Astral Ltd. (ASTRA IN) – Analyst Meet Update – Expanding its Building Materials Basket – BUY
Published on 20 May 2026
We attended Astral Limited analyst meet, where management outlined its long-term strategy to strengthen ASTRA position as an integrated building materials company across pipes & fittings, adhesives, construction chemicals, paints and bathware. Management expects the Indian pipes and fittings industry to grow ~8% in volume in FY27, supported by housing, infrastructure and government-led water projects, while industry value growth could reach ~18% aided by elevated polymer prices and improved realizations. Astral is targeting ~10–15% volume growth in the piping segment while sustaining EBITDA margins of ~16–18%. Management also highlighted strong growth opportunities across adhesives, waterproofing, paints and bathware, driven by distribution expansion, premiumization, rural penetration and product diversification. The India adhesives business is expected to grow ~15–20% in FY27, while the paints and bathware businesses are expected to grow ~25%+, with paints turning EBITDA positive.
We upward revise our earnings estimates for FY27/FY28 by 2.9%/2.5%. We estimate sales/EBITDA/PAT CAGR of 17.8%/21.5%/33.0% over FY26-28E. Maintain ‘BUY’ rating with revised DCF-based TP of Rs1,863 (Rs1,813 earlier).
