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
Real Estate/Construction sector is a huge area in India and the potential going forward is enormous. Plumbing and clean water transportation is a very important area and crucial part of a construction project. Repairing of plumbing work is a very troublesome and costly affair and hence one won’t compromise on this front.
The plumbing industry in India is undergoing a smart change. Earlier, GI Pipes used to dominate the market but now PVC and CPVC pipes are fast replacing the GI Pipes. CPVC resin is most hygienic compound for water transportation and is resistant to corrosion. Hence as awareness and quality consciousness is increasing, more and more people are adopting CPVC pipes for plumbing needs.
Lubrizol (earlier B F Goodrich a Fortune 500 Company, USA) has been a leader in development of CPVC and they hold the patent for the same. Astral Poly is the first licensee of Lubrizol of USA and have a techno-financial joint venture with Specialty Process LLC of USA. Continue reading Astral Poly Technik Ltd – BSE:532830