ICICI Direct has given Hold recommendation for Astral with a target price of Rs. 2100 in its research report issued on Aug 16, 2022
ICICI Direct’s research report on Astral
Astral is the leader in the CPVC piping segment and expanding into the other building material business such as adhesive, paints and sanitary ware. Astral is the third largest piping company with a value market share of 9%. In FY22, Piping, adhesive contributed 77%, 23%, respectively, to its topline • Healthy b/s reflected in strong return ratios (RoE: 21%, RoCE: ~27%).
We maintain our HOLD rating on the stock. We value Astral at Rs 2100 i.e. 58x P/E on FY24E EPS.