Astral Share Price: Buy or Sell? Here’s what brokerage reports suggest

Astral Ltd. has garnered attention from various brokerage firms, with each offering insights into its Q2 performance and growth prospects. Here’s a consolidated view of brokerage recommendations, target prices, and key highlights on Astral’s future outlook.

Summary of Brokerage Calls on Astral

Highlights from Each Brokerage

Investec: Buy with Target Price ₹2,485

Upside: 38.77%
Key Insights: Investec cut its target price from ₹2,550 but maintained a Buy rating, noting that Astral’s Q2 EBITDA missed estimates by 11%. Despite weaker volume performance compared to a larger peer, the company’s spread improvement reflects management’s focus on profitable growth. Investec highlighted management’s strong cost-control measures as a positive, despite trimming volume guidance for the near term.

Goldman Sachs: Buy with Target Price ₹2,410

Upside: 34.64%
Key Insights: Goldman Sachs cited largely in-line plumbing results but noted weaker performance in the ‘paints & adhesives’ segment, which drove the miss. However, the brokerage observed that pipe realizations improved by 4% QoQ, leading to better-than-expected margins. Goldman Sachs remains optimistic due to Astral’s margin resilience in core segments, maintaining a positive view on long-term profitability.

Both Investec and Goldman Sachs remain positive on Astral, with Buy recommendations. The brokerages have emphasized Astral’s cost management, spread improvement, and resilient margins despite short-term volume challenges. With an optimistic outlook on profitability, Astral’s long-term growth prospects appear robust.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions. Brokerage views are based on independent analysis.