Symphony stock: Climate Technologies buy to double foreign market share

The acquisition is in line with Symphony's strategic plan of expanding its international reach, extending to industrial cooling solutions and launching technology-driven coolers

After shedding over 27 per cent since May, given the low demand conditions in the summer season, the Symphony stock gained 4 per cent after it announced plans to acquire Australia's Climate Technologies. The over Rs 2-billion acquisition will provide India's largest air cooling company a 50 per cent organised market share access to the Australian and US markets. 

Further, given the opposite seasonal trends in Australia and India, the business is expected to de-risk its revenue flow. The valuations, according to analysts, are attractive at 7.3 times the enterprise value to operating profit and 0.7 times the enterprise value to