JM Fin bullish on PVC pipe cos; initiates coverage on Supreme Ind, Astral

JM Financial has turned bullish on plastic pipes companies, citing a structural shift from fragmented, agri-focused markets to a consolidated, organised ecosystem addressing water supply, sanitation, plumbing, and industrial applications. The brokerage has initiated coverage on Astral and Supreme Industries, while re-initiating coverage on Prince Pipes & Fittings. 

 

On Astral and Supreme Industries, the brokerage has given the target of ₹1,600 per share and ₹5,400 with an ‘Add’ and ‘Buy’ rating, respectively. On Prince Pipes, JM Financial has ‘Add’ with a target of ₹360. 

Here’s why JM Financial is optimistic about plastic pipe companies

Gradual volume growth expected ahead

The plastic pipes industry has seen a structural shift from a fragmented, agriculture-focused market to an organised sector addressing diverse end-uses such as water supply, sanitation, plumbing, and industrial applications, according to the brokerage. 

 

In FY25, the plastic pipes industry witnessed multiple headwinds, including subdued infrastructure spending, liquidity challenges, and heightened volatility in PVC prices. However, analysts expect channel restocking to provide near-term support to volume growth, while a gradual recovery in PVC prices should further aid the industry’s momentum. 

 

Over the medium to long term, structural demand drivers remain firmly in place. Rising agricultural requirements and government-led infrastructure programmes—such as Jal Jeevan Mission (JJM), Swachh Bharat Abhiyan, and Housing for All—are likely to accelerate the adoption of plastic piping systems and drive sustained growth. 

Improving PVC prices

PVC prices in India have faced a sharp decline since Q3FY22, pressured by sluggish global construction activity (notably in China and developed markets) and a supply glut from key exporters such as China, South Korea, and Taiwan, which resorted to dumping at lower prices.

 

While PVC prices historically grew at a 2 per cent compound annual growth rate (CAGR) over 25 years, the segment instead recorded a 4 per cent CAGR decline between FY20–25. Recently, however, signs of recovery are visible: prices have risen by ₹7 per kg over the past 4–5 months to ₹79 per kg in Sep’25, though still well below FY22 peaks.

 

With the support of the new anti-dumping duty announcement, analysts believe PVC prices have bottomed out, paving the way for a gradual recovery. Stabilisation should help restore distributor confidence, ease inventory challenges, and aid margin recovery for organised players in the plastic pipes sector. 

PVC prices to be supported by regulatory tailwinds

In India, forthcoming regulatory actions are expected to support capacity build-up and stabilise PVC prices in the near to medium term. In Aug’25, the Directorate General of Trade Remedies (DGTR) recommended an anti-dumping duty on suspension-grade PVC resin imports from seven countries, including China and the US, which together account for a large share of India’s imports.

 

This duty, once notified by the Ministry of Finance, is expected to stem the influx of low-cost imports, protect domestic producers from unfair competition, and restore pricing power. Additionally, the potential implementation of Bureau of Indian Standards (BIS) compliance for PVC imports by Dec’25 could further restrict low-quality imports. Domestic manufacturers already meet BIS quality standards, leaving them relatively unaffected.