JPMorgan has also cut its price target on Supreme Industries to ₹3,450 from ₹4,050 earlier. The revised price target is nearly the same level at which the stock had closed last Thursday.
The downgrade comes on the lines of Supreme’s peer Astral announcing the demerger of its chemicals business into a separate entity. Shares of Astral are down 10% on Monday after the announcement, with JPMorgan having downgraded the stock as well.
The brokerage goes on to warn that Astral’s higher growth focus on the pipes business poses a risk for Supreme Industries, and could well be a growth drag, as it makes it difficult for the company to underwrite the margin improvement.
For the March quarter, Supreme Industries’ EBITDA margin improved to 17.66% from 12.25% in the December quarter and compared to 13.75% during the same quarter last year.
Given this uncertainty, and the fact that the domestic PVC prices are likely to correct further in the near-term, which could further inventory losses and channel de-stocking, particularly at a time when both Astral and Supreme will have a high volume base in the second quarter, JPMorgan advises investors to stay on the sidelines for both of these stocks.
Structurally too, it prefers Astral over Supreme Industries, as it does not view the demerger announcement as a major negative, but awaits a better entry point for the stock, once the PVC price volatility settles.
30 analysts have coverage on Supreme Industries, of which 21 have a “buy” rating, five say “hold”, and four have a “sell” rating.
Shares of Supreme Industries are trading 7% lower on Monday at ₹3,184.4. This is the second day of losses for the stock, having declined another 4% last Thursday as well. The stock is also down 10% in the last one month.
First Published: Jun 29, 2026 1:03 PM IST
