Astral Poly Technik - On strong footing - ICICI Securities
Posted On: 2021-02-03 23:41:29 (Time Zone: Arizona, USA)
Astral Poly Technik s (ASTRA) Q3FY21 numbers were a beat to our expectations driven by: a) Impressive double-digit revenue growth in both its businesses: pipe (33.3% YoY) and adhesive (41% YoY); b) EBIDTA margin traction in both the businesses (22.9%/16.4% in pipe/adhesive respectively) led by inventory gains in PVC segment, higher value-added sales, and superior product mix. Jan 21 consolidated revenues too reported 35% YoY growth. ASTRA maintains its robust growth outlook in its plastic piping business (including recently launched tanks and DWC pipes) and adhesive segment, going forward, driven by market share gains, new product launches, and distribution expansion. Downgrade to HOLD.
Main Equity indices came off the day s low and traded near the flat line in mid morning trade. The Nifty scaled the 14,800 mark. Auto stocks extended gains in anticipation of the proposed voluntary vehicle scrappage policy.
At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 40.93 points or 0.08% at 50,214.66. The Nifty 50 index was up 9.3 points or 0.06% at 14,799.95.
The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index was up 1.31% while the S&P BSE Small-Cap index gained 1.37%.
The market breadth was strong. On the BSE, 1745 shares rose and 921 shares fell. A total of 125 shares were unchanged.
Nifty Sensex may continue to trend up – Wednesday closing report
Moneylife Digital Team
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We had mentioned in Tuesday’s closing report that Nifty, Sensex may log in more gains. On Wednesday, the major indices continued to rise and ended with decent gains. On the NSE, there were 1,165 advances, 703 declines and 354 unchanged.
The trends of the major indices in the course of Wednesday’s trading are given in the table below:
Bharti Airtel consolidated net profit grew to Rs 853.6 crore in Q3FY21 against loss of Rs 1,035 crore in the corresponding quarter in the previous year. Consolidated revenue rose to Rs 26,517,8 crore from Rs 21,947 crore YoY.
Astral Poly Technik rose 2.48% to Rs 1,690 after the company said its board will consider issue of bonus shares at its meeting scheduled on February 3.
In the past three months, the stock has added 47.14% while the benchmark S&P BSE Sensex has gained 17.61% during the same period.
In a BSE filing made after market hours yesterday, the company said that the board of directors of the company will be held on Wednesday, 3 February 2021 to consider proposal for issue of bonus equity shares.
On the same day, the board will also consider the unaudited financial results for the quarter and nine months ended 31 December 2020.
The equity barometers further extended losses and hit fresh intraday low in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, tumbled 576.13 points or 1.22% at 46,833.80. The Nifty 50 index skid 166 points or 1.19% at 13,801.50.
The January 2021 F&O contracts will expire today, 28 January 2021. Global cues were weak as a rise in the volatility index (VIX) worried investors. Rising coronavirus cases and uneven distribution of vaccine rollouts also triggered selling pressure.
Fed Chairman Jerome Powell said that the U.S. economy was a long way from full recovery and still short of policy makers inflation and job goals. The central banker made it clear that the U.S. central bank was nowhere near exiting massive support for the economy during the ongoing coronavirus pandemic, as officials left their benchmark interest rate unchanged near zero.