Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    

| More

Result Update: Supreme Industries Ltd - BUY - TP Rs.1205 - Kotak

Posted On: 2018-10-31 09:18:31

Supreme Industries Q2FY19 results was mixed bag. Results after adjusted for one off was ahead of estimates at topline, but was below our estimates in terms of margins.

Key Highlights

- The company reported 24.7% yoy growth in revenue which was driven by Rs Rs 808.5 mn contribution from sale of commercial real estate. Adjusted for the same, the revenue for the quarter grew by 17.1% yoy (Vs 15.9% yoy growth estimates). The adjusted revenue growth was driven by 5.2% growth in volume and 11.7% yoy growth in realization. The volume growth was below our estimates due to company's focus on high value products, low volume in cross laminated films and plant shutdown in packaging segment for maintenance.

- In core business, the EBITDA margin was at 13.3% and was below our estimates of 14.2% due to impact of rupee depreciation on imported raw materials, higher raw material prices due to rise in crude prices and lag effect in pass on of input cost. The company has reduced EBITDA margins guidance for FY19E by 100 bps to 14.5-15%.

Valuation & outlook

- The company is positive on demand of its products and expects value driven growth in the coming years. We have marginally reduced FY19E & FY20E estimates based on lower volume assumptions.

- The stock is presently trading at PE of 28.3x and 22.9x on FY19E and FY20E revised EPS of Rs 34.9 and 43 per share, respectively. We upgrade our rating on the stock to BUY (Vs Accumulate earlier) with revised target price of Rs 1205 (vs Rs 1324), valuing the stock at 28x (Vs 29x) on FY20E earnings.

Shares of SUPREME INDUSTRIES LTD. was last trading in BSE at Rs.990 as compared to the previous close of Rs. 986.75. The total number of shares traded during the day was 4142 in over 497 trades.

The stock hit an intraday high of Rs. 1024.85 and intraday low of 987.65. The net turnover during the day was Rs. 4147889.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

IPO Review - Computer Age Management Services - ICICI Securities

Company Update - EIH Ltd - ICICI Securities

Gladiator Stocks - Godrej Properties - ICICI Securities

Company Update - Dr Reddy's Laboratories - ICICI Securities

Gladiator Stocks: Pharma Thematic - ICICI Securities

Company Update - Housing & Urban Development - ICICI Securities

Covid Recovery Pulse - E-Way bill generation shows recovery signs with auto volumes flat - ICICI Securities

Quant Pick - UltraTech Cement - ICICI Securities

Lupin & Cipla - Positive News - Angel Broking

Sterling and Wilson Solar Ltd - 106.71 MW order win - Angel Broking

Dr. Reddy's Laboratories - Settles Revlimid litigation in US - ICICI Securities

Natco Pharma - Natco to launch first generic Revlimid - ICICI Securities

Solar Industries - Overseas and defence key to profitability - ICICI Securities

Federal Bank - Strengthening liability muscle; fees & charges revised upwards - ICICI Securities

HCL Technologies Mr. Jyoti Roy, DVP - Equity Strategist, Angel Broking Ltd


I-direct Instinct - Intellect Design Arena

P&G Health - Company Update - ICICI Securities

Relaxo Footwears - Mr. Amarjeet Maurya- AVP - Mid Caps, Angel Broking Ltd

Bata India - Mr. Amarjeet Maurya- AVP - Mid Caps, Angel Broking Ltd

Listing of Happiest Minds Technologies - Angel Broking

Dr. Reddy's Lab - Sep 17, 2020 - Angel Broking

VA Tech Wabag - Uphill task ahead; dilution at discount valuation - ICICI Securities

Polymer price tracker - PVC price hikes continue unabated - ICICI Securities

Brigade Enterprises - Resilience amid turbulence - ICICI Securities

Apollo Hospitals Enterprises - Recovering well from COVID-19 impact - ICICI Securities

NTPC - Sustainability targets encouraging - ICICI Securities

Gladiator Stocks - Oberoi Realty - ICICI Securities

Gladiator Stocks - Automotive Axles - ICICI Securities

Quant Pick - IDFC First Bank - ICICI Securities

Company Update - Jammu & Kashmir Bank - ICICI Securities

India Aviation Data - August 2020 - Angel Broking

Shree Cement - Higher volumes to offset lower prices - ICICI Securities

Apollo Hospitals - Q1FY21 Result Update - ICICI Securities

Refining & marketing - Oil price fall boosted GRMs, to push marketing margins up - ICICI Securities

Mr. Deepak Jasani, Head of Retail Research views on FICCI National Executive Committee Meeting with Reserve Bank of India Governor Shaktikanta Das

India trade deficit for August 2020 - Angel Broking

Chemcon Chemicals IPO - Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

CAMS IPO - Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

August 2020 Trade Data - Acuité Ratings & Research

Wim Plast - Q1FY21 Result Update - ICICI Securities

Company Update - Mishra Dhatu Nigam - ICICI Securities

Stock Tales - Laurus Labs - ICICI Securities

Stock Tales - Granules India - ICICI Securities

Stock of the day - Chalet Hotel - Target INR 200 - Angel Broking

Upgrade to ADD on Dr. Reddy's Labs - Improved visibility in the US business - HDFC Securities

Monetary Policy post CPI inflation numbers for August 2020 - Angel Broking

HUDCO - Q1FY21 Result Update - Angel Broking

Update on Steriscience pharma - Angel Broking

Covid-19 vaccine development by AstraZeneca - Angel Broking

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019