Supreme Industries Ltd. share price target

Supreme Industries' 3QFY18 net sales came at Rs12,783mn (our est. Rs13,012mn) as against Rs11,074mn during 3QFY17, registering growth of 15.4%. Share of overall Value added products was 40% as against 43% in 3QFY17. Volumes grew by 19.2% from 81,183MT to 96,737MT in 3QFY18. Volumes of all the segments Plastic piping products/Packaging products/Industrial Products/ Consumer Products grew by 25%/3%/17%/13% respectively. Value-wise all these segments grew by 19%/1%/33%/17% respectively. Gross margins remained under pressure and declined by 390bps from 38.6% to...

Disruption due to GST and RERA implementation hit industry-wide PVC pipe volumes, with the demand for PVC down ~6% in H1FY18 for the first time in 2 decades.

Q2FY18 result was marred by lower margins from Plastic products business (contributed 54% of revenue) amid strong overall volume growth of 18% YoY. Industrial and Packaging segment reported robust volume and value growth. Capex plans revised upwards to Rs4.5 bn from Rs3.5 bn earlier for capacity expansion at plastic piping & Industrial segment and for working capital requirements. The company maintained its guidance of 12% volume growth (19%...

Supreme Industries Q2FY18 results were ahead of our estimates led by strong volume growth across most of the segments. The company reported 19.5% yoy growth in revenue backed by 18.3% yoy growth in total volume. The volume growth in the quarter was led by aggressive discount policy adopted by the company particularly in agri-based PVC pipes segment. The company's piping segment grew by 17% yoy despite 6% decline in the PVC pipes industry. Aggressive pricing and inventory loss resulted in 160 bps yoy decline in EBITDA margins which stood at 13.6% in Q2FY18. The company expects EBITDA margins...

ICICI Securities Ltd | Retail Equity Research Supreme Industries reported a mixed set of numbers wherein revenues witnessed healthy growth of 19.5% while operating margins contracted during the quarter. With the visible shift from the unorganised industry as organised players hold back price hikes, Supreme Industries reported strong volume growth of 18% YoY during the quarter. On the back of higher trade discounts, packaging product category recorded strong volume growth of ~30% YoY....

Near-term disruption in business on GST implementation was visible starting last week of May. Q1FY18 volume dropped 5% YoY, while EBITDA margin contracted 320 bps YoY to 13.7% due to (1) inventory loss, (2) lower share of value added products and (3) higher fixed expenditure. Lower profit from an as

Revenue fell by 9.43% to Rs. 1161.66 Cr in Q1FY18 when compared to the previous quarter Revenue fell by 9.43% to Rs. 1161.66 Cr in Q1FY18 when compared to the previous quarter

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...