Shares of this consumer electronics stock under the ‘small-cap’ category traded flat in Thursday’s session after HDFC Mutual Fund bought a stake in the company via a Bulk Deal. The company’s stock portrays a price-to-earnings (P/E) ratio that is less than the industry average.
With a market capitalization of Rs 6,053.39 crores, the stocks of Symphony Limited opened their trading hour on Thursday at Rs 878.80 and currently trades at Rs 877.85, a flat movement as compared to the previous close of Rs 876.25 apiece.
According to the Bulk Deal data available with the National Stock Exchange (NSE), HDFC Mutual Fund, on 20th December 2023, bought 6 lakh shares of the company at an average trading price of Rs 880 per equity share. On the other side, “Swayat Trading Company” sold the shares of the same quantity and at the same trading price.
According to the shareholding data available for the quarter ended September 2023, HDFC Mutual Fund, under HDFC Mid-cap Opportunities Fund, already holds 40.15 lakh shares of the company equating to a 5.82 percent stake.
Coming onto the recent quarterly financials, the company’s basic business indicators such as operating revenues and net profits have moved in opposing directions. The former, on one end, slipped from Rs 302 crores during Q1FY23-24 to Rs 275 crores during Q2FY23-24, and, the latter, due to effective cost management, rose from Rs 24 crores to Rs 35 crores.
The profitability metrics showed negative movements with the return on equity (RoE) dipping from 15.12 percent during FY21-22 to 13.47 percent during FY22-23, and, the return on capital employed (RoCE), in congruence, fell from 17.75 percent to 15.30 percent.
As per the recent presentations, the company portrays a positive outlook for its operations overseas supported by intensified heatwave and climate change as well as strong tailwinds for air coolers.
Founded in 1988, Symphony Limited is engaged in the business of manufacturing and trading commercial, residential, and industrial air coolers and other appliances within as well as outside India. The company offers products such as air coolers, tower fans, portable coolers, etc.
Written by Amit Madnani
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