Hold Astral; target of Rs 1909: ICICI Securities

Hold

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26 Aug, 2025 12:21

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ICICI Securities' research report on Astral

In Q1FY24, Astral reported pipes volume growth of 31.1% YoY (4-year CAGR of 10.9%). Consol revenue grew 5.8% YoY with pipes/adhesives segments growing ~6%/9% YoY. Consolidated EBITDA margin improved 165bps YoY (-480bps QoQ) to 15.7%, leading to EBITDA/APAT growth of 18.2%/26.4% YoY. Pipes EBITDA/kg declined 5.4% YoY to INR35.2 due to inventory losses of ~INR 150mn (adj. EBITDA/kg of ~INR38). Adhesives margin was flat YoY. Management stated demand for pipes was strong and has guided for pipes vol CAGR of 15% for next 5 years with EBITDA/kg of INR 35- 40. It maintained its guidance for ~15-20% revenue growth in adhesives and margin of >15% in FY24.

Outlook

We tweak our PAT estimates by 1% for FY25E and maintain HOLD rating with a rolled-over Sep’24 TP of INR 1,909 (earlier: INR1,805)

For all recommendations report, click here

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Astral - 17 -08 - 2023 - isc