Astral Poly Technik hit a new 52-week high today at Rs.1229 and the mood on the counter continues to remain pretty optimistic.
Pursuant to the order of the NCLT, the company is going ahead with the amalgamation of Rex Polyextrusion Private Limited with Astral Poly Technik. The company is banking a lot on Rex as its estimates are that Rex would soon be jumping to double digit growth and the growth will be enormous in the Rex product life.
In the earnings call, the company had said that Rex Rex did around Rs.43 crore top line and EBITDA rose from 2% to 5.2% (YoY). In Q4, it is expecting a double digit EBITDA from FY20 onwards, it estimates EBITDA of Rex to be at 13% to 15%.
The company is also streamlining its operations for improved efficiency, better inventory management and consolidation. Keeping this in mind, in January, it closed its Coimbatore and Bangalore depots, with Hosur becoming the hub for all dispatches to south.
At its Ahmedabad plant, it has almost finished the expansion at Santej, changed production systems wherein it has brought all the CPVC products to one plant, which till Q3 were manufactured both at Santej and Dholka plant. So Santej plant will be making all new products, technical products and all PVC and CPVC products, which are used for clean water application. It has also completed the trials for launching new system of valves both industrial and for plumbing and in Q1FY20 plans to launch valves which are used both for plumbing and industrial with the new technology, new designs and with technology from abroad.