Supreme Industries Ltd. share price target

Q4 revenue grew 23% YoY led by increased realisations (+6%) and volume recovery (+16%)

Several factors pressured volumes of Supreme's plastic piping products business last quarter as its of take plunged by 25.5%, resulting in overall volume de-growth of 18% in plastic goods. Distributors rushed to destock their stocks in a big way post October after PVC prices started to drop sharply. Discounts were also offered to dealers in January and December to liquidate stocks. Demand for PVC pipes was also affected by extended rainfall and supply chain disruptions in CPVC pipe system. Thanks to Covid -19 restrictions affecting reopening of hotels and other outdoor...

Q3FY22 Revenue grew by modest 6% on account of inventory destocking in channel, extended rain & volatility in input cost. EBITDA margin fell by 540bps YoY to 16.3% on account of higher...

Background: Supreme Industries Limited is India's leading plastics product manufacturer, offering a wide and comprehensive range of plastic products in India. The company operates in various product categories viz. Plastic Piping System, Cross Laminated Films & Products, Protective Packaging Products, Industrial Moulded Components, Moulded Furniture, Storage & Material Handling Products, Performance Packaging Films and Composite LPG Cylinders. Supreme Industries has 25 technologically advanced manufacturing facilities located at various places spread across the country. The company has built-up excellent...

Robust balance sheet with RoE & RoCE of 24% & 27% (five-year average), respectively, with stringent working capital policy Q3FY22 Results: Overall performance was in-line with our estimates. However,...

Q3 revenue grew 5.5% YoY led by high realisations (+31%) though volumes declined 18%

Supreme Industries (SI) reported below-expected Q3FY22 performance with blended volumes declining 18% and revenues increasing 5.5%, YoY. Operating margins were healthy at 16.3% (+20bps QoQ / -544bps YoY), in line with expectations, resulting in EBIDTA / PAT fall of 20.8% / 21.3% YoY respectively. Maintain ADD with share price target of Rs. 2323.

Q2FY22 Revenue & PAT grew by 40% & 31% YoY respectively, led by higher realisation and share of profit from associate. Higher input cost led to 680bps fall in gross margins, but strict cost controls limited the fall in EBITDA margin to 250YoY to16.1%. Overall demand scenario has significantly improved by revival in construction & improved consumer sentiments. Capacity expansion, expanding distribution reach and likely market share gains on account of industry consolidation, are key positives....

Background: Supreme Industries Limited is India's leading plastics product manufacturer, offering a wide and comprehensive range of plastic products in India. The company operates in various product categories viz. Plastic Piping System, Cross Laminated Films & Products, Protective Packaging Products, Industrial Moulded Components, Moulded Furniture, Storage & Material Handling Products, Performance Packaging Films and Composite LPG Cylinders. Supreme Industries has 25 technologically advanced manufacturing facilities located at various places spread across the country. The company has built-up excellent...