Astec Lifesciences

Even if Astec becomes 50% of PI Industries, it can be a multi-bagger.

Too many things here are too far out in the future. R&D Center is operational by January 2022 - and that is too far out. They are claiming they will enter into newer industries mostly in chemicals - with a lot of capex planned with the idea of clients wanting to de-risk. Everyone wants to enter CRAMS today because of higher margins. If too many enter this CRAMS business, margins may fall.

If we look at PI Industries, they have good execution history, have raised 2000 crore QIP for acquisitions and has a war chest. It may not be easy for Astec to wrestle share from PI Industries, especially when PI has strong relationships with its customers

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