Accumulate Astral Poly Tec;target of Rs 476: EIS

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26 Aug, 2025 12:21

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EIS's research report on Astral Poly TecAstral Ploy's standalone top-line growth was 5.4% to Rs 3196.5 Mn. Growth has been slowing down for the past several quarters due to overall subdued macros. The slower sales growth was despite a growth of ~10% in sales volume due to a decline in blended realization which is understandable considering steep fall in crude prices on yoy basis. PVC pipe witnessed a price cut of around 8% yoy whereas CPVC product prices were down by around 2% yoy due to fall in RM prices. Sales performance was in-line with our estimates.Astral had been witnessing a subdued performance during last five quarters due to steep fall in polymer prices and slowing economy. With polymer prices stabilize, Astral has started taking small price hikes but subdued economy situation continues to hurt growth. On account of capacity addition and new product launches, the company is well poised to regain its growth momentum going ahead. Continuous introduction of new products along with capacity expansion make company’s future prospects look quite bright. Besides fundamentally strong pipe business, its newly acquired subsidiaries in adhesive & sealant businesses promise a great future on account of several synergies with Astral. Incorporating subdued 9MFY16 performance, we have cut down our future projections, however our SOTP based target price remains at same level of Rs 476, as we roll over our valuations to FY18E earnings. After some recent corrections, the stock now offers 30% upside from current level. Thus, we upgrade our rating from Accumulate to Buy.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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