It took less than three months for shares of Astral Ltd to move from their 52-week low to 52-week high this year. The stock, which hit a 52-week low of Rs 1,584 on June 20, 2022, touched a yearly high of Rs 2654 on September 9, 2022, translating into a return of 67.55% during the period.
Astral Limited is one of the leading players in the Indian Plastic Products Industry. The company has registered a strong profit growth of 27.5% Compound Annual Growth Rate (CAGR) in the last five years. It has reported a CAGR of 18% in terms of sales in the last five years.
However, the firm’s September quarter earnings were not so encouraging. The profit declined by 50.14% to Rs 70.40 crore in the September quarter, as against Rs 141 crore in the same quarter of the previous fiscal. Sales in the second quarter increased marginally to Rs 1171.60 crore as against Rs 1154 crore in the September 2021 quarter. The company’s consolidated Ebitda declined 28 per cent to Rs 157 crore as against Rs 219 crore in the corresponding quarter a year ago.
The stock has fallen in line with its competitors over the past year and into 2022. Astral Ltd stock has declined 17.48% in 2022 and fallen 14.135 in last one year. Shares of its main competitor Supreme Industries have gained 4.12% this year and 6.06% in one year.
Finolex Industries share has declined 21.37% this year and 22% in one year. Shares of another competitor, Prince Pipes, are down 21.47% this year and have fallen 31.41% in a year.
Let us take a look at what analysts have to say about the outlook and target price of the stock.
Manoj Dalmia, Founder & Director, Proficient Equities Pvt Ltd said, “Currently, Astral looks weak and may face some buying at current levels which could be in the form of a retracement. Investors can look for any closing below Rs 1862. Can expect further selling in the stock, on the downside Rs 1692 can be a long term target where one can accumulate. Heavy buying at current levels should be avoided.’
Ravi Singh, Vice President and Head of Research, Share India, said, “The tremendous jump in Astral’s stock is fully reflected in the firm’s financial performance. The firm’s profits have grown consistently during the last five years. Real estate booming, growing Gain in market share, market consolidation and higher PVC prices have contributed to the growth in EBITDA of the company. In terms of technical setup, Astral stock is witnessing selling pressure due to profit booking and will continue to trade with a target of Rs 1600 in the near term. The coverage may continue for some more period.
Abhijeet at Tips2trade said, “Astral stock price has declined since last few sessions due to margin erosion in Q2 FY2023 as well as negative sentiment seen due to higher valuations in mid cap and large cap stocks .Currently, the stock is oversold. Investors should buy only if a daily close above Rs 1931 for a target of Rs 2002-2046 in the near term. A daily close below Rs 1866 could see downside towards Rs 1817.
