Astral's stock fell sharply after the company announced plans to separate its chemicals business from its plumbing operations. Market reaction reflected investor worries about the standalone chemicals unit's prospects.
The shares declined 11 percent in response to the demerger news. Concerns centered on the valuation and growth outlook for the chemicals entity, which currently underperforms compared with the profitable plumbing segment.
Analysts retained buy ratings on the stock despite the move. Several brokerages reduced their target prices following the announcement.
The company stated it expects the chemicals division to deliver significant revenue growth in the years ahead.