Symphony Stock Price Analysis

9 нояб. 2023 г.

SYMPHONY The Consumer Durable sector in India has attracted significant investments over the years which resulted in increasing demand and also facilitated by the rise in disposable income. Indian Appliance and Consumer Electronics Industry’s market size was 21.49 billion USD in FY17 and is expected to be at 48.37 billion USD by FY22. The unorganized markets will provide scope for the rural markets to grow in fast paces because of the increase in the shift to organized markets.

The key growth drivers for the consumer durables sector are modernization, changing lifestyles, increasing awareness, rising incomes, convenient shopping options, etc. The relaxation by the government for FDI will also boost the sector.

Symphony is India’s famous brand in the consumer durable segment nationally and globally. Let's study some key parameters of the company:

• The net sales of the company is Rs 884.49 Cr. It has increased from the previous year sales of Rs 641.31 Cr. The sales growth of the company was outstanding at 37.92 %.
  
• The sales figure can be matched with inventory turnover to check whether it's justifiable or not. The turnover ratio for Symphony is 9.63 times. Symphony efficiently manages its assets.
  
• The PAT growth rate of 48.72 % is good for the company. The net profit compared to the % of sales is known as PAT margin which is 18.63 %.
  
• The growth of EPS should ideally be around the PAT growth rate. For Symphony EPS growth rate is 48.72 % which is nearby the PAT growth rate . The Earning per share for the latest quarter is 7.14 Rs.
  
• Company’s assets have given an average return of 13.15 % for the 3 years and equity gave an average return of 16.29 % for the 3 years.
  
• Symphony has a Debt-to-equity ratio of 0.02 which is an indicative measure of financial risk when compared to its peers.
  

Seasonality Data
Looking at the seasonal data from the past 10 years, it appears that the stock typically experiences an upward trend from its major support of 800 in November and December. Additionally, there has been an observed 35% to 40% increase from January to February.

Strengths

• Strengths of 22.86% in the last 5 years.
  
• Company’s PEG ratio is 0.78.
  
• The company has an efficient Cash Conversion Cycle of 38.38 days.
  
• Company has a healthy liquidity position with current ratio of 2.60.
  
• The company has a high promoter holding of 73.39%.
  

Limitations
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• he company has shown a poor profit growth of -3.94% for the Past 3 years.
  
• The company has shown a poor revenue growth of 7.29% for the Past 3 years.
  
• Company has contingent liabilities of 211.46 Cr.
  
• The company is trading at a high PE of 37.83.
  

Technical view: SYMPHONY BUY AROUND 830-800 TARGET 960-1070-1200.
TIME DURATION 3 MONTHS