It reiterated its “buy” ratings on Prince Pipes, Astral Ltd. and Supreme Industries Ltd., with target prices of ₹440, ₹1,650 and ₹5,350 apiece, an upside of 33.9%, 18.4% and 17.8%, respectively.
With the Directorate General of Trade Remedies’ (DGTR) recommendation on implementing anti-dumping duty (ADD) and PVC pipes stabilisting at bottom levels, a gradual price uptick is expected, the brokerage said.Also, with an improving demand environment, these factors are set to drive a gradual rebound for the sector from the second quarter onwards.
Motilal Oswal said that despite a weak first quarter for the sector, the companies remain confident of delivering double-digit volume growth for the year. It is backed by a strong recovery in July to August, stable PVC prices, expected anti-dumping duty-led support and an important outlook, it said.
The DGTR has recommended anti-dumping duty on key exporters from seven countries, including China and the US, which contribute to a large share of India’s imports. With the domestic PVC capacity at 1.8mMT compared to demand of 4.7mMT, India remains structurally deficit, the brokerage said. However, planned expansions of 2.5mMT by the calendar year 2027 from major conglomerates are set to gradually substitute imports, it added.
The pipe manufacturers would be the key beneficiaries as this shift will enhance supply reliability, reduce raw material volatility, lower working capital requirements and safeguard margins, the brokerage said.
The PVC pipes sector posted a 3% revenue decline to ₹5,870 crore in the first quarter, driven by 8% lower realisations despite 3% volume growth. Its aggregate EBITDA declined 27% to ₹660 crore, blended EBIT/kg dropped 41% to 900 crore, with heavy inventory losses, Motilal Oswal said.
Management of the companies expect this to be the last quarter of such losses, it said.
Motilal Oswal said it expects the PVC pipes industry to witness a gradual recovery from the second quarter, on a low base, with a further pick-up in momentum from the second half of FY26.
| Company | Buy | Hold | Sell |
| Prince Pipes | 10 | 3 | 3 |
| Supreme Industries | 14 | 10 | 3 |
| Astral | 20 | 7 | 2 |
Shares of Prince Pipes, Astral and Supreme Industries were trading mixed on Thursday, with Prince Pipes surging 9% to hit an intraday high of 358 apiece. The stock was trading 6.4% up at ₹349.55 apiece around 10.15 am. It has declined 18.6% this year, so far.
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