Shares of Symphony hit an over six-year high at Rs 1,747.65, as they rallied 17 per cent on the BSE in Thursday’s intra-day trade, extending its previous two-day surge after the company announced buyback at Rs 2,500 per share via the tender offer route.
In the past three days, the stock of smallcap household appliances company has zoomed 42 per cent from a level of Rs 1,229.10 on Monday, August 5. Since April, it has more-than-doubled or zoomed 106 per cent from Rs 848.45.
The stock was trading at its highest level since May 2018. It had hit a record high of Rs 2,212.75 on January 11, 2018. In the past five years, Symphony has underperformed the market by gaining 37 per cent, as compared to 111 per cent surge in the BSE Sensex.
On Tuesday, August 6, Symphony’s board approved the proposal for buyback of up to 2,85,600 equity shares of the company, representing up to 0.41 per cent of the total number of equity shares, at a price of Rs 2,500 per equity share payable at cash for a total consideration not exceeding Rs 71.40 crore through the “Tender Offer” route.
Symphony, an Indian multi-national company with presence in over 60 countries is the world’s largest air cooler company.
The company recorded its highest-ever quarterly revenue & profit after tax (PAT) in the June 2024 quarter (Q1FY25). The company’s net profit jumped nearly four-fold to Rs 88 crore in Q1FY25, from Rs 24 crore in Q1FY24.
Revenue from operations increased by 76 per cent year-on-year (YoY) to Rs 531 crore from Rs 302 crore in a previous year quarter. Earnings before interest, tax, depreciation and amortization (EBITDA) margins improved 1170 bps at 21.0 per cent from 9.3 per cent. The company said improvement in EBITDA margin was due to gross margin expansion, positive operating leverage and strong performance of IMPCO Mexico and GSK China.
On the outlook, Symphony said it is poised for growth on the back of intensified heatwaves and climate changes, below normal trade inventory in India, Mexico, & Brazil, path-breaking and industry-leading innovative products, increasing focus on sustainable and eco-friendly products, geography specific products in India and overseas subsidiaries including washing machines in Mexico and thrust on semi-urban and rural markets, and adjacent product categories.
Government reforms for rural development, increased urbanisation, discretionary spending, and revised industrial norms, coupled with upcoming residential projects, are set to boost the demand for air coolers in India. Tower and personal air coolers are expected to gain market share due to evolving consumer preferences, growing e-commerce sales, and the proliferation of brand variants and SKUs, Symphony said in its FY24 annual report.
First Published: Aug 08 2024 | 12:55 PM IST
