Sell Astral, target price Rs 1657: Yes Securities

Yes Securities has sell call on Astral with a target price of Rs 1657. The current market price of Astral is Rs 1950.

Astral, incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 53031.98 Crore) operating in Plastics sector.

Astral key Products/Revenue Segments include Plastic Products and Other Operating Revenue for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 1295.20 Crore, down -14.38 % from last quarter Total Income of Rs 1512.80 Crore and up 5.79 % from last year same quarter Total Income of Rs 1224.30 Crore. Company has reported net profit after tax of Rs 119.30 Crore in latest quarter.

Investment Rationale
The brokerage expects Revenue/EBITDA/PAT growth of 19%/24%/27% respectively over FY23-FY25E. ASTRAL continues to trade at premium P/E(x) of 90x/71x on FY24E/FY25E EPS of Rs22/27.6. Hence, though it remains bullish on company’s growth, demanding valuations compels the brokerage to downgrade the stock to SELL from REDUCE.

Promoter/FII Holdings
Promoters held 55.85 per cent stake in the company as of 30-Jun-2023, while FIIs owned 15.65 per cent, DIIs 15.87 per cent.