Astral Poly Technik Ltd (Astral) reported a 33.4% YoY decline in revenue for Q1FY21 to Rs4,039 mn. The degrowth was on account of decline in both Plastics & Adhesives segments, which fell as it was hit hard by the lock-down. EBITDA for Q1FY21 stood at Rs543 mn a decline of 41.0% YoY, with margins at 13.4% lower by 174 bps YoY, due to lower Gross Margins. PAT however fell by 57.7% YoY to Rs199 mn due to higher depreciation and loss in JV. Going forward, we expect growth for the company in both the segments in coming quarters as demand has started recovering.
OutlookWe retain our HOLD rating on the stock of the company with revised higher target price of Rs 1008 (implying P/E of 45x FY22E).
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