astral pipes It hasn’t done well in the past one year, but for long term investors, this stock has given stupendous returns to its shareholders despite the steep fall in the past one year. In last 10 years, Astral share price has increased from Rs 25.75 to Rs 1632.60 per level. NSEregistered a growth of over 6,000 per cent during this period.
In the last one month, the price of each Astral share has declined from Rs 1,632.60 to Rs 1,612. In other words, Astral has seen the stock market fall five percent during that period. In YTD time, Astral share price has fallen from Rs.2332 to Rs.1632 level, registering a decline of almost 30 per cent in this period. In the last 6 months, this stock has fallen from Rs 2265 to Rs 1632 level, a decline of about 28 percent in this period. However, in the last one year, the Astral share price has fallen from around Rs 1950 to Rs 1632 level, a decline of about 16 per cent in this period.
Currently, the company is in focus as it has subscribed alternatively convertible debentures worth Rs 194 crore allotted by Gem Paints, and has appointed majority directors on the boards of Gem Paints and Isha Paints. Accordingly, Gem Paints and Isha Paints have become a subsidiary and step-down subsidiary of the company respectively.
In the last 5 years, Astral share price has increased from around Rs 415 to Rs 1632, a growth of about 290 per cent or a CAGR of about 31.50 per cent for its loyal shareholders, who have gained in the stock during this period. stay invested. Similarly, in the last 10 years, this multibagger stock has risen from around Rs 25.75 to Rs 1632.60 on NSE, registering a growth of nearly 6,000 per cent or 51.43 per cent CAGR (Compound Average Growth Rate) or annualized return over the period. Is. Its shareholders who remained invested in Astral shares for the last 10 years. So, if an investor had invested Rs 1 lakh in this multibagger stock 10 years ago and had invested in this stock during this period, his Rs 1 lakh would have become more than Rs 63 lakh today.
Why are analysts bullish?
Despite declining profits in the fourth quarter, analysts remain bullish on Astral’s prospects for a number of reasons. Firstly, the demand for pipes is expected to increase due to spurt in construction activities and government’s emphasis on infrastructure. Second, EBITDA is expected to improve in 2023-24, supported by an improved product mix. Third, the company has also acquired 51 per cent stake in Gem Paints, which has a strong presence in South India. This will help grow Astral’s paint business and enable it to enter additional geographies. Fourth, the company has incurred capital expenditure of Rs 1,000 crore in the last five years, mostly to increase manufacturing capacity. Its stock is trading at a premium valuation in terms of 12-month forward PE ratio of 57.1 times as compared to BSE Industrial Index and BSE Sensex at 22.8 and 19.9 times respectively.
Should you invest?
Axis Securities has included Astral Ltd in its ‘Buy’ basket in its June Top Stock Picks. The report said, “Astral has registered a growth of ~10 percent in the piping segment which is the highest among peers in the last 4 years, indicating that Astral is gaining market share. Despite the rise in Astral receipts Maintaining an EBITDA margin of ~17.8 per cent as commodity inflation continues to dent the profitability of the industry. Further, Astral’s entry into valves, resins, sanitary ware and tanks will drive revenue growth in the coming years, according to the report. has been mentioned.
On the financials side, Astral reported Q4FY22 consolidated revenue growth of 23.3 per cent YoY, largely due to plastics (+22.3 per cent YoY) and adhesives (+27 per cent YoY). In the Plastics segment, the company registered a growth of 11 per cent YoY and 9.5 per cent respectively in Q4FY22 and FY22 volumes. Volume growth remained above industry growth, while other peers posted flat to negative growth, indicating that Astral gained market share in FY22.
The brokerage house has given ‘BUY’ tag to Multibagger stock with a target price of Rs 1,900.
The views and investment suggestions of experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decision.
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