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Astral Poly Technik share turned Rs 1 lakh into Rs 13 crore in 10 years, do you own it?

Rs 1,00,000 invested in Astral Poly Technik stock on July 10, 2009 would have grown to Rs 13.27 crore on July 11, 2019 .

Astral Poly Technik share turned Rs 1 lakh into Rs 13 crore in 10 years, do you own it?

Astral Poly Technik share price has zoomed from Rs 0.99 on July 10, 2009 to Rs 1,314 on BSE.

The Astral Poly Technik share has delivered strong returns for investors during the last ten years. Rs 1,00,000 invested in the stock on July 10, 2009 would have grown to Rs 13.27 crore on July 11, 2019. Astral Poly Technik share price has zoomed from Rs 0.99 on July 10, 2009 to Rs 1,314 on BSE. Astral Poly Technik stock has delivered 1,32,627% returns to its investors in the last 10 years.

Seven of 17 brokerages rate the stock "buy" or 'outperform', five "hold", three "underperform" and two "sell", according to analysts' recommendations tracked by Reuters.

Astral Poly Technik share price has risen 21.93% during the last one year and gained 15.03% since the beginning of this year. In comparison, the benchmark Sensex rose 7.58% since the beginning of this year and gained 6.17% during the last one year. The midcap stock closed at 1,314 level on Thursday. It was trading 0.87% lower at 1,302 level on BSE today.

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Financial performance

Astral Poly Technik reported a fall of 4.36% in net profit to Rs 62.47 crore in the quarter ended March 2019 compared with Rs 65.32 crore during the quarter ended March 2018.

Sales rose 21.27% to Rs 774.70 crore in the quarter ended March 2019 compared with Rs 638.82 crore during the previous quarter ended March 2018.

The firm has constantly improved its financial performance during the last 10 years.

For fiscal ended March 2019, the firm logged Rs 2,507 crore in net sales compared to Rs 291.17 crore in sales for fiscal ended March 2010.

 

The debt to equity ratio for this plastic products manufacturer during year ended March 2019 stood at 0.13.

For fiscal ended March 2019, the firm logged Rs 200.91 crore in net profit compared to Rs 27.71 crore for fiscal ended March 2010. Price to book value ratio for year ended March 2019 stood at 10.86 compared to 1.86 for the fiscal ended March 2009.

Asset turnover ratio for the year ended March 2019 improved to 119.43% compared to 110.54% for the fiscal ended March 2009. Return on capital employed for the year ended March 2019 stood at 21.09% compared to 17.74% for the fiscal ended March 2009.

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What brokerages said

Dolat Capital in a report on May 24 this year gave a buy call to Astral stock with a target price of Rs 1,447.  The current market price at the time of issuing this report was Rs 1,200.  

The brokerage said "Astra has  been  a  multi-year  compounding  story  and  we  expect  the  trend  to continue. The additions in the product portfolio in both  segments -pipe  and adhesive-will   augment   growth, with an expanding   margin   profile.   Astra's management  strategy is to  pursue  profitable  volumes,  which  is  likely  to ensure margin  protection  and  keep the balance sheet strong.

Despite very  high valuations, we believe that Astra stock performance will continue to be driven by profitability growth. We rollover our valuations to FY21E earnings, and reiterate Buy with a target price of Rs 1,447."

After the firm announced its Q4 earnings in last fiscal, IDBI Capital upgraded the stock from Sell to Hold.

IDBI Capital on May 23, 2019 said, "Astral Poly Technik's (Astral) Q4FY19 result was largely in-line to our forecast. Revenue grew by 19% YoY to Rs 770 crore. While EBITDA remained flattish on a YoY basis at Rs 120 crore owing  to  higher  other  expenses, Adjusted   profit after tax declined  13%  YoY  to  Rs 61.1 crore. Plastic segment (Inclusive of Rex) witnessed volume growth of 23% YoY to 38,877mt whereas EBITDA just grew by 9.7% YoY to Rs 977 mn owing to higher expenses.

Further, Adhesive business revenue increased by 19% YoY  to Rs 180 crore while EBITDA declined by 22% YoY to   Rs 25 crore due   to   higher branding   expenses.  We largely   keep   our   estimates unchanged  and introduce  FY21  financials  and  expect  its revenue/EBITDA/PAT  to  see  a compunded annual growth rate of 19%/21%/29% during FY19-21. We raise our target price to Rs 1,255 (PER of 45 times FY21 Estimated) from Rs 945 as we roll over our valuation to FY21E. We upgrade the stock to HOLD from SELL."

ICICI Direct Research in a report on February 13, 2019 said, "Near-term earnings to be impacted by corrective actions taken in Q3FY19; medium-long term earnings visibility remains strong: Factoring in the Q3FY19 numbers and corrective actions, we revise our revenue and profit after tax (PAT) estimates downward by 6.4%/9.4% and 10.7%/12.9% respectively for FY19/FY20. We expect the company to report revenue and PAT compounded annual growth rates of 21% and 30% respectively, over FY18-FY21. Rolling forward to FY21E, we maintain REDUCE on ASTRA with a revised target price of Rs 1,020 (vs Rs 916 earlier), valuing it at 32 times FY21 estimated earnings."

Astral Poly Technik is engaged in the production of plastic products. The company and its subsidiaries are engaged in the business of manufacturing and trading

of pipes, fittings and adhesive solutions.

Its product range includes pipe category for plumbing, industrial, drainage, fire protection, agriculture, electrical conduit and ancillary, and adhesive category for construction, maintenance, wood care and automotive. The company has its manufacturing facilities in India and abroad, and sells across the globe.

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