Shares of Astral Ltd. and Supreme Industries Ltd. are likely to remain in focus after Polyvinyl Chloride (PVC) resin prices were raised by Rs 4 per kg, effective July 27, according to channel checks.
The increase marks the first meaningful price hike since the Centre imposed a Minimum Import Price (MIP) on PVC imports. Industry channel checks indicate the MIP has effectively created a price floor of around Rs 84-85 per kg, allowing domestic resin prices to move higher.
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Astral and Supreme Industries are among the country’s largest organised manufacturers of PVC, uPVC and CPVC piping systems, making them key beneficiaries, and at times victims, of movements in PVC resin prices.
The price of PVC resin is one of the biggest raw material costs for both companies. Changes in resin prices typically influence distributor inventory replenishment, dealer stocking patterns and operating margins across the plastic piping industry.
A sustained increase in PVC prices can improve pricing discipline across the sector, although the eventual impact on profitability depends on how effectively manufacturers pass on higher input costs to customers and how demand responds.
According to channel checks, the latest Rs 4/kg increase is the first significant revision since the MIP came into force, signalling that domestic pricing may be stabilising after months of volatility.
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Stocks in Focus
Astral Ltd closed at Rs 1,460.10 on Friday, up 3.30%, in the previous trading session. The stock has deliver muted return of 1.7% on a year-to-date basis, and of 3.4% over the past 12 months.
Supreme Industries Ltd ended at Rs 3,463 on Friday, gaining 1.35% as against the previous day’s close. The scrip is almost flat in the year so far, whereas it has declined by nearly 20% over the last 12 months.
Both companies are scheduled to report their Q1 FY27 earnings in the coming days, with investors expected to closely monitor management commentary on raw material costs, pricing trends and demand outlook.
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