TREND REVERSAL IN ASTRALLong Term Trendline Broken
We can expect W pattern above 1980
RR Favorable at CMP
Astrallong
NSE:ASTRAL Ltd's -Abki bar breakout ke liye Tayar 🌋???NSE:ASTRAL
Astral Poly Technik Ltd: Pioneering the Indian Plumbing and Adhesive Industry
Established in 1996, Astral Poly Technik Ltd set out with a vision to manufacture pro-India plumbing and drainage systems. Over the years, it has expanded into the adhesive business, marking its territory across multiple domains.
Historical Milestones
Astral has emerged as a frontrunner in the CPVC pipes and fittings sector in India. It pioneered the introduction of lead-free PVC pipes in 2004 and brought lead-free uPVC column pipes to the market in 2012. The company's strategic move into the adhesives space occurred in 2014, with the acquisitions of Seal IT Services Limited (UK) and Resinova Chemie Limited (RCL).
Diverse Product Range
Astral's portfolio extends beyond pipes to include water tanks, faucets, sanitary ware, and paints. It boasts approximately 37 variants in its pipe and tank segment and about 23 in adhesives.
Revenue Breakdown
A) Piping Division: Contributing 73% to the company’s revenues, Astral offers an array of products for various systems, including fire sprinklers and industrial applications. The acquisition of Rex Polyextrusion added specialties like corrugated pipes and telecom line protection systems to its arsenal.
B) Adhesives Division: Accounting for 27% of revenues, this division offers products ranging from epoxy adhesives and sealants to construction chemicals and tapes.
Inorganic Growth and International Presence
Astral has spread its wings internationally, with manufacturing in 3 countries and exports to over 25. It generates around 8% of its revenue from international sales.
Manufacturing Excellence
The company's manufacturing footprint includes eight piping and water tank facilities in India and five adhesives plants globally. To optimize logistics costs, Astral strategically positions its facilities to serve different regions within India and has recently expanded to Bhubaneswar, Odisha.
Future Expansion
Astral plans to augment the capacity of its Bhubaneswar plant and is establishing new facilities in Guwahati, Hyderabad, and Kanpur. These are set to become operational between FY24 and FY25, with a planned annual capex of ₹300-350 crore funded through internal accruals.
Extensive Distribution Network
The company's robust distribution network features over 2,750 distributors and more than 1,93,000 dealers. With a strong foothold in West and South India, the piping business is expected to grow in the North and East with new facilities.
Strategic Raw Material Sourcing
The company predominantly imports CPVC resin from Sekisui Chemical and relies on domestic giants like Reliance Industries for PVC resins.
New Ventures
In the pursuit of diversification, Astral ventured into faucets and sanitary ware in October 2021, eyeing a market potential of ₹15,000 Cr. This division is led by Mr. Atul Sanghvi, the former CEO of CERA, who has since resigned effective from 30.10.23. In the paints category, Astral acquired a majority stake in Gem Paints Pvt Ltd, with further investments to consolidate its position.
Brand Visibility
Astral leverages brand endorsement through Bollywood icons and sports associations. It has partnered with celebrities like Ranveer Singh and Allu Arjun to enhance its market visibility, allocating 2-3% of its net sales for promotional endeavors.
Subsidiaries and Growth
The company oversees 9 subsidiaries as of FY23, with a footprint extending beyond Indian borders.
As Astral Poly Technik Ltd continues to build on its strengths and explore new markets, it stands as a testament to the potential of Indian manufacturing and the importance of strategic growth.
Source: Screener.in
Disc: Invested for long time , adding in anticipation of breakout this time - Abki bar breakout ke liye tayar
ASTRAL LTD TRENDLINE BREAKOUT AND RETESTWe Can see trendline breakout and retest
In Daily TF we can see Consolidation breakdown from 1st Sep till 20th which wasn't sustained and stock trading is same range...
Breakout on upside will Trigger SL above the box and Sharp Upside momentum Expected.
15 Min candle Closure above 1920 can be considered for going Long
Astral on the fire watch it and trade itHi every one Astral is on the fires if breakout honga to maldar honge watchlist me dal do
Chart follow karo monthly chart hai
Astral trying to break the shackles Astral limited started as a plumbing and drainage solutions providing company The company is today a big name in manufacturing pipes, drainage and water storage tanks used in real estate projects. Post the success company has forayed into diverse product range from ancillary (clamps & hangers) to industrial pipes.
CMP of the stock is 1483.50. Negatives of the company are High valuation (P.E. = 101.2), Declining quarterly net profit and FIIs decreasing stake. Positives of the company are no debt, zero promoter pledge, improving annual net profit & MFS are increasing stake.
Entry in the stock can be taken after closing above 1501. Target will be 1154 and 1657. Long term target will be 1700+. Stop loss in the stock should be kept at a closing below 1383.
