Astral shares will be in focus after Jefferies reiterated a Hold rating on the stock with a target price of ₹1,565 per share, implying a modest 4% potential upside from the current market price (CMP) of ₹1,500.10.
Jefferies estimates that sales and EPS CAGR will be +14% and +19%, respectively, over FY25 to FY28.
However, the brokerage flagged that after a 17% rally in the past three weeks, the stock now trades at 66x FY26E PE, which looks expensive.
Jefferies also pointed out that current valuations are 25% above Astral’s historical 10-year average PE.
On the industry side, Astral forecasts industry growth at around +6-7%, while the company targets to maintain its own growth at low double-digits going forward.
Jefferies remains cautious in the near term due to rich valuations, despite acknowledging Astral’s strong long-term earnings profile.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
