Market Share Gains
Expected: CurrentHIGH confidence
What: Piping Volume Growth: 16%
“I have no idea, but I believe this is my conjecture our market share must have gone up.”
Supreme Industries Ltd: Is It a Deep Value Opportunity?
StrongAccelerating
As of , Supreme Industries Ltd (Building Materials - Plastic Pipes) has a deep value score of 72/100 (rated Strong). Earnings are accelerating. 1Y return vs Nifty 500: -22%.
Supreme Industries Ltd Key Facts
- PE Ratio
- 46.6x
- Market Cap
- ₹43,467 Cr
- Value Score
- 72/100
- Margin of Safety
- -60%
- PAT Growth YoY
- +48%
- Revenue Growth YoY
- +17%
- OPM
- 18.0%
PE: At PeakNeutral
What's Happening
📊PE near cycle highs — limited room for further expansion
💪Debt reduced 18% YoY — balance sheet strengthening
🌐FII stake decreased 5.3% this quarter
🏛️DII accumulation — stake up 5.3%
💰Trading 60% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Market Share Gains
CurrentHIGH
2. New Product Or Brand Launch
FY27MEDIUM
3. Operating Leverage Inflection
FY27MEDIUM
Key Risks
1. Polymer prices (PVC, CPVC, PE) fell continuously, causing ₹100-120 Cr in invento
HIGH2. Global tensions causing volatility in commodity and crude oil prices
MEDIUM3. One-time impact of ₹15 crores due to new labour code provisions
LOWSector-Specific Signals
Piping Volume Growth16%+16%
9M Inventory Loss₹100-120 CrNot Given
CPVC Volume Growth (9M)30%+30%
Value Added Product Share45%+500 bps
Key Numbers
PAT Growth YoY
+48%
Inflection Up
Revenue YoY
+17%
Inflection Up
Operating Margin
18.0%
+400 bps YoY
PE Ratio
46.6
PEG Ratio
0.00
Current Price
₹3,422
Dividend Yield
1.05%
3Y PAT CAGR
+3%
Market Cap
43.5K Cr
Valuation
Significantly OvervaluedWhy Are Supreme Industries Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
New Product Or Brand Launch
Expected: FY27MEDIUM confidence
What: Window Revenue Potential: ₹300 Cr+
“We will start sales from next month only... In excess of 300 crores, full capacity.”
Operating Leverage Inflection
Expected: FY27MEDIUM confidence
What: Capacity Utilization: 70% target
Impact: Margin improvement
“Normally, if we utilize 70%, we should be happy. So, we should expect that we should be able to sell 70% capacity next year.”
Piping Volume Growth of 16%
MEDIUM confidence
What: Piping Volume Growth of 16%
“Plastic Piping System business grew by 16 % in volume and 10 % in value terms.”
What Are the Key Risks for Supreme Industries Ltd?
Earnings deceleration risks from management commentary
Polymer prices (PVC, CPVC, PE) fell continuously, causing ₹100-120 Cr in invento
HIGHTrigger: Global supply-demand imbalance and lower crude prices.
Impact: PAT impact: ₹100-120 Cr loss
Management view: Management believes prices have bottomed out and started hardening in January.
Monitor: commodity
Global tensions causing volatility in commodity and crude oil prices
MEDIUMTrigger: Uncertainty from multiple wars and locations affecting global trade.
Management view: Not explained on call
Monitor: geopolitical
One-time impact of ₹15 crores due to new labour code provisions
LOWTrigger: Compliance with updated regulatory requirements.
Impact: PAT impact: ₹15 Cr
Management view: One-time cost already accounted for.
Monitor: labor
What Is Supreme Industries Ltd's Management Saying?
Key quotes from recent conference calls
“So last time, we were saying that around 14.5% to 15.5% kind of EBITDA margin for this year. [Previous EBITDA Margin guidance]”
“The Company expects to grow 12% to 14% in volume in this year. [Previous Volume Growth guidance]”
“Three units acquired through Wavin Business acquisition are fully integrated and realigned and shall be available for their full potential from February onwards. [Initiative: Wavin Business Integration]”
“We anticipate we may be able to produce around 250,000 windows every year... In excess of 300 crores, full capacity. [Initiative: PVC Window Business Launch]”
What Did Supreme Industries Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹2,631 Cr
YoY +3%
Why: Revenue growth was constrained by falling polymer prices which led to a 12% to 20% decline in topline realization despite volume growth.
Value growth significantly lagged volume growth due to deflationary raw material pricing.
EBITDA
₹324 Cr
YoY -11%Margin 12.3%
Why: Margins were compressed by inventory losses estimated between ₹100 crores to ₹120 crores over the nine-month period due to falling polymer prices.
Operating margins were impacted by a continuous downward trend in PVC and other polymer prices.
PAT
₹153 Cr
YoY -22%
Why: Profitability was impacted by lower operating margins and a significant drop in profit share from associates like Supreme Petrochem.
PAT decline was sharper than EBITDA due to higher interest costs and lower associate income.
Other Highlights
• Value-added product turnover reached ₹1,118 crores in Q3, a 16% growth YoY.
• Net debt stood at ₹132 crores as of December 31st, 2025.
• Piping volume grew 16% in Q3, outperforming the overall company volume growth.
What Sector Metrics Matter for Supreme Industries Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Piping Volume Growth
16%
YoY +16%
Why: Driven by strong demand in the plumbing segment and market share gains.
9M Inventory Loss
₹100-120 Cr
YoY Not Given
Why: Result of continuous erosion in polymer prices across PVC, PE, and CPVC.
CPVC Volume Growth (9M)
30%
YoY +30%
Why: Strong outperformance in the plumbing segment.
Value Added Product Share
45%
YoY +500 bps
Why: Strategic focus on increasing the share of premium products like silent pipes and fittings.
Total Installed Capacity (Piping)
1,000,000 MT
YoY Not Given
Why: Expansion through Wavin acquisition and brownfield projects.
Net Debt
₹132 Cr
YoY Not Given
Why: Temporary increase due to Wavin acquisition and capex funding.
Inventory Value
₹1,900 Cr
YoY Not Given
Why: Increased to support optimal production capacity utilization.
Receivable Days
17 days
YoY Not Given
Why: Management is satisfied with the low level of outstandings.
What Is Supreme Industries Ltd's Management Guidance?
Forward-looking targets from management for FY26
OPM Guidance
13.5–14%
Capex Plan
₹1200 Cr
Revenue Outlook
₹11,000 crores to ₹11,500 crores
Margin Outlook
LOWERED
Capex Plan
₹1,200 Cr
Existing and new capital commitments including Wavin acquisition.
Volume
REAFFIRMED
Management Tone: BULLISH
Guidance Changes
LOWERED
EBITDA Margin: 14.5% to 15.5% → 13.5% to 14%
How Fast Is Supreme Industries Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +17% | +7% | Inflection Up |
| PAT (Net Profit) | +48% | +3% | Inflection Up |
| OPM | 18.0% | +400 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: Supreme Industries Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Supreme Industries Ltd's deep value score?
Supreme Industries Ltd has a deep value score of 72/100 (rated Strong). This score is calculated from three components
- Earnings Score: 33/40 — measures PAT growth momentum across quarters
- Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 25/25 — operational quality (margins, revenue growth, valuation)
Is Supreme Industries Ltd fundamentally improving?
Supreme Industries Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +183%
- Previous Quarter PAT Growth (QoQ): -7%
- 2 Quarters Ago PAT Growth (QoQ): -19%
- PAT Acceleration: +100.6pp (profits are accelerating)
- 1 consecutive quarters of positive PAT growth
Why is Supreme Industries Ltd underperforming despite good earnings?
Supreme Industries Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -22%
- 6-Month Return vs Nifty 500: +6%
- 3-Month Return vs Nifty 500: -18%
- Yet average quarterly PAT growth is +52% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Supreme Industries Ltd?
Supreme Industries Ltd's earnings momentum is Accelerating — profit growth is speeding up.
- PAT QoQ progression: -19% → -7% → +183% (2Q ago → 1Q ago → latest)
- Acceleration: +100.6pp
- PAT YoY Growth: +48%
Is Supreme Industries Ltd undervalued?
Supreme Industries Ltd's valuation metrics
- Price-to-Earnings (PE): 45.6x
- Price-to-Book (PB): 7.0x
- PEG Ratio: 0.0x
- Margin of Safety: -60% (appears overvalued)
What are the revenue and margin trends for Supreme Industries Ltd?
Supreme Industries Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +31%
- Average Quarterly Revenue Growth: +12%
- Revenue Acceleration: +19.8pp
- Latest OPM Change: +6.0pp (margins expanding)
- Average OPM Change: +1.8pp
- Revenue YoY: +17%
What is Supreme Industries Ltd's trailing twelve month (TTM) performance?
Supreme Industries Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹954 Cr
- TTM PAT Growth: -0.7% YoY
- TTM Revenue: ₹11,000 Cr
- TTM Revenue Growth: +7.4% YoY
- TTM Operating Margin: 13.9%
What sector does Supreme Industries Ltd belong to?
Supreme Industries Ltd key facts
- Sector: Building Materials - Plastic Pipes
- Market Cap: ₹43.5K Cr
- Rank in Building Materials - Plastic Pipes: #1 by value score
- Overall rank among all deep value stocks: #16
Is Supreme Industries Ltd a good deep value opportunity to study?
Supreme Industries Ltd shows strong deep value signals — good score (72/100), accelerating earnings, and significant underperformance vs Nifty.
- Value Score: 72/100 (Strong)
- Earnings: Accelerating
- 1Y Underperformance: -22% vs Nifty 500
What is the bull and bear case for Supreme Industries Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- Revenue growth also accelerating
- Operating margins expanding
Risk Factors (Bear Case)
- Appears overvalued despite underperformance
How does the Building Materials - Plastic Pipes sector look for deep value?
Building Materials - Plastic Pipes deep value sector overview
- 1 deep value stocks in this sector
- Average value score: 72/100
- Avg PAT acceleration: +100.6pp
- Top pick: Supreme Industries Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Supreme Industries Ltd?
Supreme Industries Ltd has 4 key growth catalysts identified from recent earnings analysis
- Market Share Gains
- New Product Or Brand Launch
- Operating Leverage Inflection
- Piping Volume Growth of 16%
What are the key risks in Supreme Industries Ltd?
Supreme Industries Ltd has 3 key risks worth monitoring
- Polymer prices (PVC, CPVC, PE) fell continuously, causing ₹100-120 Cr in invento
- Global tensions causing volatility in commodity and crude oil prices
- One-time impact of ₹15 crores due to new labour code provisions
What did Supreme Industries Ltd's management say in the latest earnings call?
In Q3 FY26, Supreme Industries Ltd's management highlighted
- "So last time, we were saying that around 14.5% to 15.5% kind of EBITDA margin for this year. [Previous EBITDA Margin guidance]"
- "The Company expects to grow 12% to 14% in volume in this year. [Previous Volume Growth guidance]"
- "Three units acquired through Wavin Business acquisition are fully integrated and realigned and shall be available for their full potential from Februa..."
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.