Supreme Industries shares jump 4%; ICICI Securities raises target price
Supreme Industries saw a significant recovery in pipe volumes in the second quarter of FY27 after a 15.4 per cent year-on-year decline in the first quarter.
- Sep 7, 2026,
- Updated Sep 7, 2026 12:21 PM IST
Supreme Industries Ltd jumped 4 per cent in Monday's trade amid an upward revision in its target price by ICICI Securities. Citing healthy demand momentum in the pipes business, improving PVC prices and steady margins, the domestic brokerage retained its 'Buy' rating on Supreme Industries, raising its target price to Rs 4,035 apiece from Rs 3,938 apiece.
The brokerage's latest note follows a meeting with the company's management that expected agricultural demand to pick up from September end as PVC prices stabilise.
Supreme Industries shares jumped 4.13 per cent in Monday's trade to hit a high of Rs 3,592.75 apiece on BSE over its previous close of Rs 3,450.15. The stock had opened at Rs 3,469.95 against its previous close of Rs 3,450.15. The stock has hit a 52-week high of Rs 4,649.95 and a low of Rs 3,141.55, BSE data showed.
Pipe demand picks up
Supreme Industries saw a significant recovery in pipe volumes in the second quarter of FY27 after a 15.4 per cent year-on-year decline in the first quarter. The brokerage said PVC prices have started improving after the reimposition of Basic Customs Duty (BCD) on July 16 and the introduction of a Minimum Import Price (MIP) on July 24.
PVC prices rose 16.3 per cent in the second quarter of FY27 so far, prompting distributors to restock after substantial destocking in the first quarter. Management expects to achieve year-on-year pipe volume growth in the first half of FY27, implying at least 19 per cent growth in the second quarter, according to the brokerage.
ICICI Securities expects agricultural demand, which was deferred in the first quarter due to volatility in PVC prices, to recover by the end of September as prices stabilise. It expects Supreme Industries' pipe volumes to grow at 10 per cent annually between FY26 and FY28.
Margins expected to stay healthy
The brokerage said Supreme Industries has near-term margin tailwinds as PVC prices have found a floor following the MIP, which could help normalise channel inventory levels. It expects the absence of inventory losses and healthier channel inventories to support profitability.
The company has guided for a blended operating profit margin of 14-14.5 per cent in FY27, while ICICI Securities has modelled margins of 14.7 per cent and 14.8 per cent for FY27 and FY28, respectively.
Target price
ICICI Securities expects Supreme Industries to benefit from a healthy housing market, a recovery in the agricultural segment and better visibility on PVC prices following the MIP. The brokerage expects Ebitda to grow at 16.4 per cent annually and profit after tax at 20.8 per cent annually between FY26 and FY28.
The brokerage has maintained its BUY rating and rolled over its valuation to September 2027, arriving at a target price of Rs 4,035, up from its earlier target of Rs 3,938. At the report price of Rs 3,475, the revised target implied 16 per cent upside.
Supreme Industries Ltd jumped 4 per cent in Monday's trade amid an upward revision in its target price by ICICI Securities. Citing healthy demand momentum in the pipes business, improving PVC prices and steady margins, the domestic brokerage retained its 'Buy' rating on Supreme Industries, raising its target price to Rs 4,035 apiece from Rs 3,938 apiece.
The brokerage's latest note follows a meeting with the company's management that expected agricultural demand to pick up from September end as PVC prices stabilise.
Supreme Industries shares jumped 4.13 per cent in Monday's trade to hit a high of Rs 3,592.75 apiece on BSE over its previous close of Rs 3,450.15. The stock had opened at Rs 3,469.95 against its previous close of Rs 3,450.15. The stock has hit a 52-week high of Rs 4,649.95 and a low of Rs 3,141.55, BSE data showed.
Pipe demand picks up
Supreme Industries saw a significant recovery in pipe volumes in the second quarter of FY27 after a 15.4 per cent year-on-year decline in the first quarter. The brokerage said PVC prices have started improving after the reimposition of Basic Customs Duty (BCD) on July 16 and the introduction of a Minimum Import Price (MIP) on July 24.
PVC prices rose 16.3 per cent in the second quarter of FY27 so far, prompting distributors to restock after substantial destocking in the first quarter. Management expects to achieve year-on-year pipe volume growth in the first half of FY27, implying at least 19 per cent growth in the second quarter, according to the brokerage.
ICICI Securities expects agricultural demand, which was deferred in the first quarter due to volatility in PVC prices, to recover by the end of September as prices stabilise. It expects Supreme Industries' pipe volumes to grow at 10 per cent annually between FY26 and FY28.
Margins expected to stay healthy
The brokerage said Supreme Industries has near-term margin tailwinds as PVC prices have found a floor following the MIP, which could help normalise channel inventory levels. It expects the absence of inventory losses and healthier channel inventories to support profitability.
The company has guided for a blended operating profit margin of 14-14.5 per cent in FY27, while ICICI Securities has modelled margins of 14.7 per cent and 14.8 per cent for FY27 and FY28, respectively.
Target price
ICICI Securities expects Supreme Industries to benefit from a healthy housing market, a recovery in the agricultural segment and better visibility on PVC prices following the MIP. The brokerage expects Ebitda to grow at 16.4 per cent annually and profit after tax at 20.8 per cent annually between FY26 and FY28.
The brokerage has maintained its BUY rating and rolled over its valuation to September 2027, arriving at a target price of Rs 4,035, up from its earlier target of Rs 3,938. At the report price of Rs 3,475, the revised target implied 16 per cent upside.