Prabhudas Lilladher has issued a 'BUY' rating on Astral Ltd with a target price of Rs 1,794, as reported in their research report dated February 06, 2026. The brokerage has revised their DCF-based target price upward from the previous Rs 1,736, reflecting improved confidence in the company's prospects. According to the research report, the recommendation comes despite the company facing a challenging demand environment in the plastic pipe segment.
Astral Ltd demonstrated resilient operational metrics in its plastic pipe segment, achieving healthy volume growth of 16.8% despite weak market conditions. The company delivered a plumbing EBITDA margin of 18.2% even after absorbing an inventory loss of Rs 200-250 million. EBITDA per kg for the plastic pipes segment stood at Rs 31.7, approximately Rs 35/kg excluding inventory loss. As reported by Prabhudas Lilladher, the company maintained its double-digit volume growth guidance in the piping segment with EBITDA margin expectations of 16-18%.
The brokerage expects Astral to achieve 15.0% volume CAGR in its P&F business over FY26-28. According to Prabhudas Lilladher's analysis, the company has appointed a new CEO for its UK adhesives business and expects gradual recovery going forward. Additionally, the company anticipates the removal of China's VAT rebate, which could lead to a Rs 7-10/kg increase in PVC prices (already Rs 7/kg PVC price hike during January-February 2026), potentially supporting higher volumes.
Prabhudas Lilladher estimates sales/EBITDA/PAT CAGR of 15.9%/18.7%/26.4% over FY26-28E for Astral. The brokerage has tweaked the company's FY27/28E earnings by 1.3%/1.2% respectively. As reported in the research report, the revised target price reflects updated financial projections and improved confidence in the company's ability to deliver strong growth across key financial metrics.
