Jefferies has maintained buy rating on Supreme Industries in the long term and raised target price to Rs 1,530 from Rs 1,520. Shares of Supreme Industries ended flat at Rs 1,321.35 on Friday while BSE Sensex closed 226.79 points up (0.55%) at 41,613.19.
Company Financials
For the quarter ended 31-12-2019, the company has reported consolidated sales of Rs 1373.32 crore, up 8.06 % from last quarter Sales of Rs 1270.90 crore and down -2.63 % from last year same quarter sales of Rs 1410.41 crore . The company has reported net profit after tax of Rs 122.63 crore in the latest quarter.
The company’s top management includes Mr.B L Taparia, Mr.B V Bhargava, Mr.M P Taparia, Mr.N N Khandwala, Mr.R Kannan, Mr.R M Pandia, Mr.S J Taparia, Mr.Sarthak Behuria, Mr.V K Taparia, Mr.Y P Trivedi, Mrs.Rashna Khan, Ms.Ameeta Parpia. Company has Lodha & Co. as its auditors. As on 31-12-2019, the company has a total of 127,026,870 shares outstanding.
Investment Rationale
The brokerage has raised FY20 EPS estimate by around 3%. Multiple government initiatives such as boost to affordable housing, sanitation and “Nal Se Jal” Scheme could boost demand for plastic pipes, auguring well for Supreme Industries’ business, it being the market leader in PVC pipes in India, with pan-India manufacturing, 7,000 plus SKUs in Pipes and entrenched distribution, said Jefferies.
Source: Economic Times
