HDFC Securities' research report on Astral
Astral continues to deliver a strong show in plumbing. It also expects to scale up its adhesives & paints (A&P) margin performance. The bathware segment is gaining traction and Astral expects to turn EBITDA positive by Q4FY24. In Q1FY24, its consolidated revenue/EBITDA/APAT rose 6/18/35% YoY, due to a strong show in the plumbing segment (robust volume and margin performance). Astral is adding plumbing capacities in Guwahati, Hyderabad and Kanpur over the next two years and its adhesive plant will become operational by Sep-23.
Outlook
We maintain REDUCE on Astral, as we believe its valuation remains expensive. We revise our target price to INR 1,820/sh (58x its Mar-25E EPS).
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