The shares of the mid-cap company, which is India’s largest plastic processor and offers a diverse range of products, including plastic piping systems, moulded furniture, protective packaging, and industrial and material handling products, are in focus following an analyst’s viewpoint on the stock after its Q2 results showed a decline.
With a market capitalization of 48,460.12 Crores on Tuesday, the shares of Supreme Industries Ltd declined by upto 4.7 percent, reaching a low of Rs. 3810.20 compared to its previous close of Rs. 4000.35.
What Happened
Supreme Industries Ltd is engaged in being India’s largest plastic processor, with a diverse range of products is in focus following the analyst’s viewpoint on the stock after its Q2 results showed a decline.
Its Revenue from operations rose by 5 percent YoY from Rs. 2,273 Crores in Q2FY25 to Rs. 2,394 Crores in Q2FY26, and it declined by 8 percent QoQ from Rs. 2,609 Crores in Q1FY26 to Rs. 2,394 Crores in Q2FY26.
Its Net Profit YoY declined by 20 percent from Rs. 207 Crores in Q2FY25 to Rs. 165 Crores in Q2FY26, and it percent by 18 percent QoQ from Rs. 202 crores in Q1FY26 to Rs. 165 Crores in Q2FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 12.97, compared to Rs. 15.93 in the previous quarter.
Along with it, the company has approved an interim dividend of 550% (Rs. 11 per share) on 127,026,870 equity shares of Rs. 2 each. The record date for determining shareholder eligibility for this dividend is set for Monday, 3rd November 2025.
Analyst Viewpoint on the stock after results
JM Financial
JM Financial has maintained its ‘Buy’ rating on the stock, setting a revised target price of Rs 5,180 per share. This suggests an upside potential of over 29% from the stock’s previous closing price. The brokerage noted that the company delivered an operating performance in line with expectations.
Jefferies
Jefferies has maintained its ‘Buy’ rating on the stock, setting a target price of Rs 5,100 per share. This suggests an upside potential of over 27% from the stock’s previous closing price. The brokerage sees strong pipe volume growth at +17%, though margins missed forecasts. Management has maintained its FY26 outlook of +15-16% growth and an operating margin target of 14.5%-15%, with expectations of benefits from potential anti-dumping duties. Supreme Industries is viewed as a play on housing, capex, and agricultural demand.
CLSA
CLSA maintained a ‘Hold’ rating on the stock, lowering its target price to Rs 4,275, implying an upside of about 7% from the previous close of Rs 4,000.90. The brokerage noted weak Q2 results, with EBITDA down 7% YoY, though volume rose 12% YoY, aided by the Wavin acquisition.
The company expects FY26 volume growth of 12%-14% and an EBITDA margin of 14.5%-15.5%, with potential demand recovery in H2 driven by agriculture and infrastructure, though margins may remain challenging.
Yes Securities
Yes Securities maintained a ‘Neutral’ rating on Supreme Industries, with a target price of Rs 4,083, indicating an upside of over 2% from the stock’s previous close. The brokerage noted that while the company delivered better-than-expected volume growth, margins fell short of expectations.
PL Capital
PL Capital upgraded the stock from ‘Accumulate’ to ‘Buy’ following a recent price correction. The brokerage highlighted that volume growth of 11.8% exceeded its estimate of 6.8%. Supreme Industries anticipates H2 FY26 to outperform H1 FY26, supported by the potential imposition of ADD on PVC resin, stronger agricultural demand, and increased government spending.
Company Overview & Others
Supreme Industries Ltd is India’s largest plastic processing company, established in 1942. It manufactures a wide variety of plastic products across eight business divisions, including plastic piping systems, molded furniture, industrial products, and protective and performance packaging. The company has a pan-India presence with numerous manufacturing plants and exports its products to many countries.
It offers a wide range of products catering to both consumer and industrial markets, including plastic piping systems, molded furniture, industrial molded products, protective packaging, material handling products, performance films, and composites. They also provide solutions for the automotive and appliance industries.
Written by Sridhar J
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