New Research Reports

Revenue increased by 39.6% YoY (+13.0% QoQ) to INR 4,688 Mn, driven by strong volume growth. EBITDA grew by 54.3% YoY (+19.6% QoQ) to INR 801 Mn, on the back of robust revenue growth and strong margin expansion; EBITDA margin stood at 17.1% (+163bps YoY/ +95bps QoQ).

Supreme Industries (SI) reported Q4FY25 blended plastics volume growth of 2.3% YoY (6-year CAGR of 9.8%) with pipes segment reporting modest 2.2% YoY volume growth (6-year CAGR of 11.7%) on a high base YoY. Blended EBIT/kg contracted 23.1% YoY to INR16.5 (+19.2% QoQ) as pipes EBIT/kg fell 27.8% YoY to INR 13.3 (+22.3% QoQ), partly due to inventory losses.

Consolidated revenue stood at Rs. 3,027 crore, flat y-o-y, due to a 2% y-o-y fall in realisations, while total volumes grew at just 2.3% y-o-y in Q4FY25.

Supreme Industries’ Q4 revenue remained muted at Rs30bn, up just 0.6% y/y, as overall volumes sold rose a meagre 2.3% y/y. Profitability was impacted as PVC pricing environment remained uncertain, with a downward bias deferring filling of channel inventory and under absorption of fixed overheads.

We maintain our BUY recommendation on the stock.

We have changed our FY26E/FY27E EPS by -1.2%/+2.4% led by weakness in global demand in the short-term. Hence, we have reduced P/E multiple
to 30x (34x earlier). We value Cyient DLM at 30x P/E on FY27E EPS, implying a target price of INR 661.0 per share and reiterate our “BUY” rating on the stock.

Missed EBITDA estimate by 3% on weak pipe volume (+2.2% YoY vs +30% guidance), but beats PAT estimate by 3.5% on lower tax rate

Our recent interactions with industry participants and defense consultants focused on the need to put defense and aerospace projects on a fast track, the potential bidders for future tenders for MRFA, the potential impact on the overall defense budget kitty if such large deals were to go through.

We recommend a BUY rating on the stock with a target price of Rs 560/share, implying an upside of 10% from the CMP.