NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
Astral Ltd. delivered a broadly in-line June-quarter performance, prompting IDBI Capital to reiterate its Buy rating on the stock with a target price of Rs 1,714, implying a potential upside of about 17.5% from the current market price of Rs 1,459.
Astral Ltd.'s Q1 FY27 result was in-line with the brokerage's estimate on net sales front, while margins disappointed. The company delivered flat volume growth in plumbing despite an overall industry polymer de-growth of approximately 10% in Q1.
The management expects full-year top-line value growth to outpace volume growth by roughly 10% due to higher realization prices. The proposed chemical unit demerger was called off after considering shareholder feedback, with management stating any future re-evaluation would require reaching a scale of at least Rs 5,000 crore.
The management reiterated full-year plumbing guidance of double-digit volume growth with 16%–18% Ebitda margins, alongside 15%–20% growth guidance for adhesives.
The brokerage has maintained its earnings estimates for FY27E/FY28E and maintain Buy with a TP of 1,714, assigning 55 times PER on FY28E.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
