Shares of Supreme Industries jumped over 5 percent in morning trade on BSE on August 21 after global brokerage firm Jefferies maintained a buy call on the stock and raised the target price by 5 percent.
Jefferies maintained a buy and raised the target price to Rs 1,480 from Rs 1,410.
Jefferies, as per CNBC-TV18, said the company's plastic pipes growth was supported by a higher value-added mix and new launches.
Jefferies believes the company's sturdy balance sheet acts as a strong moat, would help navigate through tough times.
The company is committed to a fresh CAPEX in view of medium-term prospects, Jefferies said.
Supreme Industries reported above-expected revenue of Rs 1,050 crore (down 27 percent YoY) in Q1FY21, with a 19 percent lockdown-led drop in volumes.
EBITDA margins declined less than estimated, by 54 bps YoY to 11.1 percent. EBITDA fell 30 percent while PBT fell 49 percent YoY. Management continued to refrain from giving FY21 guidance due to COVID-led demand uncertainty.
Shares of the company traded 3.64 percent up at Rs 1,345.80 on BSE at 10:50 hours.
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