Stock Review: Symphony Comfort Systems

Symphony Comfort Systems is world's largest air-cooler company. They have their presence in about 2,300 cities and towns with 600 retail outlets. This company has been consistently posting good profits year-on-year.

The company has its year ending in June. March and June quarters have always been the best quarters for the company. If we take nine months results of the company into consideration in March quarter, the company has posted an EPS of about Rs 30. We are extrapolating the same trend for June quarter as well.

For the year-ending FY11, the company should have an EPS of close to Rs 85. The company is now presently having two manufacturing plants – in India and overseas. They have been setting up a third SEZ unit in Surat to augment their export share, which is at about 18% of their total turnover.

For nine months, they have a topline of close to Rs 175 crore. They will be ramping up their export turnover in the next twelve months' time once the Surat unit goes on stream. They can rise to about 30% of the total turnover.

In FY12 June ending, company should be able to post an EPS of close to Rs 115. The shareholding pattern is quite interesting. Promoters are holding 75% stake and a few long-term investors are holding 10% stake. There is a very low float.

The stock looks little expensive because of the high price. It is presently ruling at about Rs 1,170-1,180. This stock has a quite good potential, if somebody can keep a view of about six months' time. They should be able to see a price of Rs 1,500.