Supreme Industries Ltd. share price target

Supremes' plastic segment revenue growth at ~7% YoY was led by ~10% volume growth. Company faced pricing pressure on account of sharp decline in raw material prices. On the segment front, Supreme reported strong sales growth in the piping and packaging segment by 14% and 11% YoY led by volume growth of 15% and 14% YoY respectively. Company foresees strong demand for piping products (both PVC, CPVC) and bathroom fittings from the housing segments. In the packaging segment revenue growth would be driven by new launches and favourable mix in the...

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 . Q4FY19 Revenue grew by modest 4%, but PAT declined by 37% YoY due to weak operating performance. EBITDA declined by 30% YoY and margins declined by 630bps YoY to 13.2% due to inventory loss & weak product mix. With gradual revival in demand from agriculture and housing...

Sector: Plastic /Mid-Cap | Earnings Update 4QFY19 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 (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 estimates...

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. Despite 10% YoY revenue growth in Q3FY19, PAT declined by 22% YoY due to weak operating performance. Volume growth was muted at 4% YoY due to poor performance of packaging segment and industrial segment. EBITDA declined by 11% YoY and margins declined by 300bps YoY to...

ICICI Securities Ltd | Retail Equity Research Supreme Industries' Q3FY19 topline growth of ~10% was largely driven by ~7% increase in realisation while volume growth at 4% was largely hit by industrial product categories. On the segment front, packaging and industrial category performances were hit by cross laminated products and divestment of automotive business in Q3FY18 that hit the volume growth of these businesses. However, the company witnessed good demand traction in the piping...

Supreme Industries' Q3FY19 results were a miss owing to lower than expected volume growth and higher operating cost. Total volume grew by just 4% YoY to 1,00,982MT while realization increased by 11% YoY in Q3FY19. Revenue was up 10.3% YoY to Rs14.1 bn, while EBITDA and PAT were down 11.2%/22.3% YoY to Rs1.8 bn/Rs810 mn respectively. The management maintained its guidance of 10%/15% volume/value growth with EBITDA margin of 14%-14.5% (earlier 15%) for FY19 to be led by Piping segment. Though, we factor in slightly lower growth looking at the weaker result. We cut our EBITDA estimates by 7%/5% for FY19E/20E on lower margins and cut our...

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 Ltd (SIL) reported mix set of numbers for Q2FY19. Its Net Revenue grew by 24.7% YoY, driven largely by higher realizations ( 11.2%) and revenue of Rs 81cr from construction business. Adjusted revenue growth stood at 17.1% YoY. Adjusted EBITDA & PAT grew by 10.7% & 2.6% YoY respectively, while adjusted EBITDA & PAT margins contracted by 74bps & 83bps YoY respectively.