Supreme Industries Ltd. share price target

Supreme Industries Ltd (SIL) is India's leading player in plastic products; the wide range of offering includes Plastic Piping system, Packaging, Industrial and Consumer products ....

Supreme Industries' (SI) Q2FY20 revenue grew 2.5% YoY (adj. for property sale last year), coming in slightly below estimates despite a healthy 12% YoY rise in volumes.

Supreme is one of the largest plastic processor in India with manufacturing capacity of ~ 6 lakhs tonnes. It has four business division namely Plastic piping division, Industrial products, Packaging products and consumer furniture segments. Supreme Industries is one of the largest PVC pipe and consumer furniture companies with organized market share of ~14% and 26% respectively. Further, Supreme's plastic piping division (contributes ~58% in topline) grew at CAGR of ~15% during FY11-19 (against Industry growth of ~12%) led by sustained demand of pipes from housing and...

Sector: Plastic /Mid-Cap | Earnings Update 1QFY20 Background: Supreme Industries (SI) is a plastic product manufacturer and the largest plastic processor in India, processing over 0.37mn MT annually. Company has four business verticals i.e. Plastic Piping (55%), Packaging Products (21%), Industrial Products (16%) and Consumer Products (7%). SI has 22 manufacturing plants situated across India. Company enjoys a significant market share across its business verticals; Plastic Piping (9.48%), Industrial Products (15%) and Consumer Products (13%). Supreme Industries is the market leader in the Packaging Products segments like XLPE (50%), EPE Foam (36%), Cap Cell (30%) and Air Bubble Film (18%). SI's sales...

Supreme Industries recorded strong volume growth of ~14% YoY in Q1FY20 while realisation de-growth is attributable to a change in product mix & high discounts in selected product categories. While the piping segment recorded a strong performance, the other three segments i.e. industrial, packaging and consumer furniture segment performance stayed muted owing to low volume growth. EBITDA margin fell ~215 bps YoY led by ~150 bps YoY decline in gross margin due to inventory losses and high contribution of low margin products (such as agri pipes in piping segment)....

Supreme Industries (SI) reported below-expected Q1FY20 revenue growth of 6.8% YoY despite a healthy 13.5% rise in volumes.

Supreme operates in five major business verticals namely plastic piping, consumer products, packaging products, industrial products and composite products. Some of its products include moulded furniture, storage & material...

Supreme Industries (SI) reported volumes of 14% in piping segment in Q4FY19 and overall volume growth registered for Q4FY19 was 10%. Revenues were higher by 4% YoY due to growth in piping and packaging segment which was offset by de-growth in Industrial segment. PVC prices decreased by 12.5% in March 2019, which led to higher raw material costs owing to inventory losses in the quarter, which contracted margins. Profitability was lower than their estimates, due to inventory losses reported. Going forward, we believe that stable RM prices will drive gross...

Supreme Industries (SI) reported below-expected Q4FY19 revenue growth of 4.1% YoY with volume growth of 10.4%. EBITDA margins contracted 630bps YoY to 13.2% primarily due to higher raw material cost (+490bps) and other expenditure (+120bps), leading to EBITDA/adj. PAT declines of 30%/39% YoY. Management has guided for revenue growth of 12-15% and operating margins of 13.5-15% in FY20. Given the Q4 miss, we cut FY20/FY21 earnings...

Strong volume growth in plastic piping system: SIL reported revenue growth of 12.9% y-o-y to Rs. 5,612 crore during FY2019. Revenue growth was backed by a 7.2% y-o-y increase in overall volumes and 4.6% y-o-y improvement in blended realisation during FY2019. Barring industrial products (remained flat), volumes of all the segments grew during FY2019, while...