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Stock to Buy: Global brokerages — JP Morgan, CLSA, and Jefferies — have released their latest reports on Supreme Industries Ltd, India’s leading plastic products manufacturer, following its second-quarter earnings. While the company’s quarterly performance was slightly below expectations, most analysts continue to believe that the long-term growth story of the firm remains solid.

JP Morgan has retained its “Overweight” rating on Supreme Industries but lowered its target price to Rs 4,760 from Rs 4,930 earlier. With the stock currently trading near Rs 4,000, the brokerage still sees an upside potential of around 19 per cent.

According to JP Morgan, the company continues to show strong volume growth, and a recovery in FY26 remains on track. However, the EBITDA margin came in slightly weaker than expected, prompting the minor revision in target price.

CLSA has maintained a “Hold” stance on Supreme Industries, revising its target price to Rs 4,275 from Rs 4,400 earlier. The brokerage said the company’s operating margin dropped to 12.4 per cent, a decline of 170 basis points year-on-year, while revenue grew 5 per cent and pipes business volumes surged 17 per cent, offering support to its future growth outlook.

Jefferies remains the most optimistic among the three, maintaining a “Buy” rating with a target price of Rs 5,100, implying a potential 27 per cent upside from current levels. The brokerage highlighted that pipes volume growth stood at 17 per cent, reflecting robust demand, even as margins softened slightly.

Jefferies noted that Supreme Industries’ management has reiterated its FY26 guidance of 15–16 per cent volume growth and 14.5–15 per cent operating margin, which could drive EBITDA recovery and strong free cash flow generation in the coming quarters.

The company’s board has declared an interim dividend of Rs 11 per share for FY26, with November 3, 2025, set as the record date.

On October 27, 2025, shares of Supreme Industries closed 1.84 per cent lower at Rs 3,929.90 on the NSE. The stock has fallen around 16 per cent year-to-date, but analysts believe value buying could emerge at lower levels, especially for long-term investors. If management achieves its FY26 growth targets, the stock could once again approach the Rs 4,800–Rs 5,000 zone, brokerages said.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff