Astral Ltd Sees Price Target of Rs 1800 by Anand Rathi

Astral Delivers In-Line Q4FY26 Performance, Guides Positive Outlook for FY27

Astral, a prominent player in the industry, has reported a broadly in-line performance in Q4FY26 with notable growth in revenue, EBITDA, and APAT. The company's revenue saw a year-on-year (y/y) growth of 24.2%, while EBITDA and APAT registered growth of 26.8% and 26.9%, respectively.

Notably, Astral has consistently demonstrated industry-leading volume growth and margin for the past three consecutive quarters. The management has expressed a positive outlook across various product segments for the fiscal year 2027 (FY27). Specifically, the company expects to gain significant market share in the CPVC pipe portfolio and improve the pipe segment margin by 200 basis points with the start of the CPVC resin backward integration project from Q4FY27.

Strong Growth Projections and Improved Margins

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We expect Astral's earnings per share (EPS) to exhibit a strong compound annual growth rate (CAGR) of 32.3% over the period of FY26 to FY28e. Furthermore, the company's pre-tax return on invested capital (RoIC) is expected to remain healthy at 31%. These projections indicate a promising outlook for the company's future growth and profitability.

Revised Recommendation

We maintain a BUY rating on Astral with a revised target price (TP) of Rs1,800 (from Rs2,000 earlier). This revised TP values the company at 50x on FY28e EPS, compared to the previous valuation of 55x.

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Note: The table above presents a comparison of Astral's Q4FY26 performance across revenue, EBITDA, and APAT growth.