Sharekhan has given Buy recommendation for Supreme Industries with a target price of Rs. 2500 in its research report issued on Apr 29, 2022
Sharekhan’s research report on Supreme Industries
Supreme Industries reported better-than-expected consolidated revenues for Q4FY2022 led by strong volume growth. OPM were affected by product mix. A decline in PVC prices and expectation of it being range bound in FY2023 is expected to support demand growth. The management expect minimum 15% y-o-y volume growth with 15-15.5% OPM for FY2023. Capex of Rs. 700 crore including carry-forward commitments majorly to augment plastic piping capacities highlights underlying strong demand growth expectations.
We retain a Buy on Supreme Industries Limited (SIL) with an unchanged PT of Rs. 2,500.