Near-term growth on market share gains to remain robust for Astral Poly

Valuations, PVC price moderation may, however, keep the stock under pressure

After gaining 42 per cent between January and mid-March, the Astral Poly Technik stock has lost steam over the last month, shedding some of the gains. Wh­ile the outlook for the plastic pipe major remains strong, expected correction in polyvinyl chloride (PVC) prices and high valuations are weighing on the stock.

The prices of PVC have almost doubled from the lows of last year because of global supply shortages and are currently hovering at Rs 130 per kg. This has led to higher realisation and inventory gains for companies in the sector. Analysts, however, believe that the sharp rise in PVC