Air-conditioner manufacturers are doing roaring business across India these days.

And so are air-coolers producers. Even though it is more of seasonal demand, which soars during the scorching Indian summers, the opportunity is so big that discerning equity investors are making money all the through year. Ahmedabad-based Symphony commands over 50 per cent market share in India’s organised air cooler market in value terms and 42 per cent in volume terms, but when the unorganised market is counted, the volume share falls to just about 14 per cent. That actually suggests a huge opportunity in an economy which has just made a paradigm shift into an organised market with the introduction of the goods and services tax (GST) last July. Equity investors were quick to spot the opportunity.

That is reflected in the 23 per cent jump in Symphony shares in last one year, compared with a 15 per cent rise in the BSE Sensex. The stock has a long winning story, having risen some 44,114 per cent in last 10 year.

The stock traded at Rs 1,857 on Friday compared with Rs 4.20 on the same day in 2008.

This means if anyone would have invested Rs 1 lakh in the stock in 2008, it would have become over Rs 4 crore by now. What many investors do not know if the fact that Symphony had almost gone bankrupt just about 13 years back.

It has risen from the ashes to become a global leader in air coolers. Promoted by Achal Anil Bakeri of Bakeri Group, one of the oldest realty players in Gujarat, Symphony was incorporated in 1988 and listed on the bourses in 1993.

The promoters held 75 per cent stake in the company as of December 31, 2017. Analysts say Symphony’s biggest appeal is that it is a global leader in air-cooler manufacturing by now and its books are debt-free.

They see at least 15 per cent bumpup in the stock this summer. Symphony will ride the post-GST shift in the market from unorganised to organised players.

Its strong track record of product innovation and a unique distribution model will help cement further gains, they say. “After suffering financial stress and restructuring, Symphony focussed on a ‘one product, many markets strategy’ post 2005 and this has clicked,” HDFC Securities said in a report. The company’s revenues, Ebitda and profit after tax have increased at compounded annual growth rate (CAGR) of 35 per cent, 49 per cent and 54 per cent, respectively, in last 10 years.

Ebidta is essentially net income with interest, taxes, depreciation and amortization added back to itHDFC Securities just initiated coverage of Symphony with a ‘buy’ rating and has a target price of Rs 2,150.

The positive view on the cooler maker came on the back of rising demand for cooling products driven by growing disposable incomes, cheaper financing options and increasing up-country penetration of electricity.

Consistent product innovation, growing distribution reach (40,000 dealers targeted as compared with 30,000 now) over the next two years and untapped opportunities in the rest of the world markets will further aid Symphony.

The company commands highest return on capital employed (RoCE) in the consumer durables space.

“This is because of its strategy of outsourcing manufacturing, channel distribution against advances and high operating margins (over 25 per cent) in line with the pricing power that its products command,” HDFC Securities said. RoCE measures a company’s profitability and the efficiency with which its capital is employed. “Cooling products (fans, coolers and ACs) are expected to report strong growth, since the summer of 2018 is likely to be harsh (as per IMD).

We model sales and Ebitda growth of 15 per cent and 32 per cent YoY (14/9% in 4QFY17) for our appliances universe.

Havells, Crompton and Symphony are among our top picks,” the brokerage said. ICICIdirect.com, India’s largest brokerage house by client numbers, has projected Symphony to report 25.10 per cent year-on-year rise in revenue for the quarter ended March 31, 2018, while Ebitda and PAT are projected to grow 35.40 per cent YoY and 19.60 per cent YoY, respectively. Symphony is among the top picks of the brokerage. AK Prabhakar, Head of Research, IDBI Capital Market, is positive on the stock.