Investec has maintained its buy rating on Astral, though it lowered the target price to ₹2,485 from the previous ₹2,550, implying a potential 39% upside from the current market price of ₹1,790. Astral’s Q2 EBITDA missed estimates by 11%, leading the brokerage to make adjustments.
Investec observed that while Astral’s volume decline appeared more pronounced relative to a larger peer, improvements in spread underline the company’s commitment to profitable growth. The brokerage highlighted, “Management’s focus on cost containment is yielding sharp gains, which is a positive indicator.”
Although the company has trimmed its volume guidance, it remains on track to preserve its margin profile. Investec anticipates that regulatory support and expected resin price hikes could foster margin and volume recovery in the second half of FY25.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
