With a market capitalization of ₹ 41,101 crores, Astral Limited is a large-cap company, primarily engaged in the plumbing and drainage systems business in India. The movement of its share price over the years is an example of how staying invested in a company for the long term can give multibagger returns to its investors.
Astral Ltd’s shares were trading at ₹ 2017.00 apiece on Friday’s early trades. In the past five years, the company’s shares have given multibagger returns of 357.27%. Therefore, if an investor would have invested ₹ 1 lakh in the shares of the company five years ago, the value of their holdings would have been ₹ 4.57 lakhs today!
Similarly, its shares gave multibagger returns of 31814 % in the last fifteen years as its share price increased from ₹ 6.32 apiece to the current levels. If an investor would have invested ₹ 1 lakh in the company’s shares fifteen years ago, the value of their holdings would have been ₹ 3.19 crores today!
Axis Securities has a buy call on the shares with a target price of ₹ 2500 apiece. This translates to an upside of 21.72% as compared to the current share price. The time period given by the analyst is 18 to 24 months.
The company’s shares are currently trading at a price-to-equity ratio of 81.41, which is significantly higher than the industry PE of 31.93. This could mean that the stock is overvalued. On the bright side, it has a return on equity of 22.86% and an ideal debt-to-equity ratio of 0.04.
Written by Simran Bafna
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
