Hold Astral, target price Rs 2400: Axis Securities

Axis Securities has hold call on Astral with a target price of Rs 2400. The current market price of Astral Ltd. is Rs 2100.3. Time period given by analyst is one year when Astral Ltd. price can reach defined target.

Astral Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 43481.14 Crore) operating in Plastics sector.

Astral Ltd. key Products/Revenue Segments include Plastic Products and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 1105.10 Crore, down -4.90 % from last quarter Total Income of Rs 1162.10 Crore and up 22.30 % from last year same quarter Total Income of Rs 903.60 Crore. Company reported net profit after tax of Rs 127.90 Crore in latest quarter.


Investment Rationale
Astral is gaining continuous market share due to superior products and strong brand recall. Furthermore, the company's foray into Tanks, Valve, Sanitary Ware, Faucet, and SWR piping systems will help Astral to double the revenue in FY24. Therefore the brokerage recommends a HOLD rating on the stock with the target price of Rs 2400/share.

Promoter/FII Holdings
Promoters held 55.73 per cent stake in the company as of 31-Dec-2021, while FIIs owned 19.87 per cent, DIIs 11.58 per cent.