Supreme Industries Ltd. share price target

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...

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...