Geojit Financial Services has issued a buy rating on Astral Ltd. with a target price of Rs 1,912 in its research report dated April 13, 2026. According to the broker's analysis, the recommendation is based on 58x FY28E EPS valuation, reflecting the company's premium CPVC positioning and visible post-capex earnings inflection.
Astral Ltd., founded in 1996 and headquartered in Ahmedabad, is India's leading CPVC pipe manufacturer. As reported by Geojit, the company pioneered CPVC pipes in India in 1999 and has since diversified into adhesives, paints, and bathware, operating 19 manufacturing facilities across India, the UK, and the USA. The company commands approximately 25% share in the organised CPVC segment with consistently superior EBITDA margins of 16-17% across market cycles.
The Indian plastic pipes market is estimated at USD ~7.4 billion and is projected to grow at a 14% CAGR over FY25–FY31, driven by Government of India initiatives such as Jal Jeevan Mission, rising urbanisation, and a structural shift toward organised players. According to Geojit's analysis, this growth trajectory positions Astral favorably in the expanding market.
Geojit expects Astral's revenue to grow at a 16.5% CAGR over FY26–28E, with an earnings CAGR of approximately 28.1% as capex normalises and new plants ramp up utilisation. EBITDA margins are projected to expand from 16.2% in FY25 to approximately 17.7% by FY28E, driven by operating leverage from improved utilisation and benefits from backward integration through Nexelon, expected to commence from Q4FY27.
ROE is expected to recover from approximately 15.1% in FY25 toward 17.5% by FY28E, as asset turns improve with utilisation recovery and margin expansion from backward integration. As reported by Geojit, the valuation reflects Astral's premium CPVC positioning, visible post-capex earnings inflection, and structurally lower earnings volatility relative to peers.
