Are pipe companies a good investment idea?

On a year-to-date (YTD) basis, Astral Poly Technik has risen 2.30 per cent, while Finolex and Supreme Industries have fallen 23 per cent and 0.24 per cent, respectively.

Shares of pipe companies Supreme Industries, Astral Poly Technik and Finolex Industries rose on Tuesday after the global brokerage firm Jefferies initiated the coverage on them with a 'buy' rating. 

Shares of Astral Poly Technik climbed as much as 1.75 in the intraday trade while those of Supreme Industries and Finolex Industries surged 2.60 per cent and 1.68 per cent, respectively.  

"We believe the Indian pipes industry is well-poised for a multi-year dream run, bolstered by the government's impetus for agriculture, housing & infrastructure, coupled with a fillip to organized volumes, courtesy GST and E-Way Bill. Also, buttressing growth is