Supreme Petrochem has been given an "Accumulate" rating by KR Choksey, with a target price of Rs 877 per share. The company's top-line growth exceeded expectations due to improved price realization, while profitability remained in line with estimates, supported by stable pricing for Styrene Monomer.
The firm expects strong domestic demand, particularly in the OEM sector, as well as expansions in EPS capacity and a new Mass ABS project to drive future growth. However, KR Choksey has adjusted its FY25E and FY26E estimates downward by 2.1% and 0.9% respectively, due to a reduction in volume guidance.
The target price reflects a P/E multiple of 27.0x on the FY26E EPS of INR 32.5, slightly lower than the previous target of INR 903 per share, which is attributed to export pressures caused by geopolitical uncertainties.