Shares of Astral Ltd. fell over 6% after the company announced a major restructuring of the firm led by the demerger of its chemicals business into a separately listed entity, Astral Chemie, which will be listed independently on both the National Stock Exchange (NSE) and the (BSE). The existing Astral will consist of its Plumbing & Pipe Business while Astral Chemie will have the Chemicals, Paints & Coating Business.
The stock opened in red at 4.70% and tumbled further.
One of the primary reasons for the demerger is the growing diversification of Astral's chemicals segment. The reorganisation will consolidate the existing paints and coatings. The business will be consolidated under a single, dedicated corporate platform managed by a focused leadership team with deep sector-specific expertise. This allows both businesses, including plumbing and chemicals to operate independently, with greater flexibility in deciding capital expenditure, growth investments, and expansion strategies.
Brokerage firm Investec has maintained its 'buy' rating on Astral Ltd. with a target price of Rs 1,710, expressing confidence in the company's long-term growth prospects following the recent demerger approval. The brokerage views the proposed restructuring as a potential value-unlocking trigger, framing it under the theme of "1+1 > 2", where the separation of businesses could drive sharper strategic focus and improved capital allocation.
Astral Ltd. Share Price Today
Astral Ltd. Share Price Today
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The scrip fell as low as 6.85% to trade at Rs 1392.70 apiece on Monday at 9:40 a.m. This compares to a 0.07% rise in the NSE Nifty 50 Index.
It has fallen 7.15% in the last 12 months and risen 0.41% year-to-date. Total traded volume so far in the day stood at 0.68 times its 30-day average. The relative strength index was at 37.18.
Out of 31 analysts tracking the company, 20 maintain a 'buy' rating, seven maintain a "hold", and four maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 1739.62 implies an upside of 24.2%
ALSO READ: Why Astral Is Splitting Its Business; What It Means For Shareholders
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