We had recently mentioned about our trip to Gujarat and company visits there. Here is the detailed update on Astral Polytechnik.
We had first mentioned about this company in March, 2011. Since then the stock has done very well, rising from Rs 120 to 300 and we feel that it still has a good potential over a longer term. Here is a summary of the past track record of the company:
The company has had a fantastic growth – it has grown its turnover from hardly 13 Cr in 2003 to 578 Cr in 2012. We feel that the conversion from GI Pipes to CPVC is still catching up and hence the potential is still big enough and with the development and introduction of new products, company can continue with 25-30% growth rates for next few years. The stock may look fairly priced based on PE ratio but if one removes the forex losses (which are one time in nature), the stock is still reasonably priced, looking at the long term growth potential. Company is also focusing on creating a national brand.
Here are few excerpts from the management meet: Continue reading Astral Poly: Management meet
The results season is finally over and it has been a mixed bag. There haven’t been much instances of major outperformances but overall good topline growth is being witnessed while margins are under pressure. It’s a good time to buy into selected good companies as margins would come back over the long run.
Results & updates on some of our favorite stock ideas:
1. Astral Poly – The stock was recommended here and we had provided an update about the meeting with the management.
The company has posted stellar growth yet again. For this year their turnover has grown 42% from 291 Crores last year to 411 Crores this year. The margins were under pressure and Net Profit growth was 18%. As per notes to accounts, the company has expanded the capacity by 56% from last year. As per analyst meet held recently, during the current year the company will expand the capacity by another 45%. It remains one of the best stock idea with strong growth visibility @ 25-30% p.a. for next 2-3 years.
Continue reading Company Results Update…
We had recently posted about Astral Polytechnik Ltd. (APL). We had discussed about the shift taking place in the Indian plumbing market from GI Pipes to CPVC and Astral’s leadership position in the same. The feedback and further research on this stock has been remarkable.
Our friend – Donald Francis, made a company visit and had a Management Meet to get a better understanding. Few highlights:
We see us growing at 30-35% CAGR for the next few years. If we execute well, a Rs. 1000 Cr turnover is achievable within the next 3 years.
We are looking to expand to 70,000 MT by this year end.
The availability of the CPVC compound (other than Lubrizol) is a key constraint.
Please check out the complete report (requires free login) to get a in-depth understanding of the company and the potential ahead.
Key Takeaways from his meeting:
- The opportunity for the CPVC players is huge as the acceptance and usage of CPVC is increasing fast in the plumbing industry.
Continue reading Astral Polytechnik–Management Meet