Buy Supreme Petrochem; target of Rs 425: KRChoksey

KRChoksey's research report on Supreme Petrochem
Supreme Petrochem Limited (SPL) is India’s largest producer and global supplier of Polystyrene (PS) which accounts for ~96% of its total revenue. SPL possesses two state of the art production facilities at – Amdoshi-Wangani, Maharashtra and Chennai, Tamil Nadu.

Outlook

we value the Company at a P/E multiple of 15x and arrive at the target price of INR 425 which is a 24% upside from CMP of INR 344 and valuations are subject to re-rating depending upon improvement in operating efficiencies. We assign a BUY rating for the stock.

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