Founded in 1996 and headquartered in Ahmedabad, Astral Ltd is a leading force in India’s building materials sector. With 19 manufacturing units across India, the UK, and the USA, and a distribution network of over 229,000 dealers and 3,303 distributors, the company offers products ranging from CPVC and PVC pipes and adhesives to sanitaryware, faucets, tanks, and paints. It is listed on the NSE and BSE and had a market cap of ₹38,700 crore.
📊 Financial Performance: Mixed Signals in FY25
Q1 FY25
Revenue: ₹1,384 crore (+8% YoY)
Net Profit: ₹120 crore (+47% YoY)
Branding expenses: ₹20 crore (one-time cost)
Q2 FY25
Revenue: ₹1,370 crore (+0.5% YoY)
Net Profit: ₹109 crore
Hit by 13% fall in PVC prices and ₹10–15 crore inventory loss
Q3 FY25
Revenue: ₹1,397 crore (+2% YoY)
Net Profit: ₹113 crore (–29.8% YoY)
Despite stable revenue and margin control, profits were hit by cost pressures and weak volume growth
🏭 Expansion & Strategic Updates
Capex: ₹282 crore (H1 FY25); full year estimate ₹350 crore
New Plants:
Hyderabad: 21,000 MT pipes + tanks production started
Ghiloth: CPVC and SWR fittings operational
Kanpur: Construction underway, trials by Q4 FY25
Product Launches:
Fire Pro UL-certified fittings for exports (Europe, Gulf)
Channel drains and new valve/fitting lines in the pipeline
OPVC pipes ready pending BIS approval
Export Market: Dubai office opened to capture UAE, Gulf, and African demand
📈 Historical Financials: Consistency Meets Caution
FY23
Revenue: ₹5,158 crore
EBITDA Margin: 15.60%
CFO: ₹557 crore; FCF: ₹77 crore (hit by ₹480 crore in capex)
ROCE: 18.70%
FY24
Revenue: ₹5,642 crore
EBITDA Margin: 16%
CFO: ₹825 crore; FCF: ₹610 crore
ROCE: 23%
FY25
Revenue: ₹5,832 crore
EBITDA Margin: 16%
CFO: ₹630 crore; FCF: ₹514 crore
ROCE: 20.30%
Key Trends:
Revenue grew at a CAGR of 19.70% from FY20 onwards
Cash generation strengthened post-capex cycle
ROCE remains strong, though slightly below key peer
📉 Valuation & Technicals: Is the Premium Justified?
P/E: 74 against the industry median of 26
Stock Price down almost 40% from 52-week high of ₹2,454 and RSI standing neutral at 62
Shareholding Trends (March 2025):
FIIs: 20.17%; DIIs: 14.60%; Promoters: 54.10% (stable) and Public: 11.12%
🧮 SWOT Analysis
Strengths
Brand dominance in CPVC market; Vast distribution and manufacturing scale and Low leverage (Debt to Equity 0.03)
Weaknesses
High valuations; Underperformance in new business verticals; Thin free cash flows during heavy capex cycles
Opportunities
Infrastructure tailwinds like Jal Jeevan Mission; Adhesives & paints growing at 15% CAGR and Export potential (Africa, Gulf, Europe)
Threats
Raw material and FX volatility; Competitive pressure from Finolex, Supreme and Regulatory risks in plastic usage
Price Action on Daily Chart: New entrants might consider accumulating for a better risk-reward profile as it is on the Golden Crossover at 10 – 50 days SMA and SuperTrend is suggesting the up move and volumes are surging up.
🔮 The Road Ahead
Revenue CAGR guidance: 15–20% (FY24–FY26)
New product lines to contribute ₹1,500 crore over 5 years
Adhesive market share goal: 6–7% from 4.70% currently
📌 Weekly Chart and the Final Take
Astral stands at a turning point — a fundamentally sound company entering a diversification phase. While its core remains strong, the performance of newer segments and high valuation metrics warrant caution.
From the weekly chart, seems the stock has taken the support from the lows of March 2023 and Jun 2022, and the stock seems ready for an up move and may be an opportunity with a focus on execution in FY26.
🛑 Disclaimer
This analysis is for educational and informational purposes only and does not constitute any financial advice. All data is sourced from public company filings, analyst reports, and third-party sources believed to be reliable. In line with SEBI’s guidelines, all market data is presented with a three-month lag. Investors should carry out their own due diligence and consult the financial advisor before making any investment decisions. The views expressed are personal and may be subject to errors or bias.
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