Shares of Supreme Industries leapt 3.3% to ₹3,461.30 as Investec upgraded the stock to Buy and lifted its target to ₹3,860, a 15% upside from Thursday's close of ₹3,344.40.
FY27 revenue is now pegged at ₹12,576 crore, a 3% rise over the prior year. FY28 sees a 6% jump to ₹13,773 crore, while FY29 is projected at ₹15,563 crore. EBITDA is expected to climb from ₹1,553 crore to ₹2,398 crore, a 15% CAGR, and normalised net income will rise from ₹954 crore to ₹1,446 crore.
Investec also bumped its profit estimates up 10% for FY27 and 13% for FY28, and lifted EBITA projections by 7% and 9% respectively as the company’s earnings outlook improves after two years of subdued growth.
The upgrade comes as the Jal Jeevan Mission funding cycle is expected to revive, with early disbursements already visible in some states. Coupled with a recent climb in PVC prices—from ₹82/kg in June to ₹103/kg today—Supreme could see inventory gains in Q2 FY27 and beyond.
On valuation, Investec now prefers a September 2028 base, valuing the firm at 36× P/E versus 40× earlier, underpinning the ₹3,860 target. The company remains debt‑free, with net cash projected at ₹6,515 crore in FY27 and ₹13,957 crore in FY28.
With 22 of 30 analysts holding a Buy, 6 Hold and 2 Sell, the stock’s 23% decline over the last 12 months is still seen as a buying opportunity amid a broader sector rally. Investors should watch the upcoming earnings release in Q2 FY28 for confirmation of the revised guidance.