Supreme Industries
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Supreme Industries is navigating a complex landscape marked by recent PVC price volatility, which has led to destocking and volume declines. However, management remains optimistic, projecting a recovery in demand as channel inventories normalize and PVC prices stabilize, supported by a favorable regulatory environment with the introduction of a Minimum Import Price on PVC. The company is committed to aggressive capacity expansion, with a planned capex of INR 10 billion for FY27, focusing on high-growth segments such as gas piping and uPVC windows. This strategic focus, combined with a robust distribution network and a healthy balance sheet, underpins Vista's forecast of moderate revenue growth and stable margins. While the industry outlook remains positive, driven by ongoing infrastructure projects and improving pricing power, potential headwinds include the volatility of raw material prices and competitive pressures. Over the next 12-24 months, key opportunities lie in scaling exports and capitalizing on new product launches, while watchpoints include the execution risks associated with ambitious growth plans and the impact of external market conditions on profitability
Why We Like This Stock
- Management's optimistic outlook for volume growth, targeting 15-17% in the plastic piping division, indicates potential for recovery
- The introduction of a Minimum Import Price on PVC is expected to stabilize prices and support demand recovery
- Aggressive capacity expansion plans and a focus on high-margin products position the company for long-term growth
Things To Watch Out For
- Volatility in PVC prices poses a risk to cost structures and profitability if not managed effectively
- Short-term demand challenges due to inventory destocking and competitive pressures could impact revenue growth
- Execution risks associated with ambitious capex plans and market conditions may hinder achieving growth targets
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 10,134 | 10,446 | 11,218 | 11,078 | 12,547 |
| Profit Before Tax (Cr.) | 1,357 | 1,189 | 1,242 | 1,286 | 1,429 |
| PBT Margin | 13.4% | 11.4% | 1107.1% | 11.6% | 11.4% |
| Net Profit (Cr.) | 1,038 | 914 | 954 | 990 | 1,098 |
| Earnings Per Share | 94.0 | 82.9 | 86.5 | 89.4 | 99.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ▼ Sell | 3,150 | 29-Jul-2026 |
| Elara Capital | ► Accumulate | 4,200 | 28-Apr-2026 |
| HDFC Securities | ► Add | 3,870 | 28-Apr-2026 |
| ICICI Securities | ▲ Buy | 3,938 | 29-Jul-2026 |
| IDBI Capital | ▲ Buy | 3,936 | 29-Jul-2026 |
| JMFinancials | ▲ Buy | 4,000 | 29-Jul-2026 |
| JPMorgan | ▲ Buy | 4,050 | 03-Jun-2026 |
| Jeffries | ▲ Buy | 4,430 | 28-Apr-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 |
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.