Astral Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 35935.37 Crore) operating in Plastics sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1132.80 Crore, up 25.37 % from last quarter Total Income of Rs 903.60 Crore and up 80.10 % from last year same quarter Total Income of Rs 629.00 Crore. Company has reported net profit after tax of Rs 176.50 Crore in latest quarter.
Investment Rationale
Considering the robust growth outlook and the expected improvement in margins in both pipe and adhesive businesses, the brokerage increases revenue and PAT estimates by 3.3%/3.1% and 8.4%/7.3%, respectively, for FY22E/FY23E. It expects ASTRA to report overall revenue/PAT CAGRs of 24.9%/33.2%, respectively, over FY21-FY23E. With the recent surge in stock price, it downgrades it to ADD (from Buy) with a revised target price of Rs1,964 (earlier: Rs1,665), implying a P/E multiple of 55x FY23E earnings. Key risks: 1) Sharp decline in PVC prices and 2) lower than expected pick-up in adhesive business.
Promoter/FII Holdings
Promoters held 55.7 per cent stake in the company as of March 31, 2021, while FIIs held 20.9 per cent, DIIs 7.6 per cent and public and others 15.8 per cent.
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