Supreme Industries' valuation has become a concern, causing analysts to downgrade it from Hold to Sell. With increased P/E and P/BV ratios pushing towards overvalued levels at ₹3,500.35, investors may want to reconsider their holdings.
Supreme Industries Limited
SUPREMEINDPrice History
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Supreme Industries experienced a 12% increase in volume and a 7% rise in revenue during FY26, yet the profit after tax decreased by 1%. To address this issue and boost production, the company has announced plans to invest ₹1,000 crore for expanding capacity to 1.35 million MT per annum.
UBS has revised its outlook on Supreme Industries from a 'sell' to 'neutral', reflecting confidence in the company due to stable PVC prices, positive impact of JJM 2.0, and enhanced growth projections for FY27-28. The new target price is set at Rs 4,000.
Supreme Industries is set to invest around INR 1,000 crores in capital expenditure for the fiscal year 2027, with an aim for significant growth, targeting a range between 12-17% in volume expansion as part of its strategic plan.
Supreme Industries saw a significant jump in Q4 profits for March 2026, setting new records for revenue and earnings. This increase was driven by stronger sales, enhanced margins, and an improvement in EPS, leading to increased optimism among investors.
Supreme Industries announces a significant investment of INR 1,000 crores to expand its capacity by 110,000 MT, with a primary focus on increasing production in the piping sector by 100,000 MT.
Supreme Industries anticipates enhanced performance due to a robust financial position (zero debt, strong balance sheet), tech leadership, and expansion in manufacturing. Their optimism stems from the potential growth of their diverse business, fueled by India's economic progress driven by consumer spending and infrastructure development.
Supreme Industries' share price dipped, despite an uptick in margins during Q4, primarily due to a shortfall in predicted volume sales for the same period.
Supreme Industries' Q4 results show a 11.8% increase in plastic pipe volume, which is below their anticipated growth of 15-17%. Despite this, the company remains optimistic about stronger performance in the upcoming fiscal year 2027.
Supreme Industries reports a significant 47.5% year-over-year increase in Q4 net profit, reaching Rs 434 crore. Revenue also climbed by 16.5%, ending at Rs 3,528 crore. As a result, the company announces a final dividend of Rs 25/share, bringing the total payout for FY26 to Rs 36/share.
Supreme Industries has reported a 12% increase in volumes for its fiscal year 2026, though this figure is slightly below the initial expectations.
Supreme Industries is projected to boost its Q4 profits by approximately 23%, reaching INR 362 crores, according to predictions. This growth is also expected in net sales (up 22%) and EBITDA (increasing by about 36.3%).
Today, GMDC experienced a significant rise of 20%, leading the market's advancements. Notably, Adani Power, Sonata Software, and YES Bank also saw gains. On the flip side, Supreme Industries and Tejas Networks faced losses, with declines of 4.5% and 3.7% respectively.
Supreme Industries sees a boost due to surging PVC prices worldwide, with eased raw material costs thanks to temporary customs duty exemptions on petrochemicals. The company's share price stands at ₹3,629, giving it a market cap of ₹46,098.1 Cr, marking a 16% increase year-over-year.
Despite the recent duty relief, Supreme Industries continues to struggle due to ongoing global supply chain issues. These disruptions are negatively impacting their operations.