Hold Astral; target of Rs 2100: ICICI Direct

ICICI Direct's research report on Astral

Astral is the leader in the CPVC piping segment and expanding into the other building material business such as adhesive, paints and sanitary ware. Astral is the third largest piping company with a value market share of 9%. In FY22, Piping, adhesive contributed 77%, 23%, respectively, to its topline • Healthy b/s reflected in strong return ratios (RoE: 21%, RoCE: ~27%).

Outlook

We maintain our HOLD rating on the stock. We value Astral at Rs 2100 i.e. 58x P/E on FY24E EPS.