Astral - Demand, Margin Trends Remain Favorable: ICICI Securities
We believe Astral has near-term margin and demand tailwinds in both its major businesses.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
We interacted with the management of Astral Ltd. and following are the key takeaways:
the demand trend in pipe market remains healthy in Q4 FY23-to-date with double-digit volume growth YoY driven by the plumbing segment;
operating margins are expected to improve QoQ in Q4 FY23 for both pipes (as inventory losses are not likely to recur in Q4 given that PVC resin prices have stabilised) and adhesives (fall in raw material prices to result in normalised margins);
ramp-up in bathware segment (sanitaryware and faucetware) is progressing well and the company has opened ~320 showrooms/display centres as of February 2023.
According to management Astral is on track to achieve pipe volume growth and adhesive revenue growth in high double-digits YoY in FY23.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.