A leading manufacturer in India’s building materials sector, renowned for its innovative plumbing solutions and diversified product portfolio, is making waves with its latest manufacturing expansion. The company’s recent announcement about commencing commercial production of SWR fittings at its new Ghiloth plant signals a strategic move to strengthen its position in the plumbing infrastructure market, promising enhanced capabilities and market reach.
Share Price Movement
The share price of Astral Limited went down 1.84 percent to Rs. 1,467.95 per share on Friday, a decline from its previous close of Rs. 1,495.50 per share. The market capitalisation now stands at approximately Rs. 39,434 crore as of January 24, 2025.
Recent Update
Astral has begun commercial production at its Ghiloth plant for SWR (Soil, Waste, and Rainwater) fittings, which are vital for improving plumbing infrastructure across sectors, backed by a strong manufacturing base.
Expansion Plans
Astral’s expansion plans are progressing significantly, with key developments in its manufacturing and product lines. The Hyderabad plant, initially focused on water tanks, has now begun pipe production, with a capacity of 21,000 metric tons. Additional machines are expected in Q4. The Ghiloth plant expansion for fittings has completed.
Astral is also venturing into the OPVC business, having installed its first OPVC machine, with two more expected by Q3. The Kanpur plant is under construction, with trials scheduled for Q4. Astral is also expanding its PTMT product range and infrastructure pipe capacity, alongside increasing its valve division offerings.
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Margins Updates
Despite challenges such as the extended monsoon affecting construction and agriculture, Astral has maintained strong EBITDA margins between 16-18% and preserved market share. The company’s growth in the Bathware division has been impressive, with a 63% increase in Q2 sales.
The adhesives business has also grown, though slightly impacted by the rain in Q2, and is expected to recover in the latter half of the fiscal year. With ongoing expansions, Astral is well-positioned to maintain its market strength and drive further growth.
Areas Expected to Grow
In 1H FY25, the company spent Rs. 282 crores on capex and expects the full-year spend to align with the Rs. 350-crore guidance, with Hyderabad operational and Kanpur contributing. Paint revenue for 1H FY25 was Rs. 91 crores, with full-year projections of Rs. 210–220 crores potentially exceeding expectations as four states ramp up operations.
The OPVC segment has a significant market opportunity, targeting over Rs. 100 crores in the first full operational year, with investments in three strategically placed machines to enhance logistics and competitiveness. Management remains optimistic about achieving higher-than-expected outcomes.
Written By Fazal Ul Vahab C H
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