Tale of the Tape 

Good evening everyone!

Nifty (+0.2%) and Sensex (+0.3%) were absolutely lifeless until a last-hour trading surge helped push them in the green. Midcaps (-0.2%) and Smallcaps (-0.3%) saw minor cuts. The advance-decline ratio was evenly split.

It was a mixed-bag kinda day for sectors. Real Estate (+1%) and Banks (+0.5%) saw the most buying. Pharma (-0.9%) and Auto (-0.4%) witnessed the most selling pressure.

Is India’s pipes sector set for good times? Read our top story to understand the bull case and get Motilal Oswal’s top three picks.

SEBI’s latest data shows F&O traders are still bleeding money. More details below on whether we need a tougher crackdown.

Market intermediary stocks took a hit today. Check out their charts below to find out why.

Titan (-6%) was the top Nifty loser after Q1 revenue growth missed Street estimates. Meanwhile, Kotak Mahindra Bank (+3%) was the top Nifty gainer on a solid Q1 biz update.

Belrise Industries jumped +9% after Jefferies initiated coverage; the brokerage sees a further +20% upside from current levels.

Nectar Lifesciences was locked in a -20% lower circuit after selling its core API & formulation biz for Rs 1,290 cr.

Textile stocks were in focus after Trump hit Bangladesh with a 35% tariff.  PS - Gokuldas Exports was up +3%.

PC Jewellers was down -4% after being placed under the additional surveillance measure framework.

Stock
Not A “Pipe” Dream

Is India’s plastic pipe industry at a key inflection point that may offer BIG gains? Yes, according to Motilal Oswal, which says the sector is a solid bet for the next two years.

Big Picture: the industry grew a decent ~10% CAGR over FY14-24. But experts say this could accelerate to ~14% CAGR over FY24-27 on the back of strong demand from housing and the GOI’s irrigation & water supply projects. Key irrigation schemes have seen a 25% YoY jump in the budget and the rural household tap water plan still has a strong runway. There’s also crazy opportunity in the GOI’s city gas push; companies are replacing metal pipes with new-age plastic ones as they offer up to 30% cost savings!

Here are Motilal’s top three picks:

1) Astral: The sector’s big daddy, with the highest TAM of Rs 1.5 lakh cr. The company has killed it through capacity expansions & an export push over the last three years. Equally important: its diversification into adhesives & bathware propped up margins in a difficult FY25. PS - Motilal sees a 21%+ upside from current levels.

2) Supreme Industries: The company has the largest number of SKUs (14,500) of the industry, with only 67% of its topline coming from plastic pipes at this point. FYI - in its core business, recent acquisitions including Wavin (+73k MPTA capacity) look to set it up for huge growth in North and South India. The brokerage has a target price of Rs 5,400 p/sh; +29% rally from current levels.

3) Prince Pipes and Fittings: A player that depends highly on real estate (~70% of FY25 revenue). This may sound silly, but replacement demand is HUGE. Stuff gets broken regularly and needs to be replaced constantly. FYI - Motilal sees a cool +38% upside.