Reduce Astral, target price Rs 1752: Yes Securities

Yes Securities has reduce call on Astral with a target price of Rs 1752. The current market price of Astral is Rs 1913.35.

Astral, incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 38717.34 Crore) operating in Plastics sector.

Astral key Products/Revenue Segments include Plastic Products and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1265.80 Crore, up 6.81 % from last quarter Total Income of Rs 1185.10 Crore and up 14.54 % from last year same quarter Total Income of Rs 1105.10 Crore. Company has reported net profit after tax of Rs 95.20 Crore in latest quarter.

The company’s top management includes Mr.Sandeep P Engineer, Mrs.Jagruti S Engineer, Mr.Girish B Joshi, Mrs.Kaushal D Nakrani, Mr.Viral M Jhaveri, Mr.C K Gopal. Company has S R B C & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 20 Crore shares outstanding.

Investment Rationale
With company’s foray into Paints, Sanitary ware & Faucets, the brokerage believes ASTRAL is on path to become one of India’s leading building materials companies. Though the brokerage remains positive on growth, Astral continues to trade at expensive valuation of 60x on FY24E EPS of Rs 31.9. Hence, it has assigned a REDUCE rating on the stock.

Promoter/FII Holdings
Promoters held 55.85 per cent stake in the company as of 31-Dec-2022, while FIIs owned 14.88 per cent, DIIs 15.1 per cent.