JP Morgan starts on India's Astral, Supreme Industries; shares climb

JP Morgan initiates coverage on Indian pipe makers Astral ASTL.NS and Supreme Industries SUPI.NS with "overweight," price targets at 1,700 rupees and 4,930 rupees, respectively

Shares of ASTL up 2.1% to 1,470.1 rupees, SUPI climbs 2.2% to 4,448.1 rupees

PTs at ~18%, ~13% premium on last close of ASTL and SUPI, respectively

JP Morgan sees India pipe majors nearing demand recovery, on the back of strong real-estate construction activity, higher water infrastructure spends and favorable channel inventories

Expects double-digit volume growth for ASTL, SUPI in FY25-28 vs an 8% rise in the broader industry

Upbeat on ASTL's leadership position in the chlorinated polyvinyl chloride pipes - a type of thermoplastic pipes - segment; see SUPI's scale and distribution edge as a key positive

Both stocks rated "buy" on avg, median PTs at 1,494.5 rupees, 4,490 rupees, respectively - data compiled by LSEG

YTD, ASTL, SUPI down ~11%, ~5%