The Astral Poly Technik share has delivered strong returns for investors during the last ten years. Rs 1,00,000 invested in the stock on July 10, 2009 would have grown to Rs 13.27 crore on July 11, 2019. Astral Poly Technik share price has zoomed from Rs 0.99 on July 10, 2009 to Rs 1,314 on BSE. Astral Poly Technik stock has delivered 1,32,627% returns to its investors in the last 10 years.
Seven of 17 brokerages rate the stock "buy" or 'outperform', five "hold", three "underperform" and two "sell", according to analysts' recommendations tracked by Reuters.
Astral Poly Technik share price has risen 21.93% during the last one year and gained 15.03% since the beginning of this year. In comparison, the benchmark Sensex rose 7.58% since the beginning of this year and gained 6.17% during the last one year. The midcap stock closed at 1,314 level on Thursday. It was trading 0.87% lower at 1,302 level on BSE today.
Astral Poly Technik reported a fall of 4.36% in net profit to Rs 62.47 crore in the quarter ended March 2019 compared with Rs 65.32 crore during the quarter ended March 2018.
Sales rose 21.27% to Rs 774.70 crore in the quarter ended March 2019 compared with Rs 638.82 crore during the previous quarter ended March 2018.
The firm has constantly improved its financial performance during the last 10 years.
For fiscal ended March 2019, the firm logged Rs 2,507 crore in net sales compared to Rs 291.17 crore in sales for fiscal ended March 2010.
The debt to equity ratio for this plastic products manufacturer during year ended March 2019 stood at 0.13.
For fiscal ended March 2019, the firm logged Rs 200.91 crore in net profit compared to Rs 27.71 crore for fiscal ended March 2010. Price to book value ratio for year ended March 2019 stood at 10.86 compared to 1.86 for the fiscal ended March 2009.
Asset turnover ratio for the year ended March 2019 improved to 119.43% compared to 110.54% for the fiscal ended March 2009. Return on capital employed for the year ended March 2019 stood at 21.09% compared to 17.74% for the fiscal ended March 2009.
What brokerages said
Dolat Capital in a report on May 24 this year gave a buy call to Astral stock with a target price of Rs 1,447. The current market price at the time of issuing this report was Rs 1,200.
The brokerage said "Astra has been a multi-year compounding story and we expect the trend to continue. The additions in the product portfolio in both segments -pipe and adhesive-will augment growth, with an expanding margin profile. Astra's management strategy is to pursue profitable volumes, which is likely to ensure margin protection and keep the balance sheet strong.
Despite very high valuations, we believe that Astra stock performance will continue to be driven by profitability growth. We rollover our valuations to FY21E earnings, and reiterate Buy with a target price of Rs 1,447."
After the firm announced its Q4 earnings in last fiscal, IDBI Capital upgraded the stock from Sell to Hold.
IDBI Capital on May 23, 2019 said, "Astral Poly Technik's (Astral) Q4FY19 result was largely in-line to our forecast. Revenue grew by 19% YoY to Rs 770 crore. While EBITDA remained flattish on a YoY basis at Rs 120 crore owing to higher other expenses, Adjusted profit after tax declined 13% YoY to Rs 61.1 crore. Plastic segment (Inclusive of Rex) witnessed volume growth of 23% YoY to 38,877mt whereas EBITDA just grew by 9.7% YoY to Rs 977 mn owing to higher expenses.
Further, Adhesive business revenue increased by 19% YoY to Rs 180 crore while EBITDA declined by 22% YoY to Rs 25 crore due to higher branding expenses. We largely keep our estimates unchanged and introduce FY21 financials and expect its revenue/EBITDA/PAT to see a compunded annual growth rate of 19%/21%/29% during FY19-21. We raise our target price to Rs 1,255 (PER of 45 times FY21 Estimated) from Rs 945 as we roll over our valuation to FY21E. We upgrade the stock to HOLD from SELL."
ICICI Direct Research in a report on February 13, 2019 said, "Near-term earnings to be impacted by corrective actions taken in Q3FY19; medium-long term earnings visibility remains strong: Factoring in the Q3FY19 numbers and corrective actions, we revise our revenue and profit after tax (PAT) estimates downward by 6.4%/9.4% and 10.7%/12.9% respectively for FY19/FY20. We expect the company to report revenue and PAT compounded annual growth rates of 21% and 30% respectively, over FY18-FY21. Rolling forward to FY21E, we maintain REDUCE on ASTRA with a revised target price of Rs 1,020 (vs Rs 916 earlier), valuing it at 32 times FY21 estimated earnings."
Astral Poly Technik is engaged in the production of plastic products. The company and its subsidiaries are engaged in the business of manufacturing and trading
of pipes, fittings and adhesive solutions.
Its product range includes pipe category for plumbing, industrial, drainage, fire protection, agriculture, electrical conduit and ancillary, and adhesive category for construction, maintenance, wood care and automotive. The company has its manufacturing facilities in India and abroad, and sells across the globe.