Anil Singhvi shares his pick of the day, target hit

Zee Business Managing Editor Anil Singhvi shared Astral Ltd (ASTRAL) as his pick of the day on Tuesday, after the manufacturer of plumbing products and drainage systems staged a strong quarterly performance.

Astral Ltd shares — traded on stock exchanges BSE and NSE with the symbol ASTRAL — met the market wizard’s targets of Rs 1630 and Rs 1,640 apiece at the opening tick itself. Singhvi had advised a stop loss for the futures at Rs 1,584 apiece — about three per cent below his targets. 

Astral Ltd shares surged, trading in high volumes. The stock gained by as much as Rs 144.9 or 9.1 per cent to Rs 1,739.6 apiece on BSE.

At 11:30 am, Astral shares held on to much of their intraday gains, trading eight per cent higher on the day at Rs 1,722.6 apiece on BSE. As many as 1.1 lakh Astral shares changed hands on the bourse for the day so far as against a daily average of 25,000 in the past two weeks, according to exchange data.

Why Anil Singhvi likes Astral Ltd shares

The market guru found the company’s performance for the quarter ended March 2023 to be strong on all parameters. 

“The company reported very strong numbers on every front, be it revenue, profit, operating profit and margin… The margin of 20.5 per cent is strong,” he said. 

Astral Ltd’s financial results for the March quarter beat analysts’ estimates on all grounds, with a 490-basis-point improvement in the margin — a key measure of profitability — on a year-on-year basis. 

According to Zee Business research, Astral Ltd’s was margin was estimated at 16.9 per cent. 

Astral Ltd Q4 results and dividend: A summary

Astral Ltd reported a 43.2 per cent jump in net profit to Rs 206.2 crore for the March quarter compared with the corresponding period a year ago. Its revenue grew 8.8 per cent to Rs 1,506.2 crore, according to a regulatory filing. 

Zee Business analysts had pegged Astra’s quarterly net profit at Rs 149.7 crore and revenue at Rs 1,468.6 crore. 

The company’s board recommended a final dividend of Rs 2.25 per share. 

“Both of the company’s pipes and adhesives businesses saw good growth… There was also strong demand in the southern market,” Singhvi said. 

Missed the bus on Astral Ltd shares? 

Anand Rathi Shares and Stock Brokers is also positive on Astral shares, with a ‘buy’ rating and a target of Rs 1,810 per share.

The brokerage values the stock at 62.5 times the company’s estimated earnings for the year ending March 2025.

Astral Ltd shares: Past performance

Astral shares have multiplied 3.5 times in value in the past three years, a period in which the Nifty 50 headline index has doubled.

As of May 15, the stock has gained around 30 per cent in the past one year while the index has risen 16 per cent.