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Astral Poly Technik Q2FY18: An investment idea for medium to long-term

Firstcall India Equity | 11 Jan, 2018  | Follow Author | Add to my Favourites 
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- Astral Poly Technik Limited manufactures, markets, and trades in pipes, fittings and adhesive products in India and internationally.

- Revenue for the Sep quarter of FY 2017-18, stood at Rs. 5198.00 mn as against Rs. 4891.00 mn, when compared with the prior year period, up by 6.28%.

- For Q2 FY18, EBITDA of the company has increased to Rs. 754.40 mn from Rs. 600.50 mn in Q2 FY17. During Q2 FY18, PBT of the company grew 33.11% to Rs. 568.90 mn from Rs. 427.40 mn in Q2 FY17. During Q2 FY17, the company’s net profit was Rs. 391.80 mn against Rs. 301.10 mn in corresponding quarter of the previous year, up by 30.12%.

- EPS of the company stood at Rs. 3.27 a share in Q2 FY18 as against Rs. 2.51 per share over previous year period.

- During Q2 FY18, revenues from plastic segment increased by 8% to Rs. 3849.40 mn as compared to Rs. 3577.40 mn in Q2 FY17.

- Under adhesives segment, sales of the company were Rs. 1348.60 mn in Q2 FY18 as against Rs. 1313.60 mn in corresponding quarter of the previous year.

- The company has approved to increase its stake in its JV Astral Pipes Ltd, Kenya from 37.50% to 50%. This JV has recorded sales revenues of Rs. 153.70 mn forI six months ended on June 3ot Sep 2017.

- Six months ended on 3oth Sep 2017, net sales of the company was Rs. 9599.80 mn as against Rs. 9606.30 mn in corresponding period of the previous year.

- In first half of FY 2017-18, PAT of the company grew 12.87% to Rs. 640.20 mn from Rs. 567.20 mn in corresponding period of the previous year.

- Construction activity at Ghiloth plant (Rajasthan) and Hosur plant (Tamilnadu) are going on with full swing. The company is targeting to commission production from Q4 FY 2017-18 and Q1 FY2018-19 respectively.

- Net sales and PAT of the company are expected to grow at a CAGR of 17% and 28% over 2016 to 2019E respectively.

Outlook and Valuation


At the current market price of Rs. 847.10, the stock P/E ratio is at 58.93 x F Y18E and 48.31 X F Y19E respectively.

Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 14.37 and Rs. 17.53 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 28% over 2016 to 2019E respectively.

On the basis of EV/EBITDA, the stock trades at 32.64 x for F Y18E and 27.81 x for F Y19E.

Price to Book Value of the stock is expected to be at 10.03 x and 8.31 X for F Y18E and F Y19E respectively.

Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ,, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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