Astral (NSE: ASTRAL) Shares Tumble 10% to ₹1,339 After Board Approves Chemicals Demerger, Analysts Flag Growth Concerns

Astral shares took a sharp hit on June 29, 2026. Shares of Astral dropped 6.5% to an early market low of ₹1,390 after the opening bell on Monday, June 29, compared to the previous close of ₹1,486.90, according to NSE data. The stock later touched a session low of ₹1,339. The selloff followed board approval of a landmark chemicals demerger. Analysts flagged near-term uncertainty even while maintaining long-term Buy ratings on the stock.

What the Board Approved on June 25, 2026?

Astral Limited’s board approved a composite scheme to demerge its chemicals business into Astral Chemie Limited and amalgamate Al-Aziz Plastics Private Limited, sanctioned on June 25, 2026, with a 1:1 share exchange ratio for shareholders. Key scheme details:

• Demerged entity: Astral Chemie Limited (formerly Astral Coatings)
• Share ratio: 1 Astral Chemie share for every 1 Astral share held
• Chemicals FY26 turnover: ₹1,266 crore (21% of total standalone revenue)
• Total Astral standalone turnover (FY26): ₹5,907.6 crore
• Al-Aziz Plastics turnover: ₹37 crore (to be merged into Astral)
• Regulatory approvals needed: NCLT Ahmedabad Bench, SEBI, and stock exchanges
• Timeline to completion: 9 to 12 months

Once separated, Astral Chemie would rank among India’s largest listed pure-play chemicals businesses.

Why the Stock Fell: Analyst Concerns?

Experts predict the demerger can potentially impact the company’s growth prospects of the still relatively sub-scale remaining Paints & Adhesives segment.

The demerger might create a near-term overhang for the stock as investors decide on the multiples for each segment, said Equirus Securities, adding that valuations will depend on the pace of growth and profitability of each business.

Post-demerger, company retains:

• Pipes and fittings (plumbing core)
• Bathware
• CPVC Resin Manufacturing

The chemicals business, adhesives, sealants, paints, and speciality chemicals moves entirely to Astral Chemie.

Astral Stock Data: June 29, 2026

As of June 29, 2026, Astral’s share price traded between ₹1,385 and ₹1,423, with a previous close of ₹1,486.90 and the 52-week range spanning ₹1,263.70 to ₹1,768.70.

Key metrics at a glance:

• Day low: ₹1,339
• Previous close: ₹1,486.90
• 52-week high: ₹1,768.70
• 52-week low: ₹1,263.70
• Market cap (June 29): ₹364.10 billion
• Dividend yield: 0.24%
• Next earnings date: August 7, 2026

Peer plumbing and building materials stocks such as Supreme Industries and Finolex Industries did not see comparable intraday moves on June 29.

What Analysts Say?

ICICI Securities retained its Buy rating and revised its SoTP-based March 2027 target price to ₹1,738, stating the demerger will likely enable both businesses to grow strongly with enhanced focus on efficient capital deployment, with shareholders receiving Astral Chemie shares in a 1:1 ratio by the end of FY27.

The average 12-month price target across 23 Buy-rated analysts stands at ₹1,763.62, representing a 30.44% upside from current levels.

MOFSL reiterated its Buy rating but reduced its target to ₹1,710, while Elara maintained Accumulate with a target of ₹1,660 on 50 times March 2028 estimated P/E.

Bottom Line:

Astral’s chemicals demerger is a strategic restructuring, not a distress signal. With ₹1,266 crore in chemicals revenue ring-fenced into Astral Chemie, both entities gain independent capital pathways.

The stock’s drop to ₹1,339 reflects short-term market uncertainty, but the broad analyst consensus of Buy and a ₹1,763 average target signals confidence in the longer-term structure.

Disclaimer:

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