Sell

Quarterly Update Q1FY25

Supreme Industries (SI) has reported Q1FY25 blended plastics volume growth of 17% YoY (5-year CAGR of 8.9%), driven by 19.5% YoY volume growth in pipes segment (5-year CAGR of 10.5%).

Quarterly Update Q4FY24

NAM: Strong growth but upside capped cut to HOLD. APOLP: Disappointing result on all fronts. ITC: Cigarette and paperboard businesses disappoint. LT: Order inflow guidance raised; maintain BUY. NTPC: Normal quarter, aggressive expansion; maintain BUY. MRCO: Domestic business still lacklustre. UTIAM: Core earnings miss estimates. ASTRA: Mixed quarter, guidance broadly intact

Quarterly Update Q3FY24

Quarterly Update Q2FY24

In Q2FY24, Supreme Industries (SI) reported blended plastics volume growth of 23.2% YoY (4-year CAGR of 10.2%) on a low base, driven by 29.9% YoY volume growth in the pipes segment (4-year CAGR of 11%). Blended EBIT/kg grew 157% YoY to INR21.1 (+22.5% QoQ) with pipes EBIT/kg increasing 517% YoY to INR 19.5 (+17.7% QoQ) due to a low base (continuous decline of PVC price in Q2FY23 led to high inventory losses).

Record PVC/EDC delta at $790/ton (Vs $654 / ton in Q2FY21 Vs $830 / ton in Q1) last quarter pretty much explains the momentous rise in PVC resin EBIT to Rs 230.59 crs compared to just Rs 99.10 crs in the same quarter a year ago, as external sales of resin rose by a n astonishing 41.6% to 13684 tons. With spreads at record highs, PVC resin spreads...

Nilkamal Ltd.'s (NILK) Q4FY21 result was a mix bag as net sales was above tad higher than our estimate, while margins were disappointing. Sales volume growth further strengthened in Q4FY21.However, steep increase of 20% YoY in raw material prices eroded operating margin. Net sales improved by 21.1% YoY to Rs6,799mn, while EBITDA came at Rs789mn, up by 11.7% YoY. The company reported net profit of Rs382mn, a healthy growth of 20.2% over Q4FY20. Despite challenging business environment due to pandemic, NILK's strong distribution network, healthy relationship with its customers and Company's ability of providing all in one services and robust supply chain management system were...

Supreme Industries Ltd.'s (SIL) Q4FY21 result was a beat to our as well as consensus estimates on all parameters. The company reported net sales of Rs20.8bn, increased by 45.7% YoY, while EBITDA came in at Rs5.1bn, a robust growth of 86.4% over Q4FY20. It reported net profit of Rs4.5bn, higher by 284% YoY. SIL reported inventory gain of Rs2,000mn in current quarter, which resulted in superlative performance of the company. The management remains committed to new products launches and capacity expansion to strengthen further market share in the domestic market as well as increase export sales in future. We have revised our net sales/PAT estimates by...

Supreme Industries' (SI) Q4FY21 revenue grew 46% YoY, aided by an 8% rise in volumes off a tepid base.

V-shaped recovery in global PVC resin prices since May with corresponding surge in PVC/EDC delta (above long term average of $550600/mt) explains much of the rise in Finolex's PVC resin EBIT in Q2 - Rs 99.10 crs Vs Rs 45.13 crs in the same quarter a year ago.; though external sales (volumes) fo PVC resins rose by just 38.1% to 9665 tons. As indication of its barely subdued impact, Finolex's PVC resin realizations were at $920 / mt compared to $740/ton in Q1 while PVC/EDC delta stood at $653/mt compared to $547/mt in Q1. Supply constraints of PVC resins have...

Supreme Industries' (SI) Q3FY21 revenue grew 34% YoY, aided by a 10% rise in volumes.