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PL Capital Report
Astral Ltd. reported healthy volume growth of 24.2% in the plastic pipe segment. The company delivered a plumbing Ebitda margin of 22.9% with a negligible impact of inventory gain. Ebitda per kg for the plastic pipes segment stood at Rs 41.9. The benefit of higher PVC resin prices is expected to reflect from Q1 FY27 onwards.
Management also expects PVC resin prices to rise further by Rs 5–7/kg, as China landing prices have already increased by Rs 3–4/kg. Accordingly, with rising raw material prices, volume offtake is expected to witness an uptick in the coming months.
Post commissioning of the new CPVC resin plant, the company is expected to gain meaningful market share in CPVC pipes and fittings along with margin improvement, with the full benefits likely to accrue from FY28 onwards. Company maintained its double-digit volume growth guidance in the piping segment with Ebitda margin of 16-18%.
PL Capital expects Astral to achieve 15.0% volume CAGR in its P&F business over FY26-28. During FY26, the Adhesive India business reported 15.1% revenue growth with Ebitda margin of 15.1%, while the brokerage expects double-digit revenue growth to continue going forward.
PL Capital estimates sales/Ebitda/PAT CAGR of 16.6%/20.2%/31.3% over FY26-28E.
The brokerage has cut its earnings estimate for FY27/28E by 4.4%/4.0%. Maintain ‘Buy' rating with revised DCF-based target price of Rs 1,813 (Rs 1,876 earlier).
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