Astec Life science buzzing on bourses

Astec Life sciences has been outperforming markets and its peers by a good amount of margin.

Astec manufactures a wide range of Agrochemical active ingredients and pharmaceutical intermediates. Astec's considerable experience in the development and production of intermediates and active ingredients makes it an ideal partner. Astec has forged enduring relationships with large and small companies all over the world. Astec has an unshakeable reputation for providing quality products in manufacturing plants that meet global standards.

Astec Life science has rich experience of over two decades in the chemical industry. Company operated in three states that is Karnataka, Gujarat, and Maharashtra. They have already rolled out in Punjab, Haryana and Madhya Pradesh. Expansion in on cards for Astec in the industry expected to grow at 15 per cent per anum at least.

Company does business through contract manufacturing which is success model and also company's plants are complied with EHS standard which makes its plant with world class facility.  Company has executed big contracts in last one year where they have tied up with Sumitomo which is a Japanese player. Sumitomo is a $20 Billion company.

Company products:- 

Company is operating in segment called Triazole fungicide segment. Tebuconazole or Propiconazole, Difenoconazole, Hexaconazole they are all Triazole fungicide segment of the industry in the fungicidal segment which is specialized in niche area where company operates where they have a core competence because of backward integrations, lateral integrations. Hence due to backward integration company is able to save a lot in terms of expenses. Backward integration strategy is working for the company.

In one year alone the stock has delivered 375 percent returns. YTD performance has been at 93 percent (rounded off). The BSE Healthcare index has delivered 6 percent returns on YTD basis. Astec has been a clear outperformer in the healthcare sector leaving behind the peer companies such as Shilpa Medicare and Suven Life sciences by a good margin. An Astec Life science is in uptrend and analysts are bullish on the counter.

The company has clocked an EPS growth of about 42 percent in one year showing above average growth improvement. The EPS growth for past three years stands at 17.58 percent. The stock with a face value of Rs. 10 is trading at a P/E ratio of 45.06. The Price to Book ratio is about 2.79 and the dividend yield for the stock is 0.52 percent.

SBI Mutual fund and LIC Mutual Funds have invested in this counter with a long term view.