📈Technical Analysis: Bullish Reversal in Sight
Astral Limited has exhibited a robust uptrend over the past decade, with its stock price ascending from ₹4 – ₹5 to an all-time high of ₹2,454 in July 2024. However, following this peak, the stock underwent a significant correction, declining by approximately 50% to reach the ₹1,200 level.
This correction can be attributed to weaker performances in Q1, Q2, and Q3 of FY24. Notably, the ₹1,150–₹1,250 range has historically acted as a strong demand zone, providing support on multiple occasions since 2021. The recent positive Q4 FY24 results, announced on May 21, have catalyzed a rebound, with the stock currently trading around ₹1,450.
Key Technical Levels:
Support Zones: ₹1,150 – ₹1,250
Resistance Levels: ₹1,600 (Target 1), ₹1,800 (Target 2), ₹2,000 (Target 3)
All-Time High: ₹2,454
A sustained move above ₹2,000 could pave the way for a retest of the all-time high. Conversely, a breach below the ₹1,150 support zone may signal further downside.
💰Q4 FY24 Key Financial Highlights:
The Q4 results indicate a strong sequential recovery, with notable improvements across all key financial metrics.
🧾Fundamental Insights:
Segmental Growth: The piping business experienced a 24% growth, while the bathware segment achieved sales of ₹24.2 Cr in Q4 FY24. The company anticipates significant growth in the bathware division in FY25, having surpassed 1,000 showrooms or dealers .
Operational Expansion: New plants in Guwahati and Cuttack are fully operational, with additional facilities under construction in Hyderabad and Kanpur, expected to contribute to revenue in the upcoming fiscal year .
Capacity Utilization: The company's capacity utilization improved to 68% last year, with expectations of further enhancement as new products are rolled out from the new plants .
Dividend Declaration: The board has proposed a final dividend of ₹2.25 per equity share for FY24, subject to approval at the upcoming AGM .
✅Conclusion:
Astral Limited's recent technical breakout from the strong demand zone, coupled with robust Q4 FY24 financial performance and strategic operational expansions, positions the company favorably for potential upside. Investors should monitor key resistance levels and support zones to make informed decisions.
Disclaimer: lnkd.in/gJJDnvn2
Astral Limited has exhibited a robust uptrend over the past decade, with its stock price ascending from ₹4 – ₹5 to an all-time high of ₹2,454 in July 2024. However, following this peak, the stock underwent a significant correction, declining by approximately 50% to reach the ₹1,200 level.
This correction can be attributed to weaker performances in Q1, Q2, and Q3 of FY24. Notably, the ₹1,150–₹1,250 range has historically acted as a strong demand zone, providing support on multiple occasions since 2021. The recent positive Q4 FY24 results, announced on May 21, have catalyzed a rebound, with the stock currently trading around ₹1,450.
Key Technical Levels:
Support Zones: ₹1,150 – ₹1,250
Resistance Levels: ₹1,600 (Target 1), ₹1,800 (Target 2), ₹2,000 (Target 3)
All-Time High: ₹2,454
A sustained move above ₹2,000 could pave the way for a retest of the all-time high. Conversely, a breach below the ₹1,150 support zone may signal further downside.
💰Q4 FY24 Key Financial Highlights:
- Total Income: ₹1,681 Cr (vs ₹1,397 Cr in Q3 FY24)
- Total Expenses: ₹1,380 Cr (vs ₹1,178 Cr in Q3 FY24)
- Total Operating Profits: ₹301 Cr (vs ₹219 Cr in Q3 FY24)
- Profit Before Tax: ₹236 Cr (vs ₹154 Cr in Q3 FY24)
- Profit After Tax: ₹178 Cr (vs ₹113 Cr in Q3 FY24)
- Diluted Normalized EPS: ₹6.67 (vs ₹4.25 in Q3 FY24)
The Q4 results indicate a strong sequential recovery, with notable improvements across all key financial metrics.
🧾Fundamental Insights:
Segmental Growth: The piping business experienced a 24% growth, while the bathware segment achieved sales of ₹24.2 Cr in Q4 FY24. The company anticipates significant growth in the bathware division in FY25, having surpassed 1,000 showrooms or dealers .
Operational Expansion: New plants in Guwahati and Cuttack are fully operational, with additional facilities under construction in Hyderabad and Kanpur, expected to contribute to revenue in the upcoming fiscal year .
Capacity Utilization: The company's capacity utilization improved to 68% last year, with expectations of further enhancement as new products are rolled out from the new plants .
Dividend Declaration: The board has proposed a final dividend of ₹2.25 per equity share for FY24, subject to approval at the upcoming AGM .
✅Conclusion:
Astral Limited's recent technical breakout from the strong demand zone, coupled with robust Q4 FY24 financial performance and strategic operational expansions, positions the company favorably for potential upside. Investors should monitor key resistance levels and support zones to make informed decisions.
Disclaimer: lnkd.in/gJJDnvn2
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.