Supreme Industries Ltd. share price target

company with a presence in four major segments including piping systems, packaging products, industrial products & consumer product category with revenue contribution of 63%,18%, 12% & 7%, respectively....

Strong Q2 revenue growth led by high realisations (+38% YoY) and healthy volumes in plastics (+9% YoY)

Asian Paints is a market leader in the decorative paint segment having ~2.3x more dealers (~70,000) than the No.2 player. There are structural long term demand drivers of decorative paint such as reduced repainting cycle and Housing for all, that makes it a long term growth story...

SI's Q1 volumes slipped 22% YoY as agri pipe demand slowed, but pass-along of higher RM prices aided consolidated revenue growth of 27% YoY

Much of the growth in revenues (45.7%) in Q4 bear little resemblance to underlying growth for Supreme's plastics goods volumes grew by a measly 7.8% with dispatches of the flagship plastics piping products business declining by 1.7% (its revenues grew by some 44%) as the company amassed market share from unorganized players. Revenues of...

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...

Q4FY21 Revenue & PAT grew by 46% & 284% YoY respectively, led by higher operating profit and share of profit from associate. EBITDA margin improved by 530bps YoY to 24.5% led by better product mix and inventory gains (Rs.80-100cr) . With revival in construction activities and pick-up in consumption spending, overall demand scenario is expected to be strong. Investment in new capacities, focus on new products, expansion of...

EBITDA margin at 24.5% during Q4 is one of the highest in the history of Supreme backed by inventory gains amid rise in PVC prices. We believe the inventory gains are limited till FY21 and EBITDA margin will peak out from its high with ease in PVC prices, going forward. The management has guided for EBITDA margin of ~17% (~200 bps higher than its last five years average) backed by an improved product mix. Valued added product...

Supreme Industries Ltd.'s (SIL) Q4FY21 result was a beat to our as well as consensus estimates on all parameters. The company reported net sales of Rs20.8bn, increased by 45.7% YoY, while EBITDA came in at Rs5.1bn, a robust growth of 86.4% over Q4FY20. It reported net profit of Rs4.5bn, higher by 284% YoY. SIL reported inventory gain of Rs2,000mn in current quarter, which resulted in superlative performance of the company. The management remains committed to new products launches and capacity expansion to strengthen further market share in the domestic market as well as increase export sales in future. We have revised our net sales/PAT estimates by...

Supreme Industries' (SI) Q4FY21 revenue grew 46% YoY, aided by an 8% rise in volumes off a tepid base.