Plastic Sector Check - Profitability, Demand Likely To Improve From H2 FY25E: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Pipe demand and profitability are likely to improve in H2 FY25E as PVC prices have stabilised in August 2024. Volatility in PVC prices during June-August -24 had resulted in channel de-stocking which we believe could result in subdued Q2 FY25E for pipe companies. However, as plumbing market remains buoyant, coupled with demand from infrastructure/agri segment and now with PVC prices stabilising channel inventory too shall normalise going ahead and we thus expect demand to be healthy in pipes segment during H2 FY25E (which is seasonally busy). Pipe profitability, too, may improve in H2 FY25E driven by better product mix (higher plumbing sales which has better margins) and operating leverage. We upgrade Prince Pipes and Fittings Ltd. from Add to Buy (due to reasonable valuations) with an unchanged June-25E target price of Rs 716 (post 9% correction in stock price over the past 1m), maintain Hold on Astral Ltd./Finolex Industries Ltd. (due to limited upside) and Reduce on Supreme Industries (rich valuations) with unchanged target prices..Click on the attachment to read the full report:.Automobiles Sector Check - Two- Wheeler, Buses Shine; Passenger Vehicle A Mixed Bag: Axis Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Plastic Sector Check - Profitability, Demand Likely To Improve From H2 FY25E: ICICI Securities

The brokerage believes plastic pipe segment has medium-term demand tailwinds as housing and infrastructure market remains healthy.

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Plastic Sector Check - Profitability, Demand Likely To Improve From H2 FY25E: ICICI Securities

The brokerage believes plastic pipe segment has medium-term demand tailwinds as housing and infrastructure market remains healthy.

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