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Symphony View CMP 945

Symphony Limited, and its subsidiaries are engaged in manufacturing and trading of residential, commercial and industrial air coolers, both in the domestic and international markets. Symphony products have been endorsed by industrial giants like General Electric (US), Lear Corporation (US) and Walmart (US).


Brand Leadership:

Symphony in the market leadership around 50% in FY 2019-20 in their segment. 70+ Models offer for FY19-20. INR 240 Cr spent in brand buildings in last ten years out of 240 Crs INR 94 Cr spent in last 3 years. Symphony launched and marketed industrial and commercial coolers, manufactured for the first time in India. The company no longer just cools residential spaces; it is empowered to cool virtually all spaces- interior or exterior – anywhere. The Indian air-cooler market has been growing at a CAGR of more than 11% in the last five years. 

Benefit of Global warning with less maintenance. The price-value proposition, lower energy consumption and effectiveness in dry areas make air coolers superior to air-conditioners.

Residential and industrial air cooler markets have been growing with a CAGR of approximately 20% and 8% respectively in the past four years.


Debt free company, consistent ROE around 28% and ROCE around 29%. Liquidity position is also sound in the company average debtor receivables around 31 days, Inventory turnover 21 days. Operating profit margin in the FY 19-20 was around 27%. Operating cash flow was also good in March 2020 and it was continuously increasing trend in YoY. Strong promoter holding around 75%, FIIs hold around 4.9% and DIIs hold around 10.1% in June 2020. 

Revenue in March 2020 was around INR 1,103 Cr Vs. 844 Cr in March 2019 therefore up by 30% in YoY. PAT was around INR 230 Cr Vs. 130 Cr in March 2019 therefore up by 77% in YoY. Last 5 year sales growth was more than 17% and PAT growth was more than 11%. EBITDA in FY20 was around INR 248 Cr Vs. 168 Cr in March 2019. 

Risk:  Product Risk: Air-cooling products may lose their relevance. An economic slowdown prompted by the coronavirus outbreak could impact offtake eg. Q1FY20 was almost wiped out and Q2 and Q3 recovery will also be uncertain due to monsoon period and winter period where cooler doesn’t work in the humid environment.

Strong support at INR 840 level. Current resistance at 965-970 level once it cross next level 990/1050. Long term investor can continue with the company and any corrections will give good opportunity to add.