Supreme Industries shares jumped 6 percent in the early trade on April 29 after the plastic products maker recorded a 16 percent gain in revenue in the March quarter.
Supreme Industries reported a 1.3 percent fall in consolidated net profit at Rs 354.8 crore from a year earlier.
Revenue rose to Rs 3,007.9 crore from Rs 2,598.3 crore, rising almost 16 percent on a YoY basis.
At 9.17 am, Supreme Industries was quoting at Rs 4,585.9 on the NSE, up 5.5 percent from the previous close.
Follow our market blog to catch all the live updates
Supreme Industries posted robust volume growth, with the pipes division growing 41 percent on-year, beating Nuvama Institutional Equities estimate of 30 percent. Overall, volumes rose 33 percent YoY.
The volumes were driven by strong demand for infra pipes and a pickup in real estate demand—outpacing industry growth of 13.8 percent, reflecting robust market share gains, the brokerage said.
Given the robust demand outlook, particularly for pipes, management raised FY25E plastic pipes volume growth guidance to 25 percent and for volumes to 20 percent. The growth is likely to be supported by acceleration in capex to Rs 1,5oo crore, up from Rs 1,000 crore indicated earlier.
Nuvama retained its “buy” call and raised the target price to Rs 5,053 from Rs 4,764, which indicates an upside of 16.4 percent.
The firm is expected to continue benefit from increased affordability and volume revival stemming from the government’s infrastructural push, it said.
Over the past year, Supreme Industries shares have gained over 60 percent against a 23 percent rise in the frontline Nify index.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
