Buy Astral, target price Rs 2225: Axis Securities

Axis Securities has buy call on Astral with a target price of Rs 2225. The current market price of Astral Ltd. is Rs 2060.55. Time period given by analyst is one year when Astral Ltd. price can reach defined target.

Astral Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 41438.78 Crore) operating in Plastics sector.

Astral Ltd. key Products/Revenue Segments include Plastic Products and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 1224.30 Crore, down -12.99 % from last quarter Total Income of Rs 1407.00 Crore and up 73.81 % from last year same quarter Total Income of Rs 704.40 Crore. Company reported net profit after tax of Rs 96.10 Crore in latest quarter.

Investment Rationale
Astral could deliver consolidated margins in the range of 17%-18% in the upcoming quarters. Furthermore, Astral’s foray into Valves, Resins, Sanitary ware, and Tanks would add revenue growth in the upcoming years.

Promoter/FII Holdings
Promoters held 55.73 per cent stake in the company as of 30-Jun-2022, while FIIs owned 16.07 per cent, DIIs 13.59 per cent.