ASTRAL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.7

📊 Core Financials Overview

Profitability

ROCE of 22.3% and ROE of 16.4% reflect solid operational efficiency and capital utilization.

EPS of ₹19.9 is decent, but quarterly PAT dropped from ₹190 Cr to ₹96.6 Cr — a sharp 24.6% decline that raises short-term concerns.

Leverage & Cash Flow

Debt-to-equity ratio of 0.03 — virtually debt-free, a major strength.

Dividend yield of 0.26% is low, suggesting reinvestment focus over income distribution.

📉 Valuation Metrics

Metric Value Commentary

P/E Ratio 73.4 Extremely high vs. industry average (23.6) — significantly overvalued

P/B Ratio ~10.9 Premium valuation relative to book value ₹134

PEG Ratio 11.5 Very high — implies growth is overpriced

Intrinsic Value ₹1,250–1,350 Current price of ₹1,462 exceeds fair value zone

🏭 Business Model & Competitive Edge

Sector: Astral operates in building materials — pipes, adhesives, and infrastructure products.

Moat: Strong brand, diversified product portfolio, and pan-India distribution network.

Growth History: Over the past 5 years, Astral has delivered 185.6% returns with consistent revenue growth

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Challenges: Recent profit dip and high valuation may reflect margin pressure or demand slowdown.

📈 Technical & Entry Guidance

Current Price: ₹1,462 — near 50 DMA (₹1,431) and slightly below 200 DMA (₹1,507), indicating consolidation.

RSI: 56.7 — neutral zone, no strong momentum.

MACD: Positive at 15.4 — mild bullish signal.

Entry Zone: ₹1,300–1,350 offers better value and downside cushion.

🕰️ Long-Term Holding Outlook

Strengths: Low debt, strong brand, and historical growth.

Risks: Overvaluation, recent earnings dip, and low dividend yield.

Recommendation: Hold if already invested. New investors should wait for a dip near ₹1,350 before accumulating. Long-term outlook remains positive, especially with infrastructure and housing demand driving sector growth.

For analyst targets and deeper insights, check Trendlyne’s research reports on Astral

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or explore long-term forecasts and technical levels

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