Stock Picks: Astral Poly Technik Ltd

Astral Poly Technik Ltd (APTL) is engaged in manufacturing CPVC (Chlorinated polyvinyl chloride) and PVC pipes/plumping systems for residential and industrial applications. APTL was established in 1999 to manufacture plumbing and drainage systems in India. It has 3 manufacturing plants at Santej, Dholka and Hosur.

Key Facts:
– Organized players accounting for 65% of the piping market. Astral is the second largest organized player
– Astral earns 41% of its revenue from CPVC pipes, 33% from PVC pipes and 26% from Adhesives
– Astral has a total pipe manufacturing capacity of 127,762 tonnes (capacity utilisation is 68%)
– Astral is setting up a new pipe manufacturing plant in Ghiloth, Rajasthan
– Astral acquired two adhesive and sealants manufacturing companies UK-based Seal It Services and Resinova Chemie
– Salman Khan has been the brand ambassador for Astral

Clients:
– Top industrial clients include Reliance Industries, L&T, Adani, Grasim, NTPC, JSW Steel, Essar Steel and Cadila
– Top corporate clients include TCS, Wipro, Indian Oil and Sundaram Finance
– Key clients in the real estate space include Lodha, Hiranandani, Sobha, Tata Housing, Ajmera, and Kalpataru
– Key clients in the Hotels space include Marriott, Hyatt, Taj, ITC, Trident, Holiday Inn, Le Roral Meridien, The Imperial, and The Courtyard

Management:
– Sandeep Engineer is the Managing Director of Astral. Under his leadership, Astral’s market cap grew from $10 million to $1 billion in the last 7 years
– Sandeep has been praised by distributors for his humility and humbleness
– Sandeep has received EY Entrepreneur of The Year award
– Sandeep has received ET Inspiring Business Leader award
– India’s most trusted pipe brand by TRA
– Expanded its distribution network and product range
– Able and good management

Investors:
– Promoters hold 59% of the company
– Mutual Funds hold close to 5.6% of the company
– Setadview Capital holds 3.9% of the company
– ABG capital holds 2.8% of the company
– Treeline Asia Fund holds 3% of the company

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s