• Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
Monday, February 6, 2023
No Result
View All Result
SUBSCRIBE
The Outlooker
27 °c
Delhi
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
No Result
View All Result
The Outlooker
No Result
View All Result
  • National
  • Politics
  • Opinion
  • Business
  • Science
  • World
  • Health
Home Business

Analyst Corner: Supreme Industries in sweet spot, ‘buy’ with TP of Rs 1,995

by The Outlooker Web Desk
December 10, 2020
in Business
0
Analyst Corner: Supreme Industries in sweet spot, ‘buy’ with TP of Rs 1,995
1.8k
SHARES
12.9k
VIEWS
Share on FacebookShare on Twitter

SIL surprised positively in Q2FY21 with mere 2% y-o-y volume decline.

Supreme Industries’ (SIL) management’s outlook, during our recent interaction, appeared more positive vis-a-vis previous quarter. Key highlights: SIL has sharpened focus on market share by sharing inventory gains with distributors, among others; Reduced competitive intensity in packaging is aiding the company’s margin; Small players are facing multiple challenges, including availability of raw material and stretched working capital given volatility in prices.

Factoring the strong growth and outlook, we revise up F21/22/23E EPS 26%/13%/12% and the target to 36x (from 33x). Upgrade to ‘buy’ with revised TP of Rs 1,995. We believe SIL is in a sweet spot to gain additional market share from unorganised players.

SIL surprised positively in Q2FY21 with mere 2% y-o-y volume decline. Furthermore, in October and November, the company sustained healthy volume and value growth riding swift market consolidation as unorganised players continue to face numerous challenges–unavailability of raw material and spike in working capital (cumulative 22% price hike in Q3FY21, post 19% increase in Q2FY21), not to mention delays in pass-through by large organised players (three weeks versus one week earlier). All of these have worsened the plight of smaller players.

The company’s margin expanded 500bps y-o-y in Q2FY21, led by operating efficiency, savings in other expenses, inventory gains and higher share of value-added products (up 9% y-o-y ). While SIL is passing on inventory gains partially to gain market share (more sustainable in nature), some of the cost savings and a rising share of value- added products are likely to sustain. Management is confident of higher margin sustaining in Q3FY21. It also highlighted that PVC prices are unlikely to fall before February 15, which will continue to benefit large players.

We believe SIL’s margin is trending up sharply given waning competitive pressure in the packaging business and its strong positioning in plastic pipes.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

The Outlooker is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

The Outlooker Web Desk

The Outlooker Web Desk

Next Post
Analyst corner: ICICI Bank our top idea in banks, revised FV at Rs 600

Analyst corner: ICICI Bank our top idea in banks, revised FV at Rs 600

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Rahul Gandhi Expresses Grief Over Loss Of Lives
National

Rahul Gandhi Expresses Grief Over Loss Of Lives

February 6, 2023
2 Soldiers Die As T-90 Tank Barrel Explodes During Firing Exercise In UP
National

In 2022-2023, Defence Expenditure Was 14.08% Of Expenses: Centre

February 6, 2023
“Who Is Shah Rukh Khan?” Assam’s Himanta Sarma When Asked About Pathaan
National

Teenage Pregnancy Ratio In State Quite Alarming, Says Assam Chief Minister Himanta Biswa Sarma

February 6, 2023
Congress Tripura manifesto promises old pension scheme, free 150 units of electricity
Politics

Congress Tripura manifesto promises old pension scheme, free 150 units of electricity

February 6, 2023

Connect with us

No Result
View All Result

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020

Category

  • Artistic
  • Business
  • Crypto
  • Design
  • Entertainment
  • Fashion
  • featured
  • Food
  • Gaming
  • Health
  • Human
  • Lifestyle
  • Movie
  • Music
  • National
  • Opinion
  • Politics
  • Science
  • Spaces
  • Sports
  • Tech
  • Travel
  • Uncategorized
  • World

Recent Posts

  • Rahul Gandhi Expresses Grief Over Loss Of Lives
  • In 2022-2023, Defence Expenditure Was 14.08% Of Expenses: Centre
  • Teenage Pregnancy Ratio In State Quite Alarming, Says Assam Chief Minister Himanta Biswa Sarma

About Us

The Outlooker

The Outlooker is your source of authentic, hand-picked news, stories, analysis from India & the World.

  • Terms Of Service
  • Privacy Policy
  • About us
  • Submit your story
  • Contact

© 2019-2021 The Outlooker. All rights reserved.

No Result
View All Result
  • Home
  • Politics
  • World
  • Business
  • Science
  • National
  • Entertainment
  • Gaming
  • Movie
  • Music
  • Sports
  • Fashion
  • Lifestyle
  • Travel
  • Tech
  • Health
  • Food

© 2019-2021 The Outlooker. All rights reserved.