Astral Ltd. share price target

Healthy performance continues amid margin pressure

Consolidated Q4 revenue grew 23% YoY with pipe/adhesive segments up 22%/27%; pipe volumes increased 11%

Astral Ltd reported consolidated revenue growth of 23.3% YoY with piping/adhesive segment witnessing growth of 22.3%/27% YoY. Piping volume increased 11% YoY with EBIDTA/kg declining by 21.4%/17.9% YoY/QoQ, respectively. Consolidated EBIDTA margin dipped 698bps YoY to 15.6% due to lower profitability in both the segments.

Robust performance with market share gain continues

Consolidated Q3 revenue grew ~23% YoY with pipe/adhesive segments up 25%/16%; pipe volumes dipped 4% due to dealer destocking

Industry leading performance continue

However, given limited short-term upside potential from the current levels but a positive long-term outlook on the company, we recommend a HOLD' rating on the stock with a TP of Rs 2,250/share, implying a downside of -4.6% from CMP.

We expect revenue and PAT CAGR of 19% and 17.5% over FY21-24E and recommend HOLD' with TP of Rs 2,250.