Morgan Stanley has reiterated its Equal-Weight rating on Astral Ltd with a target price of ₹1,489 following the company’s weaker-than-expected Q1FY26 performance.
Revenue was 10% below Morgan Stanley’s estimates, led by a 13% miss in the pipes segment. The shortfall was attributed to flat pipe volumes (versus expectations of 7% growth) and a 7% year-on-year decline in realisations (versus expected 1% growth).
Segment margins also came under pressure, with plumbing margins dropping 345 basis points YoY to 10.4%, the lowest in ten quarters, while adhesives and paints margins declined 220 bps YoY to 4.8%. Average PVC prices were down 14% YoY and 4–5% QoQ, leading to inventory losses.
The brokerage noted that the paint segment revenue grew 21% YoY, better than its estimate of 10%, but the overall weakness in pipes overshadowed the positives.
Disclaimer: The above views are those of the brokerage. Investors should consult a certified financial advisor before making any investment decisions.
