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:

Maintain ADD on Indian Oil Corporation - High inventory losses drag earnings - HDFC Securities

Maintain BUY on Cholamandalam Investment & Finance - A mostly good show - HDFC Securities

Maintain ADD on BSE - Fighting its way back - HDFC Securities

Maintain ADD on Motilal Oswal Financial Services - In-line performance - HDFC Securities

Maintain BUY on Sobha - A smooth ride with few bumps - HDFC Securities

Banking Sector Credit Trends Report - Growth slows, as expected - HDFC Securities

Maintain ADD on Sun Pharma - Cost savings drive the quarterly beat - HDFC Securities

Auto Sector Performance - July'20 - Angel Broking

Sector Thematic on Indian Gas Sector - Looking beyond the pandemic - HDFC Securities

ADD on Max Financial - Lower margins despite higher protection - HDFC Securities

Maintain BUY on Mastek - Changing orbit - HDFC Securities

Mantain REDUCE On Dabur - In-line 2Q, slight beat in domestic volume - HDFC Securities

CreditAccess Grameen - Q1FY21 - YES Securities

ADD on Torrent Pharma - Resilient performance - HDFC Securities

BSE Limited - Pricing pressure remains a challenge - ICICI Securities

Kansai Nerolac Paints - Better-than-expected trajectory in decorative paints -

VA Tech Wabag - High receivables, low margins to impact earnings - ICICI Securities

CreditAccess Grameen - Customer activation trend shows resilience - ICICI Securities

Tata Chemicals - Q1FY21 Result Update - ICICI Securities

VST Industries - Q1FY21 Result Update - ICICI Securities

ADD on Navin Fluorine International - Commendable performance - HDFC Securities

Whirlpool of India - Valuations belie outlook; risk-reward unfavourable - ICICI Securities

Kansai Nerolac - Q1FY21 First Cut - ICICI Securities

Exide Industries - Q1FY21 First Cut - ICICI Securities

Monthly Auto Volumes - July, 2020 - ICICI Securities

Cholamandalam Investments and Finance Company Ltd - Q1FY21 Result Update - YES Securities

Mahindra logistics - Q1FY21 Result Update - YES Securities

Bluedart Express - Q1FY21 Result Update - YES Securities

Tata Motors - Cost improvements reassuring - ICICI Securities

Godrej Agrovet - Deflation in input prices leads to higher margin - ICICI Securities

TeamLease Services - Worst of slowdown impacts Q1 revenues; margin execution steady - ICICI Securities

Mahindra Logistics - Resilient in challenging times - ICICI Securities

UPL - Synergy benefits on track - ICICI Securities

Dalmia Bharat Sugar - Q1FY21 Result Update - ICICI Securities

Zydus Wellness - Q1FY21 Result Update - ICICI Securities

Thyrocare Technologies - COVID tests and cost control aided margins - ICICI Securities

Blue Dart Express - Weakness in operating metrics to persist - ICICI Securities

Cholamandalam Investment and Finance - Lower provisions a surprise; strong focus on sustainable cost efficiencies - ICICI Securities

Voltas - Gearing up for the next leg of growth - ICICI Securities

Tata Communications - New normal deserves an upgrade - ICICI Securities

Dr Lal Pathlabs - Multiple growth levers - ICICI Securities

Sun Pharmaceutical Industries - Operationally strong performance - ICICI Securities

Solar Industries - Navigating a weak external environment - ICICI Securities

Polymer price tracker - PVC prices on a roll, again - ICICI Securities

JSW Energy - High FCF increases importance of dividend policy and growth initiatives - ICICI Securities

State Bank of India - Q1FY21 Result Update - ICICI Securities

Relaxo Footwears Ltd - Company Update - ICICI Securities

Sun Pharmaceutical Industries - Q1FY21 Result Update - ICICI Securities

Tata Communications - Q1FY21 Result Update - ICICI Securities

Auto Sales Numbers - July 2020 - Acuité Ratings & Research

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

disclaimer copyright © 2005 - 2019