Add Astral Poly Technik, target price Rs 2210: HDFC Securities

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Add Astral Poly Technik, target price Rs 2210:  HDFC Securities


HDFC Securities has add call on with a target price of Rs 2210. The current market price of Astral Poly Technik Ltd. is Rs 2070.95.

Astral Poly Technik Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 31026.69 Crore) operating in Plastics sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 903.60 Crore, up 20.16 % from last quarter Total Income of Rs 752.00 Crore and up 35.61 % from last year same quarter Total Income of Rs 666.30 Crore. Company reported net profit after tax of Rs 125.10 Crore in latest quarter.


Investment Rationale
ASTRA’s superior capital allocation has resulted in strong revenue and earnings growth, as well as high return ratios. While earnings growth outlook remains buoyant, ASTRA’s stepping up asset sweating led FCF/return ratio acceleration should further bolster its valuations. We initiate coverage on ASTRA with an ADD rating and a TP of INR 2,210/share (34x its consolidated Mar’23E EBITDA). Despite valuing it at a 15% premium to its 3-year mean multiple, the upside is limited, owing to sharp rise in its share price over the past six months.


Promoter/FII Holdings
Promoters held 55.74 per cent stake in the company as of Dec 31, 2020, while FIIs held 10.27 per cent, DIIs 17.2 and public and others 14.02 per cent.





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