The shares of Astral Ltd took less than three months to move from their 52 week low to 52 week high this year. The stock hit a 52 week low of Rs 1,584 on June 20, 2022, touching a yearly high of Rs 2654 on September 9, 2022, resulting in returns of 67.55% during the period. Astral Ltd is one of the leading players in the Indian plastics industry. The company has delivered a strong profit growth of 27.5% compounded annual growth rate CAGR over the last five years. In the last five years it has reported a CAGR of 18% in terms of sales.
The September quarter earnings of the firm were not so encouraging. The profit fell 50.14% to 70.40 crore in the September quarter against a loss of Rs 141 crore in the corresponding quarter of the previous fiscal year. In Q 2 sales rose marginally to Rs 1171.60 crore in September 2021 against Rs 1154 crore in September 2021. The consolidated EBIDTA of the company fell 28 per cent to Rs 157 crore as opposed to Rs 219 crore in the corresponding quarter a year ago.
The stock has fallen in line with its competitors in the last year and in 2022. Astral Ltd stock has lost 17.48% in the last year and dropped 14.135 in the last year. The shares of its main competitor Supreme Industries have risen 4.12% in the last year and gained 6.06% in a year. Finolex Industries stock fell 21.37% in the last year and 22% in a year. The shares of another competitor, Prince Pipes, have fallen 21.47% this year and declined 31.41% in a year.
In the current trading session, Astral Ltd shares rose by 1.40% to Rs 1900.40 against the previous close of Rs 1,874 on the BSE. The firm's market cap rose to 38,089. There were 79 crore.
The total changed hands of 0.12 lakh shares, amounting to a turnover of Rs 2.26 crore on the BSE. The stock has corrected over 28% in 2.5 months after a healthy rally from 52 week low to 52 week high.
Manoj Dalmia, founder and director of Proficient equities Private Limited said that Astral looks weak, and might face some buying at current levels, which can be in form of a retracement. The long-term target can be a long-term target that can be achieved by selling the stock for any closing below 1862, while the downside price of Rs 1692 can be a long-term target. The heavy buying should not be done at current levels. Ravi Singh, Share India's vice president and head of research, said the stellar rise in the stock of Astral is reflected by the financial performance of the firm. Profit of the firm has gone up over the last five years. A rise in real estate, rising market share, market consolidation and higher PVC prices has contributed to an increase in the company's EBITDA. The stock of Astral is witnessing selling pressure on account of profit booking and coverings may continue for some more time for the target of 1600 levels in near future. Abhijeet at Tips 2 Trade said that the subdued Q 2 FY 23 results with a fall in margins, as well as a negative sentiment seen in mid cap and large cap stocks due to lofty valuations has resulted in Astral stock price falling since the past few sessions. The stock is currently oversold. For a target of Rs 2002 -- 2046 in the near term, investors should buy only if daily close is above Rs 1931. A daily close below 1866 could lead to a fall till 1817, according to a daily close.