Accumulate Astral Poly Technik; target of Rs 1159: Dolat Capital

Dolat Capital's research report on Astral Poly Technik

Astral Poly Technik (APTL) results were broadly in line with estimates. Strong traction was witnessed in adhesive segment as well as piping segment. Margins reported in both the segments were the highest in the last 3 years. We expect the volume growth traction to continue driven mainly by the distribution expansion and brand thrust. This growth is further supported by shift from unorganized to organized segment. With high growth trajectory and expansion in return ratios, valuations will remain expansive.

Outlook

We rollover our valuations to FY20E. Reiterate our Accumulate recommendation with a target price of ` 1,159.