The shares of the world’s largest air-cooler manufacturer surged more than 40% over the last four trading sessions, delivering impressive returns in a short span. Let’s explore the factors that contributed to this substantial increase in stock price.
On Thursday, Symphony Ltd shares hit a 52-week high of ₹1,747.65 per share, marking an intraday gain of 17%. The company now boasts a market capitalization of ₹11,755 crore.
Symphony Limited is an India-based company specializing in air cooling solutions. It operates across residential, commercial, and industrial sectors, catering to both domestic and international markets.
The company’s operations are divided into two segments include the Air Cooling and Other Appliances. Its product range includes Residential Coolers, Commercial Coolers, Large Space Venti-Cooling Systems, Tower Fans, Personal Coolers, Desert Coolers, Tower Coolers, and Portable Coolers.
Symphony is a leading global air-cooling brand with a presence in over 60 countries, including Australia, the USA, Brazil, and numerous nations across Africa and Southeast Asia.
The company specializes in producing residential, commercial, and industrial air coolers, with air cooler sales accounting for 97% of its revenue. In the organized domestic air coolers market, Symphony Ltd holds around 50% of the market share by value and over 40% by volume.
Here are the factors that contributed to the rise in the stock price:
Buyback
On August 6th, the company’s board approved a buyback of up to 285,600 fully paid-up equity shares, representing 0.41% of the total shares, at a price of ₹2,500 per share, amounting to a total buyback size of ₹71.40 crore.
The company has set Wednesday, August 21, 2024,, as the record date to determine the entitlement and list of equity shareholders eligible to participate in the buyback. On this date, shareholders will also receive the letter of offer and tender form related to the buyback.
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Results and dividend
The company reported robust results for the June quarter, with a net profit growth of 267% year-on-year, reaching ₹88 per share, and revenue growth of 76% to ₹531 crores.
EBITDA for the quarter stood at ₹111 crore, compared to ₹26 crore a year ago. Additionally, Symphony declared its first interim dividend of Re 1 per share for FY25.
New products
Additionally, the company has announced plans to introduce up to 17 new air cooler models to meet a range of cooling needs, alongside expanding its the existing product line. The innovative new lineup features the Symphony “Silenzo,” “MaxWind,” “Arctic Circle,” and “Air Force” series.
In the June quarter, the company generated approximately 92% of its revenue from the Indian market, with the remaining 8% coming from international markets.
Over the past six months, Symphony Ltd’s shares have risen by 81%, and over the the last 12 months,, they have increased by 95%.
Based on the financial year results, the company has demonstrated strong performance, with a 27.5% increase in net profit from ₹116 crores to ₹148 crores for FY23 to FY24. However, revenue experienced a slightly decline, decreasing from ₹1,188 crores to ₹1,156 crores over the same period.
Written by Omkar Chitnis
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