Trending today: Shares of this pipes manufacturing company surge after acquisition of an additional 15% stake in subsidiary

The acquisition of this stake was done at a consideration of GBP 52,50,000 (approximately Rs 48 crore).

Astral Ltd, an S&P BSE 200 company, is buzzing on the burses today. As of 2.41 pm, the shares of the company are trading at Rs 2508.85 apiece, higher by 3.99% over the previous close. Meanwhile, the frontline index S&P BSE Sensex is down by 0.22%.

The surge in the share price of Astral Ltd comes after the company made an important announcement today. As per the exchange filing, the company has acquired an additional 15% stake in Seal IT Services Limited, UK. With this, the company now owns a 95% stake in the latter.

The acquisition of this stake was done at a consideration of GBP 52,50,000 (approximately Rs 48 crore). To give a brief background, the acquired company operates in the adhesives business.

Astral Ltd is a leading plastic pipes manufacturing company. The company was established in 1996 and was initially engaged in manufacturing plumbing and drainage systems in the country. Over the years, the company’s product portfolio has expanded. Today, the company manufactures pipes, water tanks, adhesives and sealants. Its products are used in the areas of plumbing, fittings, agriculture, urban infrastructure, etc.

In the recent quarter Q1FY23, on a consolidated basis, the company’s net revenue increased by 73.07% YoY to Rs 1,212.90 crore. The PBIDT (ex OI) grew 32.6% YoY to Rs 171.70 crore. Similarly, the bottom line increased by 24.90% YoY to Rs 93.80 crore.

The company is currently trading at a TTM PE of 97.44x against the industry PE of 21.76x. In FY22, the company delivered an ROE & ROCE of 23% and 30%, respectively.

Today, the scrip opened at Rs 2446.85 and has touched a high and low of Rs 2537.85 and Rs 2413.95, respectively. So far, 65,326 shares have been traded on the bourses. The stock has a 52-week high & low of Rs 2654 and Rs 1584, respectively on BSE.