“Analysts cut FY15E, FY16E and FY17E earnings estimates by 4%, 3% and 3% to reflect lower volume growth. Given the substantial run-up in stock price analysts believe valuations are now rich at 38x FY17E EPS”, added report.
Since January 2015, the stock had rallied 62% from Rs 1,947 to Rs 3,151 on April 21, compared with 1% rise in the CNX Nifty.
Meanwhile, Symphony board has empowered the CMD/ED to explore the potentiality of synergy of convergence with the affairs of the company to accomplish its broader vision to tap the export market.
The company said considering the international practice and non-disclosure undertaking, it is desirable to maintain complete confidentiality at this primitive stage and therefore further information will be revealed at appropriate time, if needed.
According to analysts, this is in line with its intention of looking at inorganic opportunities in overseas markets to gain market access. Some portion of cash on books will be utilized for inorganic opportunities, while rest will stay in company as a safety buffer.
At 1208 hours, the stock was down 17% at Rs 2,325 on the NSE and has seen a combined 95,982 shares changing hands on the counter on the NSE and BSE.