'Buy' Astral Shares Maintains Motilal Oswal, Sees Upto 21% Upside — Check Target Price

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Motilal Oswal Report

Astral Ltd. is well-positioned for healthy growth and margin expansion, driven by backward integration in CPVC resins and scale-up of new businesses like adhesives, paints, and bathware.

With significant capex done recently, antidumping duty support, and capacity doubling, profitability is set to improve, and the company aims to sustain industry-leading growth rates over FY25-28E.

We forecast a 15%/18%/23% compound annual growth rate in sales/Ebitda/adjustd profit after tax over FY25-28E fueled by an increase in capacity, backward integration of CPVC resins, the possibility of a levy of anti-dumping duty on China (for import of PVC pipes), and gradual scaleup of new businesses.

We reiterate our Buy rating on the stock with an SoTP-based target price of Rs 1,650.

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