Jefferies has maintained its ‘Buy’ rating on Supreme Industries with a target price of ₹6,450, following positive management commentary. The company expects a 20%+ volume recovery in the second half of FY25, driven by channel restocking, seasonal demand, and new capacity additions. Supreme Industries plans to expand its pipes capacity by 13% YoY to 835,000 MT by March 2025, positioning it for further market share gains.
PVC prices have risen by 5% since October, which should support revenue growth. Jefferies views Supreme Industries as a strong play on the plumbing, agriculture, and infrastructure sectors. The company’s diversified portfolio, combined with its aggressive capacity expansion, is expected to drive a 22% EPS CAGR over FY24-FY27.
With favorable market conditions and strategic investments, Supreme Industries is poised for strong growth, making it an attractive choice for investors seeking exposure to the building materials sector.
