Comments
Axis Direct
Symphony (Buy)
CMP: ₹1,345.95
Target: ₹1,469
Symphony is the largest air cooler company in India with about 50 per cent market share of organised market in value terms and upwards of 40 per cent in volume terms. ‘Symphony’ ranks amongst top trusted brands in air cooling segment and has become a generic name for air coolers.
Rising temperature has made coolers a necessity in summer; nearly 55 per cent of the population lives in hot and dry climatic conditions. Not more than 15 per cent of the households own cooler thus making it an enviable growth opportunity. Moreover, a large part of market (about 70 per cent) is still dominated by unorganised segment.
Symphony operates on asset light business model requiring low capital investments; it outsources almost all its production to nine different OEMs (original equipment manufacturers) thus ensuring that it is not dependent on any one vendor. This asset light strategy enables the management to concentrate on design, development and innovation along with marketing the product thus generating high return on capital employed (RoCE).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.