Astral - Pipes, Adhesives' Demand, Margin Trends Remain Healthy: ICICI Securities

"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..ICICI Securities Report.Astral Ltd. is among the leading players in India’s CPVC/PVC plumbing pipe market. It has a wide-ranging product portfolio, robust brand and large distribution reach, which will likely enable it to benefit from the growing preference for organised players. Its adhesives business further boosts growth prospects. Astral is expected to deliver Ebitda and profit after tax compound annual growth rates of 19.7% and 26.5%, respectively over FY23-FY26E, with strong return ratios (return on equity of 22.9% in FY26E). Retain 'Hold' with an unchanged March 2025E target price of Rs 1,949, set at 58 times one-year forward price/earnings..Key downside risksSlowdown in housing market causing lower demand.Sharp fall in PVC prices, which may adversely impact profitability of pipe segment due to inventory losses.High increase in prices of raw materials for adhesives could impact segmental profitability and demand.Failure to scale-up the new businesses of sanitaryware, faucetware and paints. Inability to properly merge the paint company acquisition. .Key upside risks Surge in PVC prices, which could result in better-than-expected profitability for plastic pipes. Better-than-expected pick-up in the demand scenario..Click on the attachment to read the full report:.GAIL India - Attractive Valuation; Steady Earnings Momentum; Reiterate Buy: 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 - Pipes, Adhesives' Demand, Margin Trends Remain Healthy: ICICI Securities

Management indicated demand for pipes has remained steady in the ongoing busy season with 15%+ volume growth YoY in Q4 FY24-to-date driven largely by the plumbing segment.

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Astral - Pipes, Adhesives' Demand, Margin Trends Remain Healthy: ICICI Securities

Management indicated demand for pipes has remained steady in the ongoing busy season with 15%+ volume growth YoY in Q4 FY24-to-date driven largely by the plumbing segment.

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