First Read: Astral Limited "Healthy finish to FY26; stronger growth outlook"

研报英文原文证据摘录

First Read: Astral Limited "Healthy finish to FY26; stronger growth outlook"

82 20.81

has grown by 23%. UK Adhesives revenue for FY26 grew by 12.6% with EBITDA % of 03/27E 29.95 26.90

3.9%. The bathware segment continued its growth momentum and delivered 27% YoY 03/28E 38.73 33.63

growth in FY26. In Q4, the company spent additional Rs160mn on marketing activities

to sign a new brand ambassador. Shaleen Kumar

Analyst

shaleen.kumar@ubs.com

Astral well positioned to gain +91-22-6155 6065

PVC prices rose sharply between Jan-March, up ~65% from December lows, driven by

Angad Saluja

higher crude-linked raw material costs, China’s removal of export rebates, supply

Associate Analyst

disruptions in Asia, and limited capacity headroom at ~80% utilization. With elevated angad.saluja@ubs.com

freight costs and tight VCM supply further sustaining prices. Despite some cooling in +91-22-6155 6174

April, prices are expected to remain structurally high, favoring larger, well-capitalized

Lavanya Tottala

players. Currently, prices on average are higher by 15-20% from last year 1Q base. While Analyst

pressuring smaller manufacturers facing working capital and inventory challenges. In lavanya.tottala@ubs.com

this environment, Astral is well positioned to outperform, supported by continued +91-22-6155 6053

market share gains. Its newly ramped-up plants in Kanpur and Hyderabad are driving

volume growth and expanding geographic reach, while its strong brand and scale

enable it to benefit from higher realizations.

Valuation: Maintain Buy with an unchanged PT of Rs2,150

We maintain our Buy rating on Astral with an unchanged PT of Rs2,150, assigning a 55x

(unchanged) PE multiple to our FY28E earnings.

Highlights (Rsm) 03/23 03/24 03/25 03/26E 03/27E 03/28E 03/29E 03/30E