Buy Supreme Industries; target of Rs 4850: Motilal Oswal

BUY

Motilal Oswal's research report on Supreme Industries

Supreme Industries (SI) reported muted operating performance (EBITDA down 7% YoY), led by volatile PVC prices, a lower VAP mix, and weak demand (due to extended monsoon). Despite this, pipes volume grew ~17% YoY in 2Q, with piping volume growth guidance maintained at ~15 17% for FY26. Management has also maintained its overall volume growth for FY26 at 12-14% YoY, driven by a positive demand outlook from the housing/plumbing and agriculture segments, expected stabilization of prices (with the implementation of ADD), and the addition of Wavin capacity (~71,000MTPA).

Outlook

We largely maintain our FY26/FY27/FY28 earnings estimate and reiterate BUY, valuing the stock at 45x FY27E EPS to arrive at our TP of INR4,850.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Supreme Industries_28102025_Motilal Oswal