Supreme Industries has been given a "Buy" rating by Sharekhan, with a target price of Rs 5,700.
The company's Q2 FY2025 earnings were negatively impacted by a significant decrease in PVC prices, weak demand in the infrastructure sector, and prolonged monsoon conditions.
However, the stabilization of PVC prices at lower levels and expected growth in the housing, agriculture, and infrastructure sectors are predicted to improve performance in the second half of the fiscal year.
Management has projected an overall volume growth of 14-15% year-on-year, with plastic piping volume growth expected to be 16-18% for FY2025.
The consolidated operating profit margin guidance is set at 14.5-15.25%.
The recent decline in stock value due to falling PVC prices is seen as a favorable opportunity for investors.