On Wednesday, an analyst from Investec increased the price target on Symphony Ltd (SKC:IN) shares to INR1,790.00, up from INR1,730.00, while reiterating a Buy rating.
The revision follows Symphony's impressive second-quarter performance, with consolidated revenue and profit after tax (PAT) growing 15% and 60% year-over-year, respectively. The results exceeded the estimates of both Investec and the consensus, with PAT outperforming by 13-23%.
The significant growth was attributed primarily to Symphony's domestic operations, where earnings before interest, taxes, depreciation, and amortization (EBITDA) and PAT surged by 32-36% year-over-year. This performance was substantially higher than expectations.
The management highlighted that channel inventory levels are currently lower than usual, which is anticipated to be favorable for the company's performance in the upcoming quarters.
This expectation is supported by a marked increase in customer advances, as indicated by the rise in other current liabilities on the company's balance sheet.
Symphony, which has historically focused on a single product for over a decade, is re-entering the water heater market—a segment it had exited in the late 2000s. This strategic move is expected to nearly double the company's domestic market potential.
Based on these developments and the strong quarterly results, Investec has raised its earnings per share (EPS) estimates for Symphony for the fiscal years 2025 to 2027 by 3-7%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.