Supreme Industries
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Supreme Industries' management has expressed a confident outlook for FY27, attributing recent volume declines to temporary factors such as PVC price volatility and channel destocking. The company is focusing on aggressive capacity expansion and product diversification, particularly in high-growth segments like gas piping and uPVC windows, which are expected to drive revenue growth. Vista's forecast reflects a moderate revenue growth outlook, with anticipated stable margins around 14%-14.5%. The recent introduction of a Minimum Import Price on PVC is expected to stabilize pricing, supporting a recovery in demand. However, risks remain, particularly from raw material price fluctuations and execution challenges in new projects. The overall industry context is favorable, with increasing infrastructure spending and urbanization trends bolstering demand for plastic piping systems. Over the next 12-24 months, key opportunities include expanding export markets and capitalizing on new product launches, while watchpoints include managing raw material costs and competitive pressures in the domestic market
Why We Like This Stock
- Management's focus on aggressive capacity expansion and product diversification is expected to drive revenue growth
- The introduction of a Minimum Import Price on PVC is likely to stabilize pricing and support demand recovery
- Strong infrastructure spending and urbanization trends provide a favorable backdrop for the company's growth
Things To Watch Out For
- Volatility in raw material prices remains a significant risk that could impact margins and profitability
- Execution challenges in new manufacturing projects could hinder the company's growth trajectory
- Intense competition and potential slowdowns in the housing market may affect market share and revenue
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 10,134 | 10,446 | 11,218 | 11,044 | 11,956 |
| Profit Before Tax (Cr.) | 1,357 | 1,189 | 1,242 | 1,260 | 1,351 |
| PBT Margin | 13.4% | 11.4% | 11.1% | 11.4% | 11.3% |
| Net Profit (Cr.) | 1,038 | 914 | 954 | 970 | 1,038 |
| Earnings Per Share | 94.0 | 82.9 | 86.5 | 87.6 | 93.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Investec | ▲ Buy | 3,860 | 17-Sep-2026 |
| ICICI Securities | ▲ Buy | 4,035 | 07-Sep-2026 |
| Axis Securities | ▲ Buy | 3,763 | 29-Jul-2026 |
| Citigroup | ▼ Sell | 3,150 | 29-Jul-2026 |
| IDBI Capital | ▲ Buy | 3,936 | 29-Jul-2026 |
| JMFinancials | ▲ Buy | 4,000 | 29-Jul-2026 |
| Kotak Securities | ▲ Buy | 3,950 | 29-Jul-2026 |
| Motilal Oswal | ► Neutral | 3,690 | 29-Jul-2026 |
| Prabhudas Liladhar | ▲ Buy | 4,610 | 29-Jul-2026 |
| JPMorgan | ▲ Buy | 4,050 | 03-Jun-2026 |
| Elara Capital | ► Accumulate | 4,200 | 28-Apr-2026 |
| HDFC Securities | ► Add | 3,870 | 28-Apr-2026 |
| Jeffries | ▲ Buy | 4,430 | 28-Apr-2026 |
Company Overview
Show Company Profile
The Supreme Industries Limited manufactures and sells plastic products in India. The company offers plastic piping systems, including uPVC pipes, injection-molded PVC and handmade fittings; polypropylene random co-polymer pipe systems; HDPE and CPVC pipe systems; inspection chambers; manholes; bath fittings and sanitaryware; roto-molded tanks and fittings; solvents; industrial piping systems; DWC pipe system; PERT pipe system; O-PVC pipe system; and fire sprinkler systems. It also provides industrial products, such as industrial components, material handling system and pallets, roto moulded crates, pallets, and garbage bins and composite LPG cylinders. In addition, the company provides packaging products comprising flexible packaging film products, protective packaging products, and cross-laminated film and products; and furniture. Further, the company offers fabricated and customised windows from uPVC profile. It also exports its products. The Supreme Industries Limited was incorporated in 1942 and is based in Mumbai, India.