Equity Analysis /
India

IN : Astec Lifesciences Ltd - Medium-term headwinds, Hold

    Shaily Ruparelia
    Satish Kumar
    CGS-CIMB
    19 April 2021
    Published by

    We forecast revenue growth at 15% CAGR and PAT at 13.9% CAGR over FY21F-24F for Astec LifeSciences.The key chemical segment SBI-triazole is facing demand headwinds, but we believe expansion into herbicides provides a growth opportunity.We value the stock at 25x FY23F EPS, in line with the mean P/E of the last eight years. We initiate coverage on the stock with Hold and TP of Rs1,073.