Anand Rathi has given Buy recommendation for Supreme Industries with a target price of Rs. 2546 in its research report issued on May 04, 2022

Anand Rathi’s research report on Supreme Industries

Supreme Industries reported mixed Q4 FY22 results: strong revenue growth and weak margins. Revenue and earnings were respectively 17% and 13% ahead of our expectations. This was due to higher volume off-take despite margins being lower than anticipated. Revenue grew 23% y/y, owing to volume being 16% higher y/y to 128,607 tonnes, and blended realisations improved 6% y/y to Rs.207,412 a tonne.

Outlook

We maintain our Buy rating on the stock, with a lower price target of Rs2,546 based on 27.5x FY24e earnings.

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