Shares of Astral Ltd. and Prince Pipes and Fittings Ltd. gained up to nearly 13% despite weak quarterly results as the prices of a key raw material — PVC Resin — witnessed a reversal after five months.
This is a positive for plastic pipe players such as Astral Ltd., Prince Pipes, Supreme Industries and Finolex Industries.
According to a report by brokerage firm Prabhudas Lilladher, the price of PVC resin increased by ₹1.5 per kg in the domestic market on May 20, 2025. The prices had been on a downward trend over the last five months, declining from approximately ₹83 per kg in November 2024 to ₹72 per kg in May 2025.
The sustained price correction led to a sharp reduction in channel inventory levels. With the price reversal in this key raw material, plastic pipe distributors and channel partners are expected to begin restocking, which should benefit pipes and fittings players, the brokerage said.
According to the note, Normalisation of channel inventory is expected to drive 8% to 8.5% growth for the industry in the financial year 2026.
Larger players are expected to gain market share and achieve, or even exceed, their near-term volume growth guidance, the Prabhudas Lilladher note said.
Prabhudas Lilladher's preferred picks in the sector are Astral and Supreme Industries.
Astral Ltd's plumbing business volume growth in the financial year 2025 was at 2.4%, a sharp miss on guidance of 10%-15%. Its FY25 margin expanded to 18.9% from 18.3% — which was above the 16%-18% guidance — despite inventory losses due to PVC fall.
Prince Pipes' fourth quarter volumes were at 50,454 MT, de-grew by 2% compared to guidance of mid- to high single-digit growth.
Its FY25 overall volume growth was at 3%, with volume at 177,702 MT compared to 172,793 MT in FY24. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) margin contracted to 6% from 12% in the previous fiscal.
Shares of Astral Ltd and Prince Pipes gained 5.1% and 12.85% to hit intraday highs of ₹1,448.6 apiece and ₹334 apiece, respectively.
Also Read: Strides Pharma outperforms guidance of 12–15%, aided by strong US business performance in Q4
This is a positive for plastic pipe players such as Astral Ltd., Prince Pipes, Supreme Industries and Finolex Industries.
According to a report by brokerage firm Prabhudas Lilladher, the price of PVC resin increased by ₹1.5 per kg in the domestic market on May 20, 2025. The prices had been on a downward trend over the last five months, declining from approximately ₹83 per kg in November 2024 to ₹72 per kg in May 2025.
The sustained price correction led to a sharp reduction in channel inventory levels. With the price reversal in this key raw material, plastic pipe distributors and channel partners are expected to begin restocking, which should benefit pipes and fittings players, the brokerage said.
According to the note, Normalisation of channel inventory is expected to drive 8% to 8.5% growth for the industry in the financial year 2026.
Larger players are expected to gain market share and achieve, or even exceed, their near-term volume growth guidance, the Prabhudas Lilladher note said.
Prabhudas Lilladher's preferred picks in the sector are Astral and Supreme Industries.
Astral Ltd's plumbing business volume growth in the financial year 2025 was at 2.4%, a sharp miss on guidance of 10%-15%. Its FY25 margin expanded to 18.9% from 18.3% — which was above the 16%-18% guidance — despite inventory losses due to PVC fall.
Prince Pipes' fourth quarter volumes were at 50,454 MT, de-grew by 2% compared to guidance of mid- to high single-digit growth.
Its FY25 overall volume growth was at 3%, with volume at 177,702 MT compared to 172,793 MT in FY24. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) margin contracted to 6% from 12% in the previous fiscal.
Shares of Astral Ltd and Prince Pipes gained 5.1% and 12.85% to hit intraday highs of ₹1,448.6 apiece and ₹334 apiece, respectively.
Also Read: Strides Pharma outperforms guidance of 12–15%, aided by strong US business performance in Q4
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