Supreme Industries Ltd: Weak volumes; MIP, BCD +ve for pricing/margin stability; industry growth revival required to turn constructive

Research evidence excerpt

Supreme Industries Ltd: Weak volumes; MIP, BCD +ve for pricing/margin stability; industry growth revival required to turn constructive

J P M O R G A N Asia Pacific Equity Research

28 July 2026

Supreme Industries Ltd

Weak volumes; MIP, BCD +ve for pricing/margin Neutral

stability; industry growth revival required to turn SUPI.NS, SI IN

constructive Price (28 Jul 26):Rs3,395.40

Price Target (Mar-27):Rs3,450.00

Supreme’s weak pipe volume print (down 15% yoy) while below street India Industrials, Electric Utilities,

expectations, is understandable given the unprecedented volatility in PVC prices and Infrastructure Sectors

during 1Q (see figure 1) and likely higher channel inventory levels heading into the Rishabh Gupta AC

quarter. With BCD on PVC reinstated and MIP on PVC introduced, the industry (91-22) 6157-3429

hopefully sees price/margin stability going forward and gives the channel comfort rishabh.x.gupta@jpmorgan.com

in maintaining inventory levels - which is why we see limited downside risk to the Atul Tiwari

stock from here. However, price stability also helps the relatively weaker players (91-22) 6157-3582

compete (from whom Supreme has been gaining market share), and therefore we atul.tiwari@jpmorgan.com

believe broader end-market demand trends need to improve for us to get Muskan Agarwal

(91-22) 6157-3226

constructive on the stock. Stay Neutral with unchanged TP of Rs3,450 and muskan.x3.agarwal@jpmchase.com

unchanged FY28E consol EPS of Rs99 (cut during our June downgrade/5% below J.P. Morgan India Private Limited, J.P. Morgan

consensus). Continue to prefer ASTRA>SI. Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

• Piping segment performance (-): Volumes declined 15% yoy (an Style Exposure