Anand Rathi is bullish on Supreme Industries has recommended buy rating on the stock with a target price of Rs 2546 in its research report dated May 04, 2022.
Sharekhan is bullish on Supreme Industries has recommended buy rating on the stock with a target price of Rs 2500 in its research report dated April 29, 2022.
Audio Recording Link of the Conference Call held for Analysts and Investors pertaining to Audited Standalone & Consolidated financial results for the Quarter and Financial Year ended 31st March, 2022.
Supreme Industries: We maintain BUY on Supreme Industries (SIL), keeping the TP unchanged at INR 2,770/share (SOTP-based). In Q4FY22, SIL's consolidated revenue rose +23% YoY to INR 25.6bn on strong piping demand rebound. However, gross margin contraction pulled down EBITDA/APAT by 23/28% YoY to INR 3.91/3.24bn respectively. As demand has picked up since March-22 and even resin prices have started to cool off April onwards, the management remains confident of strong volume growth in FY23. The company is also expanding its capacity amid a healthy demand outlook. IndiaMART InterMESH: IndiaMART posted in-line revenue growth of +7.1% QoQ but margins took a severe hit (down 1,347 bps QoQ to 28.4%) due to investments in sales capacity (+42.6% YoY). The paid supplier addition of ~13k (highest ever) was higher than our estimate of 8K and the additions were primarily in the monthly bucket. The portfolio churn has reduced across all buckets, indicating a sustained momentum. Management has indicated paid supplier addition of ~8-9k/quarter, supported by investments in sales, technology, and channel partners. Margin decline was primarily on account of a sharp increase in employee and outsource sales cost, with the prime objective to boost growth. We maintain our positive stance, based on (1) higher growth visibility, led by 31% YoY increase in cash collections; (2) uptick in customer addition and investment in growth engine; (3) economic recovery leading to improving health of MSME; (4) completion of busy acquisition with huge cross-sell opportunity; and (5) tender buyback offer of INR 1bn (~0.5% of equity). We increase revenue estimate by...