Prince Pipes, Supreme Ind: Plastic pipe stocks rise up to 9%; here's why

Prince Pipes, Astral, Supreme Industries, and other plastic pipe stocks jumped up to 8.8 per cent in trade; check reasons, recommendations

Shares of plastic pipe companies climbed as much as 8.8 per cent on Thursday, August 21, 2025, on the BSE, buoyed by an improved growth outlook.

 

At 9:38 AM, individually, Prince Pipes and Fittings' share price was trading 6.95 per cent higher, Supreme Industries was up 1.34 per cent, Finolex Industries was up 1.28 per cent, and Apollo Pipes was up 1.68 per cent. However, Astral was flat. In comparison, the Sensex was 0.19 per cent higher at 82,013.92.

 

Motilal Oswal reckons that after a challenging FY25 and a subdued start to FY26, the domestic pipes sector appears to be at the cusp of recovery. With the Directorate General of Trade Remedies' (DGTR) recommendation on implementing Anti-Dumping Duty (ADD) and PVC prices stabilising at bottom levels, a gradual price uptick is expected.  CATCH STOCK MARKET UPDATES TODAY LIVE 

 

"Coupled with an improving demand environment, these factors are set to drive a gradual rebound from Q2FY26 onwards," the brokerage noted. It added: With a further pickup in momentum from H2FY26.

Why is the brokerage bullish on plastic pipe companies?

The brokerage is upbeat as plastic pipe companies remain confident of delivering double-digit volume growth for the year, backed by a strong recovery in Jul-Aug 2025. 

 

Supreme Industries expects total volume growth of 14-15 per cent for FY26, led by plastic piping systems at a higher 15-17 per cent, with Earnings before interest, tax, depreciation and amortisation (Ebitda) margin in the 14.5–15.5 per cent range. Outlook is expected to turn positive, with industry growth pegged at 9-10 per cent, supported by rural demand recovery and steady momentum in urban housing, infrastructure, and real estate.

 

Similarly, Astral's management anticipates volumes improving sharply over 30 per cent year-on-year (Y-o-Y)  from July 2025, and management expects lower double-digit volume growth for FY26.   ALSO READ | HDB Financial shares rise as Motilal Oswal initiates coverage; check upside 

Prince Pipes has guided for a demand recovery from Q2FY26, supported by strong volumes in July 2025, with margins expected to improve sequentially and reach 12 per cent by Q4.

 

Apollo Pipes' management has guided for double-digit volume growth in FY26, low-to-mid double-digit, with potential upside if demand strengthens in Q2. 

 

Finolex Industries expects at least high single-digit and potentially double-digit volume growth for FY26. 

Investment strategy 

Motilal Oswal has reiterated its 'Buy' rating on Supreme Industries, Astral, and Prince Pipes with targets of ₹5,350 per share, ₹1,650, and ₹440, respectively.