Buy Astral; target of Rs 1831: ICICI Securities

The latest market report highlights that ICICI Securities research report on Astral

We recently met Astral’s management. Key insights: 1) Pipe demand in Q2FY27-TD has been healthy, and the firm is on track to achieve its guidance of double-digit volume expansion in FY27. 2) Astral notes margin tailwinds in pipes due to elevated PVC prices and is confident of at least achieving its OPM guidance of 16–18%. 3) Its CPVC resin plant is on track, aiming for commercial production in Q4FY27; this would likely augment volumes and improve its margin outlook in the pipe segment from FY28. 4) Firm traction in the India adhesive business continues despite high RM volatility; the business is on track to achieve its FY27 topline expansion guidance of 15–20%.

Our conviction, estimates and thus, rating (BUY) for Astral stay unchanged. Our SoTP-based TP, rolled over to Sep’27E, is INR 1,831 (vs. INR1,783).

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