Astral - Growth Driven By Business Diversification: Prabhudas Lilladher

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We met management of Astral Ltd. to gauge the demand scenario, competitive intensity, capacity expansion in plumbing segment and growth and margin guidance in adhesive segment. The company has maintained its volume growth guidance at more than-20% in pipe and fittings business and 15%-20% revenue growth guidance in paints and adhesive business with consolidated Ebitda margin guidance of over 17% plus. Astral is a consistent quality performer and we believe that it is a compounding story given its-strong market-share gains in piping business, strong growth in REX and tank businesses, healthy growth path in bathware and paints business,strong cash flow (of Rs 7.7 billion over FY24-25E) and healthy growth in domestic adhesive business (+15.2%/>+20% in value/volune 9M FY24). We estimate sales/Ebitda/profit after tax compound annual growth rate of 21.3%/26.1%/33.9% over FY24-26E. We maintain ‘Accumulate’ rating with revised discounted cash flow based target price of Rs 2,244 (earlier Rs 2,064), which implies 57 times FY26 earnings per share..Click on the attachment to read the full report:.Astral - Pipes, Adhesives' Demand, Margin Trends Remain Healthy: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Astral - Growth Driven By Business Diversification: Prabhudas Lilladher

Astral anticipates gaining market share in the upcoming years, guided by robust 15-20% volume growth, surpassing industry's expected growth rate of 8-10%.

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Astral - Growth Driven By Business Diversification: Prabhudas Lilladher

Astral anticipates gaining market share in the upcoming years, guided by robust 15-20% volume growth, surpassing industry's expected growth rate of 8-10%.

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