Shares of Astral Limited have doubled investors' money in the last 12 months. The stock rose 6 per cent to hit an intraday high of Rs 2,350 on the Bombay Stock Exchange (BSE).
It has surged from the Rs 967 mark to touch Rs 2,350. The large-cap stock has gained 143 per cent in the last one year and has risen 71 per cent since the beginning of this year.
With a market capitalisation of more than Rs 46,000 crore, the shares stand higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The manufacturer of CPCV pipes and fittings reported a 63 per cent year-on-year (YoY) rise in its net profit at Rs 143.30 crore for the quarter ended September 2021. Profit in the year-ago period stood at Rs 87.9 crore.
Total Income grew 54 per cent to Rs 1,162 crore in the September quarter compared to Rs 755 crore in the year-ago period.
Astral Limited informed that the demand scenario of pipes as well as adhesives is good and the company is expecting encouraging sales numbers in both segments in coming times.
Brokerage house Edelweiss said the company reported healthy set of Q2FY22 numbers in both pipes and adhesives, despite the raw materials inflations. It has maintained a 'Buy' rating on the stock with a target price of Rs 2,500 per share.
"We remain positive on ASTRAL due to its strong brand, new product launches (recent entry into faucets & sanitaryware, tanks, infra pipe, DWV piping system etc to continuously increase addressable market size), strong cash flow and a debt-free business and robust growth in the core plastic piping business, which is backed by strong demand in the urban real estate market and GOI's Jal Jeevan Mission programme," Edelweiss said in a note.
According to Systematix Institutional Equities, the revival in the housing sector, consolidation in the pipe industry and shift from PVC to CPVC due to narrowing price gaps augur well for Astral.
"We find Astral appealing for its consistent focus on growth and profitability, supported by innovative product launches, vigorous brand-building and successful product diversification. After establishing a leading position in plumbing pipes, it has been expanding relentlessly in adhesives. Its foray into adjacent segments (organically or inorganically) to lever its brand and distribution network has worked well for fast-paced growth and capturing growth opportunities," it added.
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