Symphony
Post the announcement of its first quarter ended 30th Sept 2014 numbers, the stock price shot up to a new high at Rs.1608.70 with huge volume trade. And the performance led mainly by spike up in volume sales despite lower realisations was indeed exuberant. This Ahmedabad based company mainly sells air coolers and it looks like things have really heated up during Q1 (30th June year ending) as the company seems to have ended the quarter on a high note. The company posted net sales for the quarter at Rs.103 crore, up 42% (YoY). Other income of Rs.8 crore helped boost over revenue. Despite a 36% jump in operating expenses and despite interest cost jumping up 12 times and 80% rise in tax, it ended the quarter with a net profit at Rs.22 crore, up 51%.
Of the net sales of Rs.103 crore, Rs.96 crore comes from domestic sales and Rs.7 crore from exports. This quarter, it volumes rose 38% at 1,63,987 units sold but sales realization was down sequentially, from Rs.6927/unit to Rs.6183/unit. YoY, sales price was up from Rs.6183/unit. The company is almost debt free, has a small equity of Rs.7 crore and reserves stands pretty healthy at Rs.226 crore. Its EPS for the quarter stands at Rs.6.18 (Rs.2 face value), with annual EPS of Rs.25, discounting the current price by 61 times. Clearly, very high investor fancy hence higher PE.