Astral Q1 Results Review - Healthy Plumbing Volume Growth To Continue; Margins To Improve: Dolat Capital

Dolat Capital Report

Astral Ltd. reported revenue, Ebitda and adjusted profit after tax below our estimates.

We expect plumbing volume growth of 17% for both FY25/FY26 with realizations growing -2%/+1.3% and paints and adhesives revenue growing 19%/17% for the same period.

We decrease our FY25E/FY26E EPS estimates by 11.3%/3.9%, factoring lower plumbing realisation of 4%/2.8% and Ebitda margin of 99 basis points/3 bps.

Astral’s plumbing volumes will be healthy and margins, too, will likely improve as the product mix shifts towards fittings and CPVC. Consequently, we maintain ‘Accumulate’ rating with a revised target price of Rs 2,156 (Rs 2243 earlier) based on 65 times FY26E APAT.

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