Supreme Industries Ltd. share price target

In our view, Supreme Industries (SI IN) enjoys a strong business moat, with multiple offerings across plastic pipes (7000+ SKUs), packaging, industrial and furniture segments, along with pan-India distribution and manufacturing (25+ plants). We expect capacity expansion (~50k MT per annum being added to the existing ~567k MT capacity) to support volume growth at ~12%. Any volatility in prices of key raw material (PVC resin) is a monitorable, though this largely remains a pass-through for most pipe players. Maintain ADD....

Supreme Industries Ltd (SIL) reported healthy set of numbers for Q4FY18. While revenue growth of 14.7% YoY was in line with our projections, the company surprised positively on the profit front with a strong growth of 19.5% & 21.8% in operating profit & PAT respectively. EBITDA margin expansion of 78bps YoY (at 19.5%), led by improved product mix and operating leverage, was encouraging.

Supreme Industries (SIL) came out with strong result in Q4FY18 led by healthy volume growth of 8% and margin expansion of 57bps. Revenue increased 14.7% YoY to Rs14.7 bn, EBITDA increased 18.2% to Rs2.9 bn. Share of overall Value added products was 36% as against 38% in 4QFY17. Plastic piping and Industrial segment saw significant improvement with 10% and 31% revenue growth. The management guided for 12-15% of revenue growth to...

Supreme Industries reported a good all-round performance led by a change in product mix and higher realisation growth. Overall volume growth of ~8% YoY was led by 16%, 17% YoY growth in volume of industrial, consumer product categories, respectively. Piping segment volume growth was lower at 8% YoY due to a slow pick-up in demand from agriculture segment. On the margin front, price hike to offset higher raw material prices coupled with regrouping of some items in other expenses head has helped in EBITDA margin...

Supreme Industries numbers were a positive surprise on the operating parameters. Margin expansion of 400 bps on a sequential basis drove the operating profit growth. Gross margins also expanded by nearly 200 bps depicting improving product mix. Plastic piping and Industrial products were the key drivers for the Q4FY18 performance. Performance in the composite cylinder is expected to improve in FY19. Considering the buoyancy in the piping segment, we expect SIL volume and revenue growth trajectory to improve from heron. Key factor to watch out will be the gross margin pattern....

registering growth of 14.7 % y-o-y during Q4FY2018. The growth was primarily led by 16.5% y-o-y and 16.9% y-o-y volume growth in industrial and consumer products, respectively. Volume growth of the largest revenue contributor, plastic piping segment, remained below our estimates at 7.7% y-o-y, while volume of the packaging products declined by 2.8%...

Supreme Industries Ltd (SIL) is India's leading plastic processor, offering a wide range of plastic products. With 25 manufacturing facilities and a vast network of 2,950 channel partners, SIL operates in product categories like Plastic Piping System, Cross Laminated Films, Protective Packaging Products, Moulded Plastic Furniture, Material Handling Products and Composite LPG Cylinders.

After initial setbacks in Q1 - precipitated by massive destocking ahead of GST - when its overall plastic goods volumes shriveled 5%, Supreme has shown transformation of sorts for its overall plastic goods volumes surged 18.3% in Q2 followed by 19.2% in Q3. Save for packaging products business - bruised by capacity constraints of protective packaging - most other businesses have made noteworthy advances with the flagship plastic piping systems dispatches up by 17% and 24.9% in Q2 & Q3 and industrial products up by 17% and 16.9% respectively....

Supreme Industries Ltd (SIL) is India's leading player in plastic products, offering wide range of products, including Plastic Piping system, Packaging products, Industrial and Consumer products. Q3FY18 Revenue grew by 15% YoY, PAT grew by modest 3% due to decline in gross margins by 350bps YoY....

Q3 revenue grew 15% YoY on strong volume growth of 19% YoY, as Supreme Industries (SI) captured market share from unorganized players. We expect volume to grow 12-15% over next couple of years on demand driven by: (1) government initiatives increased spending on irrigation, water supply