PVC Pipe

After gaining 40% already in FY24, the stock is trading at a PE of over 100x

Margins to expand, given demand recovery in key segments and falling input costs

After a sustained run, the benchmark Nifty is likely to move sideways and action could shift to the broader market

The company underperformed peers on the volume front in Q2, though margin impact was lower given value-added mix

It underperformed peers on the volume front in Q2, though margin impact was lower given value-added mix

Adani, TCG among key rivals in the sector

With the focus of both the Central as well as State Governments on water connectivity and distribution, the company expects demand for the PVCO pipes to be robust.

Weak Q3, lower PVC prices, demand uncertainty are key concerns

While the sector has grown at 10% over the last five years till FY21, it is expected to grow at a faster pace of 12% until FY25

In the past one month, the stock of Astral has rallied 27 per cent, as compared to a 5 per cent rise in the S&P BSE Sensex

Strong demand for plastic pipes, higher value-add mix drive earnings upgrade

Volume recovery and cost rationalisation may offset some of the pressure on margins

The project will be done in two phases, with the first phase of production expected to be operational in late-2022

Players like Finolex Industries, Astral Poly Technik and Supreme Industries set to harvest rich dividend