Astral Q4 Review - Embedded Optionality Offers Valuation Comfort: ICICI Securities
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Besides the inherent growth prospects of both Astral Ltd.'s pipes and adhesive divisions (capable of delivering 15-20% revenue compound annual growth rate over next five years), the business model has embedded optionality which provides healthy comfort to otherwise seeming expensive valuations.
Huge cash on books (to exceed Rs 10 billion by FY23) which would likely open up substantial organic/inorganic growth opportunities.
Low market share in pipes (7.5%) and adhesives (3%) to drive substantial scalability over the next five years.
Recently launched double wall corrugated pipes and tanks to drive sound revenue visibility.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.