1,188 | 1,156 | 1,420 |
| Sales YoY Gr. | - | 13% | 28.7% | 4.4% | 5.7% | 30.7% | -18.4% | 15.5% | 14.3% | -2.7% | - |
| Adj EPS ⓘ | 15.3 | 21 | 23.1 | 25.9 | 13.1 | 25.6 | 14.8 | 15.6 | 15.1 | 20.2 | 26.5 |
| YoY Gr. | - | 37.3% | 9.9% | 12.2% | -49.3% | 95.4% | -42.4% | 5.5% | -3.1% | 33.7% | - |
| BVPS (₹) ⓘ | 43.8 | 60.7 | 66.5 | 87.4 | 95.2 | 91.4 | 108.5 | 120 | 125.9 | 108.6 | 104.8 |
| Adj Net Profit ⓘ | 107 | 147 | 161 | 181 | 91.8 | 179 | 103 | 109 | 106 | 139 | 182 |
| Cash Flow from Ops. ⓘ | 104 | 118 | 94.7 | 107 | 140 | 157 | 88.7 | 56.8 | 125 | 162 | - |
| Debt/CF from Ops. ⓘ | 0 | 0 | 0.2 | 0.2 | 1.4 | 1.1 | 2.1 | 3.9 | 1.6 | 0.9 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 9.2% | 6.5% | 8.7% | -2.7% | ||||
| Adj EPS ⓘ | 3.1% | 9% | 11% | 33.7% | ||||
| BVPSⓘ | 10.6% | 2.7% | 0% | -13.7% | ||||
| Share Price | 0.3% | 2.4% | 2.1% | 41.5% | ||||
Performance Ratio Colour Code Guide ⓘ
| Jun'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 36.8 | 35.3 | 41.2 | 33.6 | 14.4 | 27.5 | 14.8 | 13.7 | 12.3 | 17.1 | 24.8 |
| Op. Profit Mgn % ⓘ | 25.9 | 31.1 | 26.4 | 27.5 | 15.8 | 19.9 | 16.1 | 15.6 | 11.8 | 15.1 | 18.4 |
| Net Profit Mgn % ⓘ | 20.4 | 24.7 | 21.1 | 22.7 | 10.8 | 16.3 | 11.5 | 10.6 | 8.9 | 12.1 | 12.8 |
| Debt to Equity ⓘ | 0 | 0 | 0 | 0 | 0.3 | 0.3 | 0.2 | 0.3 | 0.2 | 0.2 | - |
| Working Cap Days ⓘ | 79 | 121 | 103 | 124 | 135 | 108 | 132 | 140 | 144 | 150 | 99 |
| Cash Conv. Cycle ⓘ | 19 | 17 | 20 | 24 | 29 | 20 | 33 | 53 | 58 | 54 | 26 |
Return on Equity has increased versus last 3 years average to 24.80%
Net Profit is growing at healthy rate in last 3 years 10.98%
Sales growth is good in last 4 quarters at 24.04%
Sales growth has been subdued in last 3 years 8.71%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 25.9 | 26.5 |
| TTM Sales (₹ Cr.) | 1,065 | 1,420 |
| BVPS (₹.) ⓘ | 110.1 | 104.8 |
| Reserves (₹ Cr.) ⓘ | 742 | 706 |
| P/BV ⓘ | 10.64 | 11.18 |
| PE ⓘ | 45.19 | 44.20 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 820.10 / 1878.95 |
| All Time Low / High (₹) | 0.13 / 2212.75 |
| Market Cap (₹ Cr.) | 8,043 |
| Equity (₹ Cr.) | 13.7 |
| Face Value (₹) | 2 |
| Industry PE ⓘ | 56.4 |
| Mar'24 | YoY Gr. Rt. % | Jun'24 | YoY Gr. Rt. % | Sep'24 | YoY Gr. Rt. % | Dec'24 | YoY Gr. Rt. % | |
|---|---|---|---|---|---|---|---|---|
| Sales (₹ Cr.)ⓘ | 268 | 20.7 | 264 | 14.5 | 304 | 19.2 | 321 | 39.4 |
| Adj EPS (₹) ⓘ | 2.2 | 15 | 2.1 | 8.5 | 2.6 | 30.7 | 2.4 | 29.4 |
| Op. Profit Mgn % ⓘ | 16.57 | -151 bps | 17.15 | 59 bps | 17.89 | 48 bps | 16.17 | 29 bps |
| Net Profit Mgn % ⓘ | 13.02 | -59 bps | 12.12 | -69 bps | 13.35 | 117 bps | 11.58 | -86 bps |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Particulars | Q2FY24 (Rs. Cr) | YoY Trend | Comments |
| Revenue | 275 | Flat | |
| EBITDA | 41 | 11% | |
| EBITDA Margin | 15% | +100 bps | On account of favourable product mix |
| PAT | 35 | 9% |
Good result. Domestic revenue grew 1% despite non-seasonal quarter.
|
Particulars |
Q1FY24 |
YoY Trend |
Comments |
|
Revenue |
302 |
-8% |
Impacted by unseasonal rains in peak summer months |
|
EBITDA |
26 |
-24% |
|
|
EBITDA Margin |
9% |
-100bps |
|
|
PAT |
24 |
-17% |
|
Weak performance on account of disrupted summer season.
|
Particulars |
Q1FY24 |
YoY Trend |
Comments |
|
Revenue |
302 |
-8% |
Impacted by unseasonal rains in peak summer months |
|
EBITDA |
26 |
-24% |
|
|
EBITDA Margin |
9% |
-100bps |
|
|
PAT |
24 |
-17% |
|
Weak performance on account of disrupted summer season.
1) Shift from unbranded to branded air cooler
In the recent past, shift in consumer’s preference from unbranded air cooler to branded air cooler has been observed. We see structural shift in consumer tastes towards branded products due to preference for elegant & compact design, additional features (like electronic remote, low sound), rising disposable income and increasing middle class population. This is expected to poise well for an organized market leader Symphony which has a high brand recall and strong distribution network in place.
2) Air Cooler vs Air Conditioner
The rising temperature is likely to increase the demand for home & commercial cooling solutions. Even though air conditioners are known for better cooling but considering low GDP per capitaand limited power supply in India, air coolers are the most preferred option in the country.
Apart from being cost effective, air coolers also have low maintenance comparedto air-conditioners. Advance air coolers can also act as a humidifier in dry weather. Thus, it is likely that the company will keep on generating high volumes in the near future.
3) Reducing seasonality effect through exports
Though the company deals in seasonal product, but it is trying to offset the seasonal effect by focusing on exports. The company has presence in 60 countries and sells its products through large format stores like Walmart, Sears, Famsa, Cotsco, Home Depot. The company is looking for more acquisitions in US, Middle East and Europe. This will help the company to make inroads in new geographies with help of established distribution network. Increase in exports will derisk Symphony’s dependence on cyclical Indian demand.
Notes to Valuation
Over the last 5 years, the overall sales of Symphony has increased at healthy ~34% CAGR. Subsequently, earnings (EPS) increased by more than 29% CAGR. Looking at its historical performance and expected future performance, we expect that the company will grow its EPS by 21% CAGR in the future led by volume growth and margin expansion in the exports market.
During the last 5 years, Symphony has traded in the range of 16 to 100 times of its EPS. We think that the company is fairly valued at 20 times of its EPS based on expected higher earnings growth and superior return on equity.
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| Stove Kraft | 773.7 | 25 (3.3%) | Small Cap | 1,364 | 12 | 2.6 | 62.4 | 5.3 |
| Symphony | 1,177.6 | 6.3 (0.5%) | Small Cap | 1,156 | 26.5 | 12 | 44.2 | 11.2 |
| PARTICULARS | Jun'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 526 | 446 | 765 | 798 | 844 | 1,103 | 900 | 1,039 | 1,188 | 1,156 |
| Operating Expenses ⓘ | 393 | 309 | 565 | 580 | 711 | 889 | 759 | 877 | 1,048 | 986 |
| Manufacturing Costs | 11 | 7 | 8 | 5 | 18 | 19 | 16 | 12 | 15 | 15 |
| Material Costs | 240 | 201 | 365 | 385 | 453 | 583 | 497 | 571 | 667 | 601 |
| Employee Cost | 46 | 43 | 68 | 73 | 103 | 113 | 103 | 116 | 124 | 121 |
| Other Costs ⓘ | 96 | 59 | 125 | 117 | 137 | 174 | 143 | 178 | 242 | 248 |
| Operating Profit ⓘ | 132 | 136 | 199 | 218 | 133 | 213 | 141 | 162 | 140 | 170 |
| Operating Profit Margin (%) | 25.2% | 30.6% | 26.1% | 27.3% | 15.8% | 19.4% | 15.6% | 15.6% | 11.8% | 14.7% |
| Other Income ⓘ | 34 | 21 | 43 | 56 | 39 | 55 | 31 | 40 | 50 | 51 |
| Interest ⓘ | 1 | 0 | 1 | 2 | 8 | 13 | 12 | 10 | 12 | 12 |
| Depreciation ⓘ | 4 | 4 | 7 | 7 | 10 | 21 | 21 | 24 | 26 | 26 |
| Exceptional Items ⓘ | 0 | 12 | 0 | 0 | -24 | -4 | -7 | 0 | 0 | -2 |
| Profit Before Tax ⓘ | 161 | 165 | 235 | 265 | 130 | 230 | 131 | 168 | 152 | 181 |
| Tax ⓘ | 45 | 46 | 69 | 72 | 39 | 49 | 24 | 47 | 36 | 33 |
| Profit After Tax | 116 | 118 | 166 | 193 | 92 | 182 | 107 | 121 | 116 | 148 |
| PAT Margin (%) | 22.0% | 26.6% | 21.7% | 24.1% | 10.9% | 16.5% | 11.9% | 11.6% | 9.8% | 12.8% |
| Adjusted EPS (₹) | 16.6 | 16.9 | 23.8 | 27.5 | 13.2 | 25.9 | 15.4 | 17.2 | 16.6 | 21.5 |
| Dividend Payout Ratio (%) | 42% | 74% | 19% | 16% | 34% | 89% | 33% | 52% | 30% | 61% |
| PARTICULARS | Jun'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 306 | 319 | 465 | 612 | 666 | 639 | 759 | 839 | 881 | 749 |
| Share Capital ⓘ | 7 | 7 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 |
| Reserves ⓘ | 299 | 312 | 451 | 598 | 652 | 625 | 745 | 825 | 867 | 735 |
| Minority Interest | 0 | 0 | 0 | 0 | 3 | 4 | 5 | 5 | 0 | 0 |
| Debt | 0 | 0 | 19 | 26 | 188 | 173 | 184 | 221 | 169 | 120 |
| Long Term Debt | 0 | 0 | 0 | 0 | 124 | 72 | 140 | 113 | 83 | 54 |
| Short Term Debt | 0 | 0 | 19 | 26 | 64 | 102 | 44 | 108 | 87 | 66 |
| Trade Payables | 40 | 50 | 55 | 58 | 129 | 115 | 136 | 149 | 166 | 149 |
| Others Liabilities ⓘ | 87 | 102 | 128 | 124 | 105 | 187 | 159 | 177 | 220 | 210 |
| Total Liabilities ⓘ | 434 | 470 | 667 | 819 | 1,091 | 1,118 | 1,243 | 1,393 | 1,436 | 1,228 |
Fixed Assets | ||||||||||
| Gross Block | 160 | 193 | 186 | 138 | 301 | 402 | 458 | 485 | 504 | 492 |
| Accumulated Depreciation | 92 | 115 | 107 | 56 | 64 | 84 | 105 | 130 | 153 | 165 |
| Net Fixed Assetsⓘ | 68 | 77 | 79 | 82 | 237 | 318 | 354 | 355 | 351 | 327 |
| CWIP ⓘ | 0 | 3 | 0 | 0 | 6 | 2 | 0 | 0 | 0 | 0 |
| Investmentsⓘ | 242 | 162 | 292 | 422 | 458 | 412 | 484 | 500 | 527 | 373 |
| Inventories | 46 | 55 | 77 | 80 | 119 | 118 | 118 | 173 | 250 | 231 |
| Trade Receivables | 33 | 47 | 52 | 62 | 105 | 121 | 166 | 208 | 115 | 168 |
| Cash Equivalents | 8 | 46 | 47 | 23 | 54 | 25 | 38 | 68 | 57 | 44 |
| Others Assetsⓘ | 37 | 79 | 120 | 152 | 111 | 121 | 81 | 89 | 137 | 86 |
| Total Assets ⓘ | 434 | 470 | 667 | 819 | 1,091 | 1,118 | 1,243 | 1,393 | 1,436 | 1,228 |
| PARTICULARS | Jun'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 104 | 89 | 95 | 107 | 140 | 157 | 89 | 57 | 125 | 162 |
| PBT ⓘ | 161 | 165 | 235 | 265 | 130 | 230 | 131 | 168 | 152 | 181 |
| Adjustment ⓘ | -25 | -26 | -35 | -45 | 3 | -1 | -7 | 2 | 10 | -4 |
| Changes in Working Capital ⓘ | 16 | -9 | -38 | -49 | 51 | -16 | -1 | -76 | 18 | 27 |
| Tax Paid ⓘ | -49 | -41 | -68 | -65 | -44 | -57 | -34 | -36 | -54 | -43 |
| Cash Flow From Investing Activity ⓘ | -37 | 70 | -65 | -102 | -250 | 78 | -53 | 6 | -11 | 193 |
| Capex | -14 | -4 | 91 | -70 | -9 | -17 | -16 | -9 | -11 | -6 |
| Net Investments | -30 | 54 | -176 | -46 | -67 | 93 | -47 | 6 | -24 | 191 |
| Others ⓘ | 7 | 19 | 20 | 13 | -174 | 3 | 9 | 10 | 24 | 8 |
| Cash Flow From Financing Activityⓘ | -66 | -145 | -5 | -29 | 118 | -241 | -21 | -34 | -124 | -367 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 0 | 6 | 162 | -15 | 7 | 0 | -30 | -28 |
| Interest Paid ⓘ | -1 | 0 | 0 | -2 | -7 | -11 | -11 | -9 | -10 | -10 |
| Dividend Paid ⓘ | -52 | -120 | -20 | -28 | -31 | -171 | -8 | -50 | -70 | -42 |
| Others ⓘ | -13 | -25 | 15 | -6 | -6 | -44 | -10 | 25 | -13 | -286 |
| Net Cash Flow ⓘ | 1 | 13 | 25 | -25 | 7 | -6 | 14 | 29 | -10 | -12 |
| PARTICULARS | Jun'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 41.41 | 37.89 | 42.44 | 35.77 | 14.33 | 27.85 | 15.36 | 15.12 | 13.47 | 18.18 |
| ROCE (%) | 57.9 | 52.88 | 58.69 | 47.61 | 18.5 | 29.17 | 16.35 | 17.75 | 15.3 | 19.54 |
| Asset Turnover Ratio | 1.27 | 0.99 | 1.34 | 1.07 | 0.88 | 1.06 | 0.85 | 0.83 | 0.87 | 0.9 |
| PAT to CFO Conversion(x) | 0.9 | 0.75 | 0.57 | 0.55 | 1.52 | 0.86 | 0.83 | 0.47 | 1.08 | 1.09 |
| Working Capital Days | ||||||||||
| Receivable Days | 26 | 33 | 24 | 26 | 36 | 35 | 52 | 63 | 48 | 43 |
| Inventory Days | 29 | 41 | 32 | 36 | 43 | 37 | 43 | 49 | 63 | 73 |
| Payable Days | 57 | 81 | 52 | 54 | 76 | 76 | 92 | 91 | 86 | 96 |
Symphony, an Indian Multi-National Company with presence in many countries is the world’s largest manufacturer of air-coolers. From inventions to innovations, energy responsibility to environment stewardship, Symphony is a market leader which has been cooling customers for generations. The massive supremacy of Symphony coolers in the residential, industrial and commercial segments has made the brand synonymous with ‘cooling’.
Founded in 1988, in Gujarat, India, Symphony Limited established a new category of evaporative air-cooling in India, taking it to the globe. At Symphony, research and development and engineering technology is a sustainable competitive advantage. The company delivers market-leading products with design innovation, improved energy conservation, distinctive styling and customer-centric design. As a pioneer in the air-cooling industry, Symphony develops breakthrough technologies to combat climate change. It is providing solutions for affordable cooling and comfortable environments for maximum efficiency, productivity and wellbeing.
Symphony Limited is a publicly traded company delivering value to its stakeholders in the most profitable and effective way. Symphony Limited has been awarded the Guinness World Record for creating the world’s largest functioning air coolers. The company also provides solutions through its world’s largest air cooling project In Mecca-Madina at Hajj Camp and Ramdev Patanjali Yoga Bhavan, Haridwar, India.
Business area of the company
The company is engaged in manufacturing and trading residential, commercial and industrial air coolers in the domestic and international markets. The Company operates in two sections: manufacture of air-coolers and treasury management. It provides tower, personal, desert, room and window air-coolers for residential use. Its commercial air cooling solutions are installed in open restaurants, party plots and large halls, among others. Its industrial air-coolers are used for factories, offices, schools, malls, assembly halls, warehouses and metro stations, among others. The Company also offers services to banks, auto industry, packaging, distilleries and railways.
Products
Awards
Milestones
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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