- Naranj Research Desk
- 🇸🇦 Saudi Stock Market
- 🇺🇸 USA Stock Market
Astra Industrial Group (AIG) is a large company based in Riyadh that works in many different businesses. These include making medicines, chemicals, mining, steel, farming, and energy.
The company is worth 14.10 billion Saudi Riyals on the stock market. AIG has been doing very well – its stock price went up 89% in one year, which is much better than most other companies in Saudi Arabia.
In 2023, AIG made 2,858 million Saudi Riyals in sales, which was 10% more than the year before. The company’s EBITDA margin has shown a notable increase to 21.5%.
AIG fits well with Saudi Arabia’s Vision 2030 plan for the country’s future. Because the company works in many different areas, it’s in a good position to keep growing as Saudi Arabia’s economy expands.
Astra Industrial Group is based in Riyadh, Saudi Arabia, where it specializes in the production, marketing, and distribution of a wide range of products. These include pharmaceuticals, polymer compounds, plastic additives, color concentrates, and various plastic items, as well as pre-engineered steel buildings and structures, both domestically and internationally. The company also has a strong focus on the energy sector, particularly in power generation, distribution, substations, and power rental services.
Astra Farms is dedicated to cultivating a variety of products, including fruits, vegetables, flowers, quails, poultry, dairy, and processed foods.
Astra Grains, primarily situated in Jeddah, is involved in the general trading of food commodities, offering items such as nuts, pulses, spices, edible oils, coffee, rice, and more.
Astra Commercial operates in the north-western region of Saudi Arabia, focusing on the retail and wholesale of grocery products, bakery items, and gas stations. Additionally, Astra Industries is active in sectors such as mining, financial services, investment, education and healthcare, real estate, hospitality, media, and telecommunications.
The subsidiaries of the group operate both within and outside the Kingdom of Saudi Arabia.
1. Analysis on Monthly Chart
2. Analysis on Daily Chart
3. Relative Strength Analysis
ASTRA — TASI —
In the fiscal year 2023, cash flow from operations saw an impressive surge of 90%, rising to 681 million SAR compared to 357 million SAR in FY22. This remarkable - growth underscores the strength and efficiency of the company's operational strategies.
Astra Industrial Group’s growth is driven primarily by its pharmaceutical and diversified industrial sectors.
In summary, Astra Industrial Group's robust performance in pharmaceuticals, coupled with strategic diversification into chemicals and mining, positions it well to leverage opportunities within Saudi Arabia’s dynamic economic environment.
We give a “BUY” rating to Astra Industrial Group. It presents a compelling long-term investment opportunity in Saudi Arabia's diversifying economy. AIG delivered exceptional 89% annual returns, significantly outperforming the TASI.
The company's diversified portfolio across pharmaceuticals, chemicals, mining, steel, farming, and energy provides stability and growth potential.
Strategically aligned with Vision 2030's economic diversification goals, AIG is positioned to capitalize on the Kingdom's industrial transformation, making it an attractive long-term investment for growth-oriented investors.
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ANALYST SUMMARY
This research is prepared by the Naranj Capital research team under the guidance of Arijit Banerjee, CMT, CFTe, Founder and Director of Naranj Capital. Stock selection and all trade levels, including the buy range, targets and stop-loss, are personally finalised by him.
Arijit is a veteran trader and active investor with over 16 years of experience across global markets. He has in-depth expertise in financial market research, advanced technical analysis, market cycles, algorithmic trading and portfolio management. He is a Chartered Market Technician (CMT), accredited by the CMT Association, USA, the leading global authority on technical analysis. He also holds the Certified Financial Technician (CFTe) designation from the International Federation of Technical Analysts (IFTA).
The views expressed herein are based on publicly available information, internal research and other sources believed to be reliable, but not necessarily all-inclusive and not guaranteed as to accuracy. The recommendations provided herein are solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. Past performance is not indicative of future results. To read the full disclosure, please click here.
