Astral Q2 Results Review - Robust Volume Growth, Beat Our Earnings Estimate: Prabhudas Lilladher

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Astral Ltd. upward revised its volume growth guidance at more than -20% in pipe and fittings business and ~15%/20% volume/revenue growth guidance in paints and adhesive business, with consolidated Ebitda margin guidance of 17-18% alongside improvement in volumes and correction in raw material prices and breakeven in sanitaryware business in couple of quarters. Astral reported strong expansion in gross margin (+870 basis points YoY) in Q2 FY24, even after inventory loss (Rs 200 million) on account of increase in value added product mix and lower raw material procurement cost. However, increase in front-loaded expenses for growth, led to relatively lower expansion in Ebitda margin (+390 bps YoY), which will reflect in numbers over coming quarters with product mix change & increase in revenue. .Astral is trading at 63 times/49 times FY25/FY26 earnings; we still believe that the company is a consistent quality performer and is a compounding story. With strong performance in H1 FY24, strong volume guidance of 15-20% and margin improvement in FY24, we maintain our FY24 estimates with 22% revenue growth and 18.2% Ebitda margin in H2 FY24.We estimate Sales/Ebitda/profit after tax compound annual growth rate of 17.7%/24.8%/32.9% over FY23-26E and value the stock on discounted cash flow based target price of Rs 1,983 which implies 56 times September-25 earning per share. Maintain ‘Hold’..Click on the attachment to read the full report:.Persistent Systems Q2 Results Review - Rich Valuation Factors In The Robust Growth Outlook: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Astral Q2 Results Review - Robust Volume Growth, Beat Our Earnings Estimate: Prabhudas Lilladher

Plumbing business posted revenue of Rs 9.8 billion which was up by 17.3% YoY.

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