Remain bullish on Astral Poly: P Phani Sekhar

In a chat with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking, shares his views on Astral Polu. Edited Excerpts:

ET Now: What is your call on Astral Poly?

P Phani Sekhar: Astral Poly are one of the earliest pioneers in the CPVC segment. They have the technological advantage. When PVC pipes were actually struggling to increase in market penetration, they had taken that risk of going for CPVC. They are major beneficiaries of any economic turnaround. Apart from industrials and especially the chemical segment which happens to be one of their big clients, they are also very well represented in the real estate segment across the country, especially the larger builders and developers.

The chemical segment has started doing well ahead of the recovery in industrials because of the China factor. Both the industrials and the real estate space improves, Astral Poly will do even better from here. See even from profitability or balance sheet point of view, there are no concerns there. As I said they are leaders in technology, good joint ventures,technology tie-ups and very good allocation of capital. So all in all even though the valuations are little stretched, it does make sense for longer-term investors to be in that stock.