Accumulate Astral target of Rs 1929 Prabhudas Lilladher

Prabhudas Lilladher recommended Accumulate rating on Astral with a target price of Rs 1929 in its research report dated November 08, 2024.

Broker Research

November 11, 2024 / 15:08 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Astral

ASTRA revised its volume growth guidance in P&F business to 10-15% from >15% and revenue growth guidance in paints & adhesive to 15% from 15-20%. The company maintained its EBITDA margin in Q2FY25 even after inventory losses and volume contraction, mainly on account of increase in VAP mix and cost rationalization and guided EBITDA margin of 16-18% in coming years. We estimate sales/EBITDA/PAT CAGR of 17.1%/18.8%/23.4% over FY24- 27E. Downgrade to ‘ACCUMULATE’.

Outlook

We downward revise Astral Ltd (ASTRA) FY25/26/27E earnings by 10.0%/9.2%/6.7% factoring in the lower volume growth guidance of 10-15% in P&F segment and rising competitive intensity. Further, we downgrade the stock to ‘ACCUMULATE’ from ‘BUY’ with revised DCF-based TP of Rs1,929 (Rs2,214 earlier).

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