06-Nov-2026 08:06:53
JPM on Astral : OW, TP Rs 1635
ASTRA’s 19% yoy volume growth, while reasonable, was likely slightly softer than expectations, given peer-commentary on real estate demand being strong in 2Q, and the ~40% growth until mid-August - as communicated by management Key disappointment was on margins, which contracted by 155/318bps qoq/yoy to 13.1%, impacted by the staggered pass-through of higher RM costs. While adhesives+paints qoq margin compression was expected (given commentary/prints from peers), ‘Pipe’ EBITDA declining to ~Rs31/kg from ~Rs/35kg qoq/yoy was a negative surprise. While management highlighted that price escalations are now complete and margins should recover in 3Q, in context of SI’s qoq flattish 'Pipe’ EBIT/kg in 2Q, despite fact that ASTRA has higher exposure to the superior-margin Real Estate sector, print was disappointing
ASTRAL LIMITED