Supreme Industries Ltd. share price target

Background: 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%), 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...

Supreme Industries (SIL) recorded sales growth of ~12% YoY led by strong volume growth of ~6% YoY amid a challenging environment of demonetisation. The company's industrial, packaging and piping segment recorded volume growth of 27%, 5% and 4%, respectively. Realisation growth at ~5% YoY supported by rising proportion of premium product category in the portfolio. Contribution of the valueadded products categories increased from 36.74% to 37.76% in 9MFY17 led by the plastic piping and furniture division Benign raw material prices coupled with savings in other expenses...

Revenue grew 11.6% YoY to Rs11 bn, EBITDA margin improved by 107bps while adjusted PAT increased 20.1% YoY to Rs1,008 mn. The company guided for 8-10% volume growth in FY17 and stable (12-15%) volume growth in FY18, while long term EBITDA margin to remain in the range of 14.5%-16.5%. We expect organised players to see significant benefit from demonetization and GST...

Needless to get wonderstruck by sturdy rise in sale of plastic product volumes (+16.7%) last quarter for it merely portrays the shift in demand (from Q1 to Q2) due to change in accounting year last fiscal - total volumes in H1 grew by a sobering 8.3%. Most businesses - bar industrial products clung to existing trends as the flag-bearer plastic piping systems business reported 11% volume growth in H1, while the consumer products published a 14% rise. Deciphering course in industrial products business +4.5% volume growth in H1 as against -7.6% (adjusted) last fiscal would be barely bereft of risk for the buoyancy in its material handling business - 12% volume growth in H1 - fails to fully uncover the existing stress in its...

Background: 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%), 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...

Supreme Industries (SIL) recorded strong volume growth of ~17% YoY led by strong volume growth in the plastic piping segment and consumer product segment by 20% and 22% YoY, respectively. Volume growth was largely supported by a slight pick-up in infrastructure spending by the government and pre-festive demand of plastic furniture. Contribution of the value-added products...

Supreme Industries Ltd (SIL) reported a strong growth across segment led by strong volume growth and operational efficiency primarily in a seasonally weak quarter. Revenue increased 15% YoY to Rs8.8 bn, EBITDA margin expanded 351bps, EBITDA grew 50% while net profit increased 104% YoY to Rs5.8 bn. Robust operating profit growth was driven by favourable product-mix and...

Supreme Industries (SIL) recorded subdued volume growth of ~3% YoY led by lower offtake by dealers in Q1FY17, change in product mix and absence of revenue from the construction business. Plastic piping recorded volume growth of 6% YoY while volume growth of packaging products declined ~11% YoY. Contribution of value added products categories increased from 34.7% to 34.9% in Q1FY17 led by the plastic piping and furniture division Benign raw material prices helped in expanding the gross margin by...

Background: 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%), 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...

Supreme Industries Limited (SIL) disappointed us across all parameters in Q1FY17. It reported volume growth of just 3% while lower realization impacted revenue growth (down by 6.9% YoY). There was no revenue booking in the real estate project. The EBITDA margin dipped by 330bps YoY to 16.9%, led to a 22% YoY decline in EBITDA income. Consequently, adjusted profit decreased by 28% YoY (after adjusting share of profit from associates). The share of value-added products increased to 34.98% from 34.74% in Q1FY16. The management has reiterated its earlier guidance of 12-15% volume growth with an EBITDA margin of 14-14.5% for FY17. The company expects strong performance from coming quarters...