Supreme Industries Ltd. share price target

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...

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...

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...