Astral Likely to Touch Rs 1863: Prabhudas Lilladher Upgrade

Astral Limited Outlines Long-Term Strategy to Strengthen Position in Indian Building Materials Market

Astral Limited's management outlined its long-term strategy to strengthen the company's position as an integrated building materials company across pipes & fittings, adhesives, construction chemicals, paints, and bathware at an analyst meet. According to the management, the Indian pipes and fittings industry is expected to grow approximately 8% in volume in FY27, driven by housing, infrastructure, and government-led water projects. The industry value growth is anticipated to reach approximately 18%, supported by elevated polymer prices and improved realizations.

Astral is targeting volume growth of approximately 10-15% in the piping segment, while sustaining EBITDA margins of 16-18%. The management also highlighted strong growth opportunities across adhesives, waterproofing, paints, and bathware, driven by distribution expansion, premiumization, rural penetration, and product diversification. Notably, the India adhesives business is expected to grow approximately 15-20% in FY27, while the paints and bathware businesses are anticipated to grow more than 25%.

Earnings Estimates Upward Revised

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Following the analyst meet, Prabhudas Lilladher upward revised its earnings estimates for FY27/FY28 by 2.9%/2.5%. The research firm estimates sales, EBITDA, and PAT CAGR of 17.8%, 21.5%, and 33.0% over FY26-28E, respectively. The 'BUY' rating for Astral Limited has been maintained, with a revised DCF-based target price of Rs1,863 (Rs1,813 earlier).