Branch2 Intelligence
Astral's demerger plan triggers sharp market selloff, brokerages trim targets
Key takeaway
Astral's demerger of its chemicals business triggered an 11% stock selloff as brokerages cut targets.
- Step 11st-order: Astral announces demerger of chemicals business into separate listed entity.
- Step 22nd-order: Market revalues Astral as sum-of-parts, removing diversification premium and highlighting chemical entity's lower margins and cyclicality.
- Step 33rd-order: Brokerages cut target prices, triggering selloff and reducing Astral's market cap by ~₹3,500 crore.
Source: Economic Times (Markets)
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