Supreme Industries Ltd. share price target

Supreme Industries' Q2FY19 results were a miss (after adjusting to construction income) owing to lower than expected volume growth and price cut in packaging segment. Total volume grew by just 5% YoY to 83,173MT while realization increased by 13% YoY in Q2FY19. The company realized Rs808 mn from sale of 38,718sq ft of its Andheri Premises which inflated EBITDA/PAT by Rs531/346 mn respectively. Adjusting to this, EBITDA/PAT grew by 10.7%/2.6% YoY to Rs1,594/727 mn in Q2FY19. The management lowered its volume growth guidance to 10% for FY19 (7% in H1FY19) from 10%-12%. The management maintains its capex guidance of Rs3.5-4 bn for FY19....

Supreme Industries' Q2FY19 performance was led by ~12% YoY increase in realisation mainly due to a thrust on changing the mix towards premium product categories. On the segment front, except packaging products, the other three segments saw revenue growth in the range of 12-37% YoY. The packaging product category recorded a muted performance in Q2FY19 mainly due to lower volume offtake of cross laminated products owing to a delay in the festive season and absence of discounts. The management has...

Supreme Industries: One of the best plays on Building Materials, Capacity additions to drive topline growth, Strong balance lends comfort; Mahindra & Mahindra: Major beneficiary from growth in rural India, New product launches to improve volumes, Robust demand in the tractor segment

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....

ICICI Securities Ltd | Retail Equity Research Supreme Industries reported a satisfactory performance on a lower base in Q1FY19 with volume, realisation growth of ~8%, ~7%, respectively. The volume growth was largely driven by industrial and consumer product categories that grew 23% and 15%, respectively. Piping segment volume growth at ~5% was largely hit by a slow pick-up in demand from the agriculture segment. On the margin front, a price hike to offset higher raw material prices coupled with...

Sector: Plastic /Mid-Cap | Earnings Update 1QFY19 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' Q1FY19 results were a miss due to lower than expected volume growth and increased cost pressure. Revenue was up 15.8% YoY to Rs13.5 bn owing to 8.4% volume growth to 99,905mt. Plastic piping/Packaging products/Industrial products/Consumer products volume grew by 5%/10%/23%/15% and value wise it grew by 12%/9%/37%/23% respectively. The management lowered down its volume growth guidance to a 10%-12% from 12%15% with an EBITDA margin of 15.5%-16%. We cut EBITDA/PAT estimates by 4%/10% for FY19 and FY20E both to factor in higher cost and increased tax rates. We cut our TP to Rs1,322 (32x FY20E) from Rs1,437. Maintain ACCUMULATE....

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....

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.