Review

ASTEC LIFESCIENCES 

Ticker : 533138 
FV : Rs 10  
52-Week H/L : Rs 1,365.00/306.00 

We had previously recommended Astec Lifesciences in volume no. 37, issue no. 14, dated January 25, 2021, when the scrip was trading at Rs 1,263.50. It was recommended based on the strong growth in the company’s product line as well as the overall sectoral growth. On the consolidated financial front, for Q3FY21, its net sales fell by 7.07 per cent to Rs 116.01 crore compared to Rs 124.83 crore posted for Q3FY20. The company posted a contraction in PBDT by 16.79 per cent to be Rs 17.79 crore for Q3FY21 as against Rs 21.38 crore reported for Q3FY20. Net profit decreased by 42.01 per cent to Rs 7.05 crore in Q3FY21 from Rs 12.15 crore gained in Q3FY20. In Q3FY21, the company reported weaker financial performance due to the impact of the deferment of a few orders and a decline in prices of one of its key products. Going forward, the opportunities for Indian agrochemical players remain high, both in the domestic as well as the international market, and hence, we recommend HOLD.