HomeNewsBusinessBuy Supreme Industries; target of Rs 6850: Sharekhan

Buy Supreme Industries; target of Rs 6850: Sharekhan

Sharekhan is bullish on Supreme Industries has recommended buy rating on the stock with a target price of Rs 6850 in its research report dated July 22, 2024.

July 23, 2024 / 11:21 IST
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BUY
BUY

Sharekhan's research report on Supreme Industries

The company reported a marginally lower-than-expected consolidated revenue on account of lower realisation for Q1FY2025. Unfavorable product mix and weak demand in June led to a miss in OPM and net profit. Management has retained overall volume growth guidance of 20% y-o-y with plastic piping volume growth of 25% y-o-y for FY2025. Consolidate OPM is expected to be 15-15.5%. Capex commitment of Rs. 1,500 crore remains intact with expected overall capacity expansion to reach 1.25 million tonne and plastic piping to reach 1 million tonne.

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Outlook

We retain BUY on Supreme Industries Limited (SIL) with an unchanged PT of Rs. 6,850, considering sustainable long-term demand growth tailwinds.