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Please refer to important disclosures at the end of this report
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Astral Poly Technik Limited(APTL) is engaged in the production of plastic
products. The company has remained consistent in its operations with 5 yrs
CAGR in sales of 18.9% and CAGR in profits of 20.1%. In 1QFY19 the
company reported 27.2% growth in revenue, which was supported by sales
growth in pipe segment on account of consolidation of REX Polyextrusion.
The company recently commissioned operations at its Ghiloth, Rajasthan
plant and attained 60% capacity utilisation. As on date, the company’s total
manufacturing capacity stands at 45000 Mtpa. The company is also
outlining a structural change which would be partly passed on to distributors,
thus increasing sales as well as margins. Its business unit, Resinova is
undergoing parallel corrections & structural change from 3-tier distribution to
2-tier distribution. The company expects good growth in H2FY20
On the balance sheet front, the company has steadily reduced its
dependence on debt. Debt equity ratio has come down to 0.2x in FY19 from
0.4x in FY15. The working capital days has also improved from 74 days in
FY18 to 66 days in FY19 due to decline in receivable days from 55 days in
FY18 to 47 days in FY19. Astral delivers 17.6% RoE and also pays dividend
every year. Hence BUY.
BUY
CMP `1,230
0.9
Reuters Code
ASPT.BO
ASTRA IN
1
BSE Sensex
39,090
Nifty
11,603
Face Value (`)
Plastic Products
Market Cap (` cr)
18,524
52 Week High / Low
1268/653
Avg. Daily Volume
3,07,643
Jaikishan Parmar
022 – 3935 7600 Ext: 6810
jaikishan.parmar@angelbroking.com
Astral Poly Technik Ltd
Others |Plastic Products
Sept 23, 2019
2
Astral Poly Technik Ltd|Plastic Products
2
Research Team Tel: 022 - 39357600 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Astral
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)