Now Reading: Astral shares jump 10% on strong Q1 profit, brokerages turn bullish
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Astral shares jump 10% on strong Q1 profit, brokerages turn bullish
Astral shares jump 10% on strong Q1 profit, brokerages turn bullish
Astral shares surged nearly 10% to Rs 1,599 on Thursday after the company reported a 51.8% rise in consolidated net profit to Rs 120.2 crore for Q1 FY27, driven by higher plant…
The Story in Brief
Astral shares surged nearly 10% to Rs 1,599 on Thursday after the company reported a 51.8% rise in consolidated net profit to Rs 120.2 crore for Q1 FY27, driven by higher plant utilisation and a shift to high-margin products. EBITDA rose 25.8% to Rs 244 crore, with margins expanding 120 basis points to 15.5%. While the piping industry contracted 10%, Astral kept volumes flat and gained market share.
Several brokerages turned bullish: Citi retained a Buy with a target of Rs 1,900, Nuvama upgraded to Buy from Hold at Rs 1,675, and UBS kept Accumulate at Rs 1,950. Motilal Oswal also maintained Buy at Rs 1,697. CLSA, however, kept Hold with a Rs 1,490 target, saying valuations already price in near-term recovery. Management expects double-digit volume growth and over 20% value growth in FY27.
The Indian Opinion
The rush to upgrade Astral after one quarter of resilient numbers is understandable, but investors should notice the cautious hold from CLSA, which wants proof of sustained margin expansion in paints and adhesives before re-rating. The narrative that Astral has single-handedly dodged an industry contraction of 10% rests heavily on July being a real inflection point, not a one-off. One quarter of flat volume against a shrinking industry is commendable, but the real test begins now: can Astral deliver the double-digit volume growth Citi and Nuvama expect in Q2, or will the broader headwinds catch up?
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
