Astral Ltd. share price target

Astral Poly Technik Ltd. (ASTRAL) reported sales of INR 775cr grew by 21.3% YoY over Q4FY18 (3% below our estimates).

Astral Poly Technik (Astral) is the domestic market leader in the niche CPVC pipes & fittings market.

Astral's consolidated revenue growth of ~24% YoY in Q3FY19 was led by consolidation of Rex Polyextrusion (Rex) in the topline. Piping and adhesive segment recorded revenue growth of ~14% and ~15%, respectively. Piping segment volume growth at ~4% YoY was impacted by liquidity issue and systemic corrections (like channel financing and installation of billing software). On the adhesive segment, Resinova (domestic business) recorded slow revenue growth of 7% YoY on account of a high base...

Astral is engaged in the business of manufacturing and marketing of PVC and CPVC plumbing systems for residential as well as industrial applications. It has also ventured into adhesives category in 2014 by acquiring Resinova and Seal It (UK and USA). Astral is expanding capacities in both pipes & fittings and adhesives which will help the company in capturing incremental demand and also aid in reducing logistics cost. Implementation of GST will provide an edge to organised players (market share of 60%/70% in pipes/adhesives) like Astral due to its strong distribution network and widespread geographical presence leading to market share gains....

ICICI Securities Ltd | Retail Equity Research Astral Poly came out with a strong set of numbers in H1FY19 wherein revenue, PAT increased 20%, 30% YoY, respectively, led by impressive growth in the adhesive segment (revenue up 25% YoY). The piping segment revenue growth at ~12% YoY was lower-than-expected mainly due to trucker's strike, floods in Kerala and fall in PVC prices, which led to sales deferral by dealers. Despite this, EBITDA margins increased ~200 bps YoY to 15.6% due to price hike (mainly in the adhesive segment),...

Astral Poly Technik (Astral) came out with a strong Q2FY19 in line with our estimates. Revenue grew by 21.1% YoY to Rs6.3 bn, EBITDA was up 23.7% YoY to Rs944 mn and adjusted PAT was up 24.8% YoY to Rs523 mn. Plastic segment witnessed a volume growth of 4.5% YoY to 27,250mt with EBITDA growth of 27.4%. Further, Adhesive business revenue increased by 25% YoY to Rs1.5 bn while EBITDA rose by 28% YoY to Rs238 mn. We keep our estimates unchanged and expect revenue/EBITDA/PAT to clock a CAGR of 19%/20%/26% during FY18-FY20E. We maintain our TP to Rs1,037 (45x...

Astral's consolidated revenue growth of ~21% YoY in Q2FY19 was led by strong revenue growth in the adhesive segment by 24% YoY along with consolidation of revenue of Rex Polyextrusion (Rex) from the current quarter. However, standalone piping segment recorded moderate growth of ~10% YoY led by lower-than-expected volume growth of ~6% YoY. Anticipation of a price cut, strike of transporters coupled with floods in Kerala had impacted overall volume growth, especially in the PVC piping segment. The company has taken a price...

Astral Poly Technik's (Astral) Q1FY19 result came largely in line with estimates where EBITDA/adj. PAT were 6.3%/3.4% above our estimates respectively while revenue was 2.4% below expectation. Revenue grew by 17.1% YoY to Rs4.7bn, EBITDA was up 60.7% YoY to Rs779 m and adjusted PAT was up 76.8% YoY to Rs454 mn. Plastic segment saw a volume growth of 15% YoY to 22,476mt whereas Adhesive business witnessed revenue growth of 25% YoY to Rs1.4bn. Both Plastics and Adhesive business witnessed a margin expansion of 412bps and 483bps YoY respectively. We keep our estimates unchanged and expect revenue/EBITDA/PAT to clock a CAGR of 19%/20%/24% during...

Topline growth of ~18% YoY was largely supported by strong revenue growth in the adhesive segment by 23% YoY (net of excise, GST) during Q1FY19. The strong segment performance was led by launch of new products and addition of dealer's network during the period. Domestic business (Resinova) recorded revenue growth of 23% YoY while SEAL IT recorded decent growth of ~29% YoY. Piping segment revenue growth is not comparable on a YoY basis due to base period revenue being inclusive of excise and exclusive...

ICICI Securities Ltd | Retail Equity Research Astral poly Technik Ltd (APTL) has acquired 100% stake for | 147.5 crore (51% will be paid in Cash and 49% will be by exchange of APTL shares) in Rex Polyextrusion Pvt Ltd (Rex), an India based corrugated and other plastic pipe manufacture. Incorporated in 2006, Rex products range includes DWC Pipe (double wall corrugated), PVC suction and discharge Hoses, Single wall corrugated pipes suitable for underground sewerage drainage applications. The company has manufacturing plant located in...