Buy Astral Poly Technik; target of Rs 2100: Sharekhan

Sharekhan's research report on Astral Poly Technik

\In Q3, the company reported better-than-expected performance along with sharp expansion in operating margins. Demand momentum accelerated in Q3 for both pipes and adhesives. Long term outlook for pipes and adhesives remains healthy. A sharp increase in PVC price a concern. Expansion plans on track to maintain growth. Board recommends bonus issue of 1:3.

Outlook

We downgrade Astral Poly Technik (Astral) to hold with a revised price target of Rs. 2,100 owing to unfavourable risk-reward ratio awaiting a better entry point.