Growth momentum continued in April-May as overall volumes rose 22% y-o-y, while plastic pipe volumes rose 27% y-o-y. Sales including other income were up 12% y-o-y. Management retained overall volume growth guidance of 20% y-o-y and plastic pipe system guidance of 25% y-o-y for FY2025. Average PVC prices rose ~9% in April-May 2024 as compared to Q4FY2024 average. It adds three new greenfield sites for expansions. Piping system to rise to 10.5 LTPA, plastic pipe system capacities to 8.35 LTPA by FY2025-end. Capex of Rs. 1500 crore including a carry-forward commitment intact.
OutlookWe retain a Buy on Supreme Industries Limited (SIL) with a revised PT of Rs. 6,850, increasing and rolling forward our valuation multiple to September 2026E earnings. SIL has appreciated ~35% since we upgraded it to Buy on April 26, 2024.
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