Supreme Industries Ltd. share price target

After a disappointing H1FY20, particularly on margins front, Supreme Industries Ltd.'s (SIL) Q3FY20 result was a positive surprise. The company's reported Net sales was in line with our estimate, however, EBITDA and PAT were substantially above led by higher share of value added products in total sales. Though NSR for piping and consumer products is still a laggard compared to Q2FY20 as well as Q3FY19, packaging and industrial products segments have done phenomenally well. SIL reported Net sales at Rs13.7bn (+8.1% QoQ/-2.6% YoY). Raw material prices softened in Q3 and aided EBITDA, which came in at Rs2.2bn (+27.85 QoQ/ +25.8% YoY). PAT stood at Rs1.2bn (4.6% QoQ/ +52.4% YoY). The management has revised its EBITDA margin guidance...

Sector: Plastic /Mid-Cap | Earnings Update 2QFY20 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' plastic division (excluding construction business) recorded value growth of ~3% YoY led by 12% volume growth during Q2FY20. The company's piping division (~64% of topline) recorded a strong performance with volume, value growth of 20% and 19%, respectively. However, the performance of industrial, packaging and consumer products was hit by low demand and strong competition in Q2FY20. Plastic segment EBITDA margin increased ~100 bps YoY to 14.5% in Q2FY20. The strong margin was on account of inventory gains and change in product mix during...

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...