BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Astral Ltd.’s Q2 FY23 result was above our estimates on net sales front, while margins disappointed. Sharp increase in raw material prices led to inventory destocking by the dealers resulting weak performance of plastic division.
Net sales was down by 2.4% YoY to Rs 12.7 billion, while Ebitda declined by 31.9% YoY to Rs 1.4 billion. Astral reported net profit of Rs 0.7 billion, a sharp fall of 50.1% over Q2 FY22.
The management remained confident of high teens growth in core businesses as well as new businesses to contribute meaningfully in near term.
However, we are skeptical about margins and believe that incremental growth may come at a cost, denting operating margins. We have cut our earnings estimated for FY23E/FY24E.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.