Rs 233 to Rs 2,231: This stock turned into a multibagger in five years

Stock of Astral Ltd has rallied 852% in the last five years. The share, which closed at Rs 233.37 on December 9, 2016 rose to a high of Rs 2,258 on the BSE today. An amount of Rs 1 lakh invested in the shares of Astral Ltd five years ago would have turned into Rs 9.52 lakh today. In comparison, Sensex has risen 120 per cent during the period.

The large cap stock closed on a flat note today. It ended at Rs 2,222.50 against the previous close of Rs 2,230.20 on BSE. Astral Ltd share stands higher than 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.Total 9,655 shares of the firm engaged in production of plastics products changed hands amounting to a turnover of Rs 2.13 crore on BSE.

Market cap of the firm rose to Rs 44,285 crore on BSE. The share has gained 65.80 per cent since the beginning of this year and rallied 109.02% in the last one year. The stock hit a 52-week high of Rs 2,431 on October 5, 2021 and a 52-week low of Rs 1,045 on December 9, 2020.

The firm has outperformed its peers in terms of share market returns in the last five years. While share of another plastic industry player Finolex Industries rose 143% in five years, Jain Irrigation stock has lost 52% during the period.

Also read: Rs 0.35 to Rs 150: This penny stock turned into a multibagger in 2.5 years.

 Share of Supreme Industries managed to surge 167% and plastics products manufacturer Polyplex Corp’s stock logged strong 454% returns in last five years.

Five promoters held 55.73 per cent stake in the firm and public shareholders owned 44.27 per cent at the end of September quarter.1,71,561 public shareholders owned 8.89 crore shares of the firm. Of these, 1,63,696 shareholders held 8.02% stake with capital up to Rs 2 lakh.

Only nine shareholders with 2.49% stake held capital above Rs 2 lakh at the end of September quarter. 263 foreign portfolio investors (FPIs) held 21.32% stake in Q2 of the current fiscal. 24 mutual funds held 7.25% stake or 1.45 crore shares in the company at the end of September quarter.

Also read: Rs 62 to Rs 716: This stock turned into a multibagger in one year

Life Insurance Corporation (LIC) owned 1% or 20.18 lakh shares of the firm in Q2. Other than LIC, 11 insurance firms held 2.67% or 53.58 lakh shares of the firm at the end of last quarter.

The stellar rise in the stock of Astral Ltd fully reflects the financial performance of the firm. In the September quarter, the firm reported a 62.86% rise in net profit.

Also read: Rs 22 to Rs 499: This stock turned into a multibagger in one year

Profit after tax (PAT) climbed to Rs 141.20 crore in Q2 against Rs 86.70 crore in the corresponding quarter of previous fiscal.

Sales rose 54.58% to Rs 1154 crore in the last quarter against Rs 747 crore in the September quarter of 2020. Operating profit zoomed 47% to Rs 211.50 crore for the quarter ended September against Rs 143.60 crore profit in the corresponding quarter of the previous fiscal.

On a quarter-on-quarter basis, the firm reported a 91.07% rise in net profit to 141.20 crore from Rs 73.90 crore in the June 2021 quarter. Sales climbed 64% to Rs 1,154 crore in Q2 compared with Rs 700 crore sales for the quarter ended June this year.

On an annual basis, net profit rose 63.13% to Rs 404.40 crore for the fiscal ended March 2021 against Rs 247.90 crore profit for the fiscal ended 2020. Sales climbed 23.21% to Rs 3,176.30 crore in the last fiscal against Rs 2,577 crore profit for the fiscal ended March 2020.

Profit of the firm has constantly risen during the last five years. In March 2016 fiscal, consolidated net profit stood at Rs 100.95 crore which has grown steadily to Rs 404.40 crore profit in the last fiscal. Sales has grown to Rs 3,176.30 crore in the last fiscal against Rs 1,874 crore sales in March 2016 fiscal.

Earnings per share have zoomed to Rs 20.12 in last fiscal against Rs 20.12 for fiscal ended March 2016. Return on capital employed stood at 27.87% in the last fiscal against ROCE of 8.23% for the fiscal ended March 2016.

Reliance Securities assigned a ‘Buy’ rating to the Astral stock post Q2 earnings this fiscal. Price target has been increased from Rs 2,153 to Rs 2,840, a 24% upside.

“We believe the faster-than-expected recovery witnessed by the company in 1HFY22, aided by an overall revival in the economy, will pave the way for a strong operating performance in the next 2-3 years. Factoring the uptick in real estate, rising market share, market consolidation and higher PVC prices, we increase our EBITDA estimates by 22.6%/22.7%/26.3% for FY22E/FY23E/FY24E, respectively. Keeping the target multiple unchanged at 75x FY24E, we maintain our BUY rating on the stock, with a revised 1-year target price of Rs 2,840 (earlier Rs2,153),” the brokerage said.

Astral Ltd is engaged in the production of plastic products. The company and its subsidiaries are engaged in the business of manufacturing and trading of pipes, fittings and adhesive solutions.

Its product range includes pipe category for plumbing, industrial, drainage, fire protection, agriculture, electrical conduit and ancillary, and adhesive category for construction, maintenance, wood care and automotive. The company has its manufacturing facilities in India and abroad, and sells across the globe.

Also read: Rs 21 to Rs 343: This stock turned into a multibagger in three months

Also read: Rs 350 to Rs 1233: This multibagger stock zoomed over 250% in one year. Do you own it?

Leave a Reply

Your email address will not be published. Required fields are marked *