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 1Astral announces demerger of chemicals business, triggering 11% stock selloff.
- Step 2Brokerages trim target prices due to valuation uncertainty for the standalone chemical entity.
- Step 3The chemical entity faces higher capital costs and potential loss of cross-synergies, while Astral's pipes business may re-rate as a pure-play plumbing stock.
Source: IN:Economic Times
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