Supreme Industries Ltd. share price target

Q1FY18 revenue and margin was marred by destocking, inventory loss and lower contribution from value added products. Capacity addition of 20KT-25KT every year, higher export contribution due to entry in new geographies and new product launches in fittings and film segment would continue to drive robust growth. Company guided for 12% sales growth in FY18 (~19% in 9MFY18) and EBITDA margin of 15%-15.5%. We are cutting FY18 EPS by 7% while keeping FY19 numbers largely unchanged. Therefore, we are slightly cutting our TP to Rs1,190. Maintain ACCUMULATE....

Affected by destocking by distributors of plastic piping, furniture and cross laminated films ahead of GST implementation, Supreme's post tax earnings slid 26.3% to Rs 75.29 crs ($11.7m) in Q1 compared to Rs 102.15 crs ($15.3m) in the same quarter a year ago. Intensity of demand deferment manifested itself in overall sales volumes, which tumbled 5% to 92916 mt, the lowest June quarter reading since 2014. Both plastic piping system and consumer products bore the brunt of 'one tax' regime for their volumes shriveled by 7% and 8% respectively. Yet largely...

De-stocking of inventories at dealers level had put a dent on volume of Supreme Industries (SIL) by 5% during Q1FY18. Piping, packaging and consumer products category had impacted largely (due to GST transition) wherein segment sales declined by 3%, 7% and 4% YoY during Q1FY18. Industrial product segment sales recorded a growth of 10% YoY mainly due to better demand from consumer appliances industries. Contribution of value-added products categories decreased from 35% to 32% in Q1FY18....

Supreme Industries (SI) is a plastic product manufacturer and the largest plastic processor in India, processing over 0.28mn MT annually. Company has four business verticals i.e. Plastic Piping (52%), Packaging Products (21%), Industrial Products (19%) and Consumer Products (8%). SI has 22 manufacturing plants situated across India. Company enjoys a significant market share across its business verticals; Plastic Piping (9.48%), Indus trial 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...

Revenue increased by 15.82% to Rs. 1282.63 Cr in Q4FY17 when compared to the previous quarter. Also it rose by 6.86% when compared with Q3FY16.

Supremes FY17 revenue at Rs 45 bn was ~8% below estimate due to tepid volume growth at 4% (8-10% guidance in Jan'17). Contrary to management expectations of volume recovery in Q4, effect of demonetization was prolonged with ~10% volume decline in piping segment (55% of rev)

Supreme Industries (SIL) recorded sales growth of ~7% YoY led by strong revenue growth of 18% and ~20% YoY in packaging and industrial segment, respectively. Piping segment revenue growth at 6% was lower than our estimate mainly due to sharp volume decline (from agriculture segment) due to demonetisation. Contribution of value-added products categories increased from 36.63% to 37.54% in FY17 led by the plastic piping and furniture division Savings in employee expenses (down 80 bps) and change in product...

Drop in Volumes; but Supported by Growth in Realisations: Supreme Industries Ltd (SIL) witnessed a YoY growth of 6.9% on the consolidate basis to Rs. 12826 Mn in Q4FY17 from Rs. 12003 Mn in Q4FY16. Packaging products, second major segment of the company, registered highest growth of 19.6%during the quarter. Plastic piping product, a top contributor, witnessed a growth of 1.7%, with industrial, consumers and othersregistering a growth of 9.8%, -5.3% & 22.6% respectively.

overall volume declined 6% YoY to 95,870mt due to 10% fall in plastic piping division. However, due to strong realisation growth of ~13%, revenue increased 6.9% YoY to Rs12.8 bn. Further, higher sales of value products and lower sales of low margin agriculture product expanded EBITDA margin by 100bps YoY (223bps QoQ) to Rs2.4 bn which translated to 18%...

Supreme Inds (SI) Q3FY17 revenue at Rs 11 bn (up 11% YoY) was inline with estimate. While volume growth of 6% YoY for the quarter was lower than expected, realization growth mitigated the impact. SI managed the impact of demonetization well by extension of credit to dealers (debtor days at 25 days v..