The plastic goods sector in India contributes significantly to the economy, with a value of around USD 43.68 billion in 2023. It is expected to expand at a compound annual growth rate (CAGR) of 6.6% to about USD 68.33 billion by 2030, owing to increased demand across various sectors.
Supreme Industries Ltd has a market capitalization of Rs 66,420.44 crore, the shares were trading at Rs 5,228.85 per share, increasing around 0.02 percent as compared to the previous closing price of Rs 5.228.00 apiece.
Brokerage Recommendations:-
Jefferies, one of the well-known brokerages globally, gave a ‘Buy’ call on the stock with a target price of Rs 6,520 apiece, indicating a potential upside of 25 percent from Thursday’s price of Rs 5,228.85 per share.
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Target Rational:-
As per Jefferies, Supreme Industries also boasts of a pipe SKU count at 14,000 which is doubled from its peer Astral’s 7,000 SKUs. In the past, Astral Pipes has launched new categories to drive growth, while Supreme Industries’ growth has been organic during the same time.
Financial performance:-
Analyzing the company’s financial condition, revenue magnified by 11 percent from Rs 2,369 crore in Q1FY24 to Rs 2,636 crore in Q1FY25, during the same time frame net profit zoomed by 26 percent from Rs 216 crore to Rs 273 crore.
Ratio analysis:-
The company’s critical ratios show that the return on equity increased from 19.65 percent in FY22-23 to 20.93 percent in FY23-24, while the return on capital employed increased from 21.19 percent to 24.88 percent. The net profit margin (NPM) for fiscal year 23-24 is 9.50 percent.
Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 48.85 percent while Retail shareholders own a 14.60 percent stake in the company and Foreign Institutional Investors own a 25.05 percent stake.
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Company profile:-
Supreme Industries Limited engages in four business segments: plastic pipe goods, industrial products, packaging products, and consumer products. Its goods are divided into several categories, including Plastic Piping Systems, Consumer goods, Industrial Products, and Packaging Products.
Written by:- Abhishek Singh
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