Buy Supreme Industries: target of Rs 2721: Sharekhan

Sharekhan is bullish on Supreme Industries has recommended buy rating on the stock with a target price of Rs 2721 in its research report dated October 22, 2021.

Broker Research

October 25, 2021 / 14:46 IST

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E. Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

26 Aug, 2025 12:21

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Sharekhan's research report on Supreme Industries

The company reported better than expected revenue growth for Q2FY2022 led by high realizations and healthy volume growth in plastic products. OPM came in below than expected on account of higher raw material costs. The company remain optimistic on the underlying demand and target to achieve 3-4 y-o-y volume growth for FY2022. Expect PVC prices to remain firm over next six months. Capex of Rs. 521 crores for FY2022 remains on track with new plants expected to be operational between January 2022 to May 2022. We expect infra, housing and government schemes to provide a long term sustainable demand environment.

Outlook

We retain a Buy on Supreme Industries Limited (SIL) with a revised PT of Rs. 2,721, factoring in upwardly revised estimates for FY2022-FY2024.

For all recommendations report, click here