Astral Ltd. share price target

PVC pipe demand is expected to rebound from Q2FY26 after a subdued start in Q1, which was hit by declining PVC prices, early monsoons, lower government spending and inventory losses.

Astral Ltd (ASTRA) has reported flat volume growth of 0.5% in the plastic pipe segment due to weak demand scenario and delays in ADD on PVC resin. Its plumbing EBITDA margin contracted by 150bps YoY to 16.4%, with EBITDA per kg for the plastic pipe segment at Rs 27.9 after inventory loss of Rs 250mn in Q1FY26. During the quarter, PVC prices declined by 14% YoY. However, from Q2FY26, prices stabilized, and volumes began to recover. In July'25, the company recorded a 30% YoY volume growth. We anticipate ASTRA will...

We maintain our BUY recommendation on the stock.

Astral Ltd.'s Q1FY26 result was below our estimates on key parameters. Though Q1 typically sees higher PVC volume due to agricultural demand, this quarter was impacted due to early monsoon which reduced CPVC volume and valueadded products. Further, plumbing segment volume remained flat in Q1 due to low demand, early monsoon, and low government spending. During the quarter polymer prices were volatile resulting into inventory losses and affected on realization. Despite headwinds, the management is confident of achieving double-digit growth for FY26. We have reduced our net sales/EBITDA estimates by 6%/14% and 6%/11% respectively over FY26E/FY27E. Maintain BUY with a...

Astral reported a lower-than-expected Q1FY26 with pipe volume growth of 0.5% YoY (6-year CAGR of 10%). Consol. revenue fell 1.6% YoY with pipes/adhesives segments being -6.7%/+8.6% YoY. Pipes’ reported EBITDA/kg declined 14.3% YoY to INR 27.9/kg (adjusted for inventory losses of INR 250mn, it was flat YoY).

We recommend a BUY on the stock with a TP of Rs 1,680/share, implying an upside potential of 12% from the CMP.

Reported a healthy pipe margin in Q4FY25, despite operating amidst weak demand conditions and falling resin prices

Astral Ltd (ASTRA) has reported soft volume growth of 1.3% in the plastic pipe segment (as expected) due to weak demand scenario and delays in ADD on PVC resin prices. However, its plumbing EBITDA margin remain flat YoY at 20.4%, with EBITDA per kg for the plastic pipe segment at Rs37 even after inventory loss in Q4FY25. This was considered healthy given the current challenging demand environment, largely due to an increase in the VAP mix and cost rationalization efforts. With the upward reversal in PVC resin prices,...

As per market consensus, Astral Ltd. is currently trading at 1year fwd. P/E of 51x (which is at ~23% discount to 5 year Avg P/E. 67x). The long-term growth story of Astral is intact on the back of superior product mix, leadership within CVC pipes segment, new launches, an extensive distribution network and a healthy balance sheet....

We recommend a BUY rating on the stock with a target price of Rs 1,475/share, implying an upside of 10% from the CMP.

In the extremely volatile PVC pricing context Astral’s performance was decent though revenue was up only 0.5% to a muted Rs13.7bn.

Continuous EBITDA deterioration due to low PVC Prices, and higher PEx multiples are not sustainable. Therefore, we retain our HOLD rating with TP Rs 1,800/share.

Demand headwinds eased by healthy plumbing margins

Misses estimates on weak pipe volumes (-2.5% YoY) and continued subdued performance of SEAL IT & paints business

We retain BUY on Astral with a revised PT of Rs. 2,150, factoring downwardly revised estimates and valuation multiple owing to near-term demand sluggishness.

We interacted with Astral Ltd (Astral’s) management. Demand in pipe market was muted in Jul–Aug’24 due to volatility in PVC prices.

We have Hold on the stock