Astral Poly surges over 6%; CLSA initiates coverage with 'Buy' rating

NEW DELHI: Share of Astral Poly Technik advanced as much as 6.35 per cent in early trade on Wednesday after global brokerage house CLSA initiated coverage on the stock with ‘Buy’ rating and set a target price of Rs 545.

The scrip was trading 3.58 per cent up at Rs 457.45 around 9.25 am (IST). Shares of the company opened at Rs 456.30 and touched a high and low of Rs 469.70 and Rs 451.30, respectively, in trade so far. Benchmark BSE Sensex was trading almost flat at 29,002.23.

CLSA expects Astral Poly Technik to report 27 per cent EPS CAGR in FY16-19CL with a sharp improvement in asset turnover.

“The company is rapidly expanding into attractive adhesives or construction chemicals business,” said CLSA.

For the quarter ended December 31, 2016, the company reported a net profit of Rs 32.68 crore, up 56.36 per cent, against Rs 20.90 crore in the corresponding quarter last year. Gross sales of the company climbed 12.96 per cent year-on-year to Rs 507.09 crore for the quarter under review.

Astral Poly Technik 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.