HomeNewsBusinessStocksBuy Supreme Petrochemicals; target of Rs 814: KR Choksey

Buy Supreme Petrochemicals; target of Rs 814: KR Choksey

KR Choksey is bullish on Supreme Petrochemicals has recommended buy rating on the stock with a target price of Rs 814 in its research report dated January 25, 2022.

February 28, 2022 / 14:44 IST
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KR Choksey's research report on Supreme Petrochemicals

For Q3FY22, Supreme Petrochem’s (SPL) revenue increased by 39.4%/8.8% on YoY and QoQ basis to INR 12,960 mn. EBITDA increased by 27.4% QoQ but declined by 6.3% YoY to INR 2,242 mn. EBITDA margin contracted by 844 bps YoY and grew by 252 bps QoQ to 17.3%. Net Profit stood at INR 1,646 mn, down by 4.1% YoY and grew by 29.5% QoQ. The margins declined by 575 bps YoY and grew by 203 bps QoQ.

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Outlook

We value the stock at 7.97x on its FY24E EPS of INR 102.1/share, which yields a target price of INR 814/share (unchanged), an upside of 17% over the CMP. Accordingly, we maintain our “BUY” rating on the shares of Supreme Petrochem Ltd.