3 ASTRAL share price target reports by brokerages below. See what is analyst's view on ASTRAL share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Driven by its strong pipes performance Astral’s Q2 FY20 revenue/ EBITDA/PAT grew 8%/26%/83% y/y. Weakness in adhesives was expected due to correction measures taken in Resinova. Ahead, we expect a healthy growth pace in pipes and adhesives as structural changes at Rex and Resinova have been completed. We slightly change our earnings estimates and expect a 29% CAGR over FY19-21 (higher than peers) vs. 20% over FY14-19. We retain our Buy, with a higher target of Rs 1,301, earlier Rs 1,148 (adjusted for the 1:4 bonus issue). Strong earnings growth is essential to hold to the high valuation multiple.
ASTRA has been a multi-year compounding story and we expect the trend to continue. Addition in product portfolio in both segments – pipe and adhesive will augment growth with expanding margin profile. ASTRA management strategy to pursue profitable volumes will ensure margin protection and keep balance sheet healthy. Despite the very high valuations, we believe that ASTRA stock performance will continue to be driven by profitability growth. Reiterate Buy with a target price of ` 1,487.
We believe that ASTRA is in the investment phase and will reap long-term benefits of this strategy in the next five years. We believe that revenue growth and margin profile should rise. The company’s growth trajectory remains high and return ratios are also expanding, therefore valuation should remain expensive. We reiterate Accumulate, with a target price of` 1,458 (49x FY21E).
We model revenue, earning CAGR of 21%, 30% in FY19-21E led by volume growth and recovery in EBITDA margin, respectively. Though we believe in strong fundamental of APTL (strong bottomline growth, strong return ratios) coupled with intact demand outlook (led by government push on the housing, infra sectors), current price discounts all near term positives. We maintain our stance on the stock with HOLD rating.
ASTRA has been a multi-year compounding story and we expect the trend to continue. Addition in product portfolio in both segments – pipe and adhesive will augment growth with expanding margin profile. ASTRA management strategy to pursue profitable volumes will ensure margin protection and keep balance sheet healthy. Despite the very high valuations, we believe that ASTRA stock performance will continue to be driven by profitability growth. We rollover valuations to FY21E earnings. Reiterate Buy with a target price of Rs 1,378.
We reckon that a revival of the plastic piping industry is on the cards with government push on the housing sector, implementation of GST and continued replacement demand from tier II, tier III cities. Additionally, backward integration coupled with stabilisation of new capacity would help EBITDA margins to remain elevated. We believe Rex would add value to ATPL in the long run by contributing to the bottomline from day one. We believe that at 51x FY20E and 39x FY21E earnings, the stock captures near term positives. Hence, we maintain our target price and change our recommendation from BUY to HOLD.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
DISCLAIMER: Information is provided "as is" and solely for informational purposes, not for trading purposes or advice, and may be delayed. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and FrontPage will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein.