Hold Astral Poly Technik; target of Rs 832: East India Securities
East India Securities recommended hold rating on Astral Poly Technik with a target price of Rs 832 in its research report dated May 28, 2020.
East India Securities’ research report on Astral Poly Technik
Astral Poly Technik Ltd (Astral) reported a 18.8% YoY revenue degrowth for Q4FY20 to Rs.6,289 mn. The degrowth was on account of both the Plastics and Adhesives segments, which got hit hard during the lock-down in crucial month of March. Plastics segment grew well for the first two months of the Q4FY20. The EBITDA for Q4FY20 stood at Rs.1,126 mn a degrowth of 5.4% YoY with margin of 17.9%, higher by 254 bps YoY, due to higher Gross Margins. The PAT however fell by 17.4% YoY to Rs.516 mn due to higher depreciation and higher finance cost.
Going forward, though Astral too has to face impact of extended lockdown, however we believe they will come back strongly when covid impact subsides. We retain our HOLD rating on the stock of the company with reduced target price to Rs 832 (40x FY22E EPS).
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First Published on May 28, 2020 04:37 pm