SIL's Q4FY20 revenue de-grew by 7% YoY, on account of shutdown due to covid19 impact. But PAT grew by 4% YoY on account of higher operating margin. EBITDA margin improved by 590bps YoY to 19.1% led yearly discounts from RM supplier and better product mix. Going ahead, we expect construction demand to be muted in the near term. However, led by gradual improvement in rural & agriculture demand, we expect revenue growth to pick-up from H2FY21E. We believe that near term weakness has already factored in stock prices. Given SIL strong brand recall, distribution network and healthy margin profile, we continue to remain constructive. We value SIL at P/E of 28x with a target price of Rs1,126 and recommend to Accumulate.
Shares of SUPREME INDUSTRIES LTD. was last trading in BSE at Rs.982.6 as compared to the previous close of Rs. 978.65. The total number of shares traded during the day was 546 in over 123 trades.
The stock hit an intraday high of Rs. 991.85 and intraday low of 977.55. The net turnover during the day was Rs. 537585.