Dolat Capital recommended Accumulate rating on Astral Poly Technik with a target price of Rs 1458 in its research report dated July 12, 2019.
Dolat Capital's research report on Astral Poly Technik
Supported by replacement and new demand from the real estate sector and the automobile industry, as well as hospitals, the industry is projected as per Astral’s annual report to rise at a CAGR of 14% between FY18 and FY22. In recent times, the piping industry witnessed a drastic shift of demand from metal to polymer-based pipes, especially CPVC. Such pipes are now largely used for plumbing and piping applications in the real estate sector and in firefighting operations. This trend is likely to continue.
The company’s growth trajectory remains high and return ratios are also expanding, therefore valuation should remain expensive. We reiterate Accumulate, with a target price of ` 1,458 (49x FY21E).
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