Astral Poly Technik Ltd.

Background:

• Astral Polytechnik Ltd. (APL) was established in the year 1996 and subsequently became a Public Ltd. company in the year 2006.
• APL is a manufacturer and provider of CPVC piping and plumbing systems in India since 1999. APL acquired licensee of Noveon, USA to manufacture and market CPVC piping and plumbing system in India. Company also entered into a techno-financial joint venture with Specialty Process LLC of USA, which provides APL the required technical expertise for manufacturing CPVC pipes and fittings for home and industrial application.
• APL is equipped with state of art production facilities at Ahmedabad and Himachal Pradesh to manufacture plumbing systems from ½” to 6” with all kinds of necessary fittings.
• APL had introduced a new product range in lead free PVC pressure pipes and fittings with a concept of providing a one-stop source for all the plastic piping systems. Company also began trading in products such as CPVC and PVC fittings, flanges and valves.
• Company has received an ISO 9001:2000 certificate in respect of manufacture and supply of CPVC and PVC pipes and fittings for plumbing systems and industrial piping system. APL’s raw material for manufacturing CPVC products is certified by National Sanitary Foundation (NSF).

Objects of the issue are:

• To part finance the expansion project of existing line of business.
• To part finance incremental working capital requirements for existing and upcoming line of activity.

Valuation:

• Total income of the company has been growing at a CAGR of 60.36% from Rs. 8.12 crores in FY 02 to Rs. 53.72 crores in FY 06. PAT of the company has been growing at a CAGR of 51.12% from Rs. 1.13 crores in FY 03 to Rs. 3.9 crores in FY 06. While for the month ended 30 th September 2006 APL reported a profit Rs 5.87 crores.
• Company’s net worth as on December 31, 2006 stood at Rs. 25.5 crores. As on December 31, 2006 Book value per share is Rs. 32.44 per equity share.
• Post issue annualized EPS on the basis of December earnings is Rs. 6.96. Shares are being offered at a price of Rs.115. At P/E multiple of 16.51.