Supreme Industries, Astral, Prince Pipes: MOFSL initiates coverage, sets target prices
MOFSL has initiated coverage on Supreme Industries, Astral, and Prince Pipes, highlighting their promising market share gains and healthy earnings potential in India's plastic piping industry.
- Jun 27, 2025,
- Updated Jun 27, 2025 11:26 AM IST
Motilal Oswal Financial Services (MOFSL) has recently initiated coverage on three prominent companies in the Indian plastic piping industry: Supreme Industries, Astral, and Prince Pipes. These companies are considered key players due to their established market presence and potential for further growth.
According to MOFSL, the Indian plastic pipes industry is on track to grow at approximately 14 per cent CAGR from FY24-27, reaching an estimated Rs 805 billion by FY27. This growth is largely driven by strong demand in housing, irrigation, water supply, and sanitation sectors. Replacement demand also plays a significant role, as organised players are set to gain more market share, supported by anti-dumping duties and sector consolidation. This trend is expected to continue, providing a robust foundation for future expansion.
MOFSL notes that "SI, ASTRA, and PRINCPIP are some of the key players operating in the Indian plastic piping space. We believe these companies are well-positioned to gain further market share and deliver healthy earnings." The report highlights these companies' strategic advantages and market positioning, which are crucial for sustaining growth.
Supreme Industries, a significant player in India's plastic sector, operates 25 advanced plants with a capacity of 1,091,000 MTPA. MOFSL projects its revenue, EBITDA, and adjusted PAT to grow at a CAGR of 14 per cent, 20 per cent, and 23 per cent, respectively, over FY25-FY28, driven by healthy volume growth and an improving margin profile. Such growth is indicative of the company's strong operational capabilities.
MOFSL has set a target price of Rs 5,400 for Supreme Industries, reflecting a 22 per cent premium over its five-year average one-year forward P/E. The company's diverse product portfolio, spanning pipes, fittings, bathware, and more, is anticipated to support this growth trajectory.
Astral, another key player, has a strategic focus on innovative products and has expanded into five key segments including pipes, water tanks, adhesives, bathware, and paints. MOFSL has given Astral a target price of Rs 1,800, expecting a 20 per cent upside due to its strong export and capacity expansion strategies. This strategic diversification is expected to enhance Astral's market position significantly.
Prince Pipes operates seven plants and is set to benefit from India's burgeoning real estate sector, particularly due to its strategic expansion plans in East India. MOFSL's coverage suggests a target price of Rs 500 for Prince Pipes, with a significant 46 per cent upside, highlighting its potential for robust growth. The company's focus on premium product launches further strengthens its competitive edge.
MOFSL also emphasises the broader market dynamics, stating that "players are diversifying into high-growth adjacent categories like water tanks, bathware, and industrial components." Government schemes such as Jal Jeevan Mission and Smart Cities initiatives are expected to further drive demand. These initiatives are pivotal in shaping the future landscape of the industry.
Despite the positive outlook, MOFSL identifies key risks for these companies, including fluctuations in polymer prices, real-estate market stagnation, competitive pressures, and potential brand dilution. These factors could impact the companies' growth trajectories, necessitating careful strategic planning.
MOFSL's analysis concludes with a strong Buy rating for the three companies, supported by their strategic initiatives and the favourable market conditions. The firms' ability to capitalise on emerging opportunities in the sector remains a focal point for potential investors.
The coverage by MOFSL highlights the promising future of the Indian plastic piping industry and the role these companies will play in shaping its landscape, offering insights into potential investment opportunities. This detailed analysis underscores the sector's dynamic nature and growth potential.
Motilal Oswal Financial Services (MOFSL) has recently initiated coverage on three prominent companies in the Indian plastic piping industry: Supreme Industries, Astral, and Prince Pipes. These companies are considered key players due to their established market presence and potential for further growth.
According to MOFSL, the Indian plastic pipes industry is on track to grow at approximately 14 per cent CAGR from FY24-27, reaching an estimated Rs 805 billion by FY27. This growth is largely driven by strong demand in housing, irrigation, water supply, and sanitation sectors. Replacement demand also plays a significant role, as organised players are set to gain more market share, supported by anti-dumping duties and sector consolidation. This trend is expected to continue, providing a robust foundation for future expansion.
MOFSL notes that "SI, ASTRA, and PRINCPIP are some of the key players operating in the Indian plastic piping space. We believe these companies are well-positioned to gain further market share and deliver healthy earnings." The report highlights these companies' strategic advantages and market positioning, which are crucial for sustaining growth.
Supreme Industries, a significant player in India's plastic sector, operates 25 advanced plants with a capacity of 1,091,000 MTPA. MOFSL projects its revenue, EBITDA, and adjusted PAT to grow at a CAGR of 14 per cent, 20 per cent, and 23 per cent, respectively, over FY25-FY28, driven by healthy volume growth and an improving margin profile. Such growth is indicative of the company's strong operational capabilities.
MOFSL has set a target price of Rs 5,400 for Supreme Industries, reflecting a 22 per cent premium over its five-year average one-year forward P/E. The company's diverse product portfolio, spanning pipes, fittings, bathware, and more, is anticipated to support this growth trajectory.
Astral, another key player, has a strategic focus on innovative products and has expanded into five key segments including pipes, water tanks, adhesives, bathware, and paints. MOFSL has given Astral a target price of Rs 1,800, expecting a 20 per cent upside due to its strong export and capacity expansion strategies. This strategic diversification is expected to enhance Astral's market position significantly.
Prince Pipes operates seven plants and is set to benefit from India's burgeoning real estate sector, particularly due to its strategic expansion plans in East India. MOFSL's coverage suggests a target price of Rs 500 for Prince Pipes, with a significant 46 per cent upside, highlighting its potential for robust growth. The company's focus on premium product launches further strengthens its competitive edge.
MOFSL also emphasises the broader market dynamics, stating that "players are diversifying into high-growth adjacent categories like water tanks, bathware, and industrial components." Government schemes such as Jal Jeevan Mission and Smart Cities initiatives are expected to further drive demand. These initiatives are pivotal in shaping the future landscape of the industry.
Despite the positive outlook, MOFSL identifies key risks for these companies, including fluctuations in polymer prices, real-estate market stagnation, competitive pressures, and potential brand dilution. These factors could impact the companies' growth trajectories, necessitating careful strategic planning.
MOFSL's analysis concludes with a strong Buy rating for the three companies, supported by their strategic initiatives and the favourable market conditions. The firms' ability to capitalise on emerging opportunities in the sector remains a focal point for potential investors.
The coverage by MOFSL highlights the promising future of the Indian plastic piping industry and the role these companies will play in shaping its landscape, offering insights into potential investment opportunities. This detailed analysis underscores the sector's dynamic nature and growth potential.