Moneycontrol PRO
Upcoming Webinar:Watch a panel of experts discuss: Challenges of continuously evolving regulation for Cryptocurrency, on 7th July at 3pm. Register Now

Buy Supreme Petrochemicals; target of Rs 212 KRChoksey

KRChoksey is bullish on Supreme Petrochemicals has recommended buy rating on the stock with a target price of Rs 212 in its research report dated July 28, 2020.

July 30, 2020 / 06:29 PM IST
  • bselive
  • nselive
Todays L/H

KRChoksey's research report on Supreme Petrochemicals

For 1QFY21, Supreme Petrochem’s (SPL) revenue from operations decreased by 62.1% YoY (- 55.9+% QoQ) to INR 29,227 lakhs. Gross Profit Margin contracted 391bps/322bps YoY/QoQ to 11.7% in 1QFY21 from 15.6% in 1QFY20 & 14.9% in 4QFY20. EBITDA turned negative for the quarter and stood at INR 319 Lakhs vs INR 5,934 Lakhs in 1QFY20 & INR 3,918 Lakhs in 4QFY20. Company reported a Net Loss of INR 1,188 Lakhs, compared to Net Profit of INR 3,947 Lakhs in 1QFY20 & INR 2,351 Lakhs in 4QFY20.


Hence, we apply a higher P/E multiple of 17.5x (earlier 17.0x) on FY22E estimated EPS of INR 12.1/share and raise our target price to INR 212/share, an upside of 16.3% over the CMP. Accordingly, we reiterate a “BUY” rating on the shares of Supreme Petrochem Ltd.


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jul 30, 2020 06:29 pm
ISO 27001 - BSI Assurance Mark