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What is the story about?
Brokerage firm JPMorgan on Tuesday, November 25, said it continues to prefer Astral Ltd.over Supreme Industries Ltd., despite its recent substantial outperformance compared to the latter.
It said since November 12, shares Astral and Supreme Industries have corrected 9% and 11%, respectively, compared to NIFTY 500, which is down 1%. This comes following three negative developments around polyvinyl chloride (PVC) prices.
The recent negative developments around PVC prices are primarily linked to supply glut, weak demand, which has led to price declines and inventory losses.
The brokerage said its "overweight" view on the two firms was predicated on:
In August, the Directorate General of Trade Remedies (DGTR) recommended a five-year anti-dumping duty on PVC resin imports.
While market share gains have surprised to the upside, the industry demand remains muted for now, and uncertainty on PVC prices has increased, JPMorgan said.
In this context, JPMorgan continues to prefer Astral over Supreme Industries, given the margin advantage and focus on volumes by the company. On the other hand, Supreme Industries' performance improvement requires a broader industry demand recovery and PVC price stability.
Of the 30 analysts that have coverage on Astral, 18 have a "buy" rating, nine have a "hold" rating and three have a "sell" rating. Meanwhile, 16 analysts have a "buy" rating, 11 have a "hold" rating and three have a "sell" rating on Supreme Industries.
Shares of Astral were down 1.5% ₹1,450 apiece, while Supreme Industries were up 0.3% at ₹3,442.2 apiece around 10.35 am on Tuesday.
Also Read:Fractal Analytics IPO: All you need to know about India's first potential AI public issue
It said since November 12, shares Astral and Supreme Industries have corrected 9% and 11%, respectively, compared to NIFTY 500, which is down 1%. This comes following three negative developments around polyvinyl chloride (PVC) prices.
The recent negative developments around PVC prices are primarily linked to supply glut, weak demand, which has led to price declines and inventory losses.
The brokerage said its "overweight" view on the two firms was predicated on:
- Sustained market share gains by the companies
- Industry demand recovering in the second half of the financial year 2026
- Some pricing support from the anti-dumping duty on PVC resin.
In August, the Directorate General of Trade Remedies (DGTR) recommended a five-year anti-dumping duty on PVC resin imports.
While market share gains have surprised to the upside, the industry demand remains muted for now, and uncertainty on PVC prices has increased, JPMorgan said.
In this context, JPMorgan continues to prefer Astral over Supreme Industries, given the margin advantage and focus on volumes by the company. On the other hand, Supreme Industries' performance improvement requires a broader industry demand recovery and PVC price stability.
Of the 30 analysts that have coverage on Astral, 18 have a "buy" rating, nine have a "hold" rating and three have a "sell" rating. Meanwhile, 16 analysts have a "buy" rating, 11 have a "hold" rating and three have a "sell" rating on Supreme Industries.
Shares of Astral were down 1.5% ₹1,450 apiece, while Supreme Industries were up 0.3% at ₹3,442.2 apiece around 10.35 am on Tuesday.
Also Read:Fractal Analytics IPO: All you need to know about India's first potential AI public issue
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