Prabhudas Lilladher has issued a buy rating on Astral Limited with a target price of Rs 1,863 in its research report dated May 21, 2026. According to the brokerage's analysis, the recommendation is based on the company's long-term strategy to strengthen its position as an integrated building materials company across pipes & fittings, adhesives, construction chemicals, paints and bathware segments.
Management outlined optimistic growth expectations for the Indian pipes and fittings industry, projecting volume growth of ~8% in FY27. As reported by Prabhudas Lilladher, this growth is expected to be supported by housing, infrastructure and government-led water projects. The industry value growth could reach ~18%, aided by elevated polymer prices and improved realizations. Astral is specifically targeting 10-15% volume growth in the piping segment while sustaining EBITDA margins of 16-18%.
The company has identified strong growth opportunities across multiple segments driven by distribution expansion, premiumization, rural penetration and product diversification. According to the brokerage's analysis, the India adhesives business is expected to grow 15-20% in FY27, while the paints and bathware businesses are expected to grow 25%+. Notably, the paints business is expected to turn EBITDA positive during this period.
Prabhudas Lilladher has upward revised its earnings estimates for FY27/FY28 by 2.9%/2.5% respectively. The brokerage estimates sales/EBITDA/PAT CAGR of 17.8%/21.5%/33.0% over FY26-28E. The target price has been revised upward from the previous Rs 1,813 to Rs 1,863, based on a DCF-based valuation methodology.
