Stocks To Buy: After UBS, JPMorgan bets on two pipe stocks for 18% upside
Published on 12/09/2025 09:11 AM
Stocks To Buy: After UBS, JPMorgan bets on two pipe stocks for 18% upsideBrokerage firm JPMorgan believes the sector is approaching a demand recovery inflection point, forecasting a turnaround in the second quarter and a margin recovery in the second half of the year.By Nimesh Shah | Meghna Sen September 12, 2025, 9:11:14 AM IST (Published)2 Min ReadAfter brokerage firm UBS, JPMorgan has now initiated coverage on two pipe companies, Astral Ltd. and Supreme Industries Ltd.
JPMorgan has assigned an 'Overweight' rating to both companies, with a price target of ₹1,700 for Astral and ₹4,700 for Supreme Industries.
The brokerage believes the sector is approaching a demand recovery inflection point, forecasting a turnaround in the second quarter and a margin recovery in the second half of the year.
It projects 17-18% EPS growth over the next three years, while flagging polyvinyl chloride (PVC) price volatility as a key risk.
Earlier, on Wednesday (September 10), UBS initiated coverage on these pipe stocks but with divergent views, issuing a 'Buy' rating on Astral with a price target of ₹1,800, and a 'Sell' rating on Supreme Industries with a target of ₹3,500.
UBS mentioned Astral's margin expansion potential driven by its backward integration strategy. In contrast, Supreme was downgraded due to high capital expenditure, declining RoCE, and challenges in non-core businesses.
UBS expects plastic pipe sales volumes to recover in the second half of FY26, supported by government infrastructure spending, real estate project completions, and rising agricultural incomes.
It projects high single-digit sector volume growth by FY27. UBS also said that PVC prices are near their cyclical bottom, with a likely rebound that could lead to better-than-expected margins for pipe manufacturers.
On Thursday, Astral shares closed 0.18% lower at ₹1,441, while Supreme Industries gained 1.55% to settle at ₹4,348.90.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsAstralshare market todaySupreme Industries