with a market valuation of 26,815.37 crore, Supreme Industries Limited is a large-cap industrial firm. With seven business units, Supreme Industries Limited is the leading plastic processing corporation in India. The company is engaged in a variety of plastic processing technologies including Extrusion, Rotational Molding (ROTO), Compression Molding, Blow Molding and Injection Molding. Additionally, the company provides its customers with plastic chairs, plastic furniture, molded plastic chairs, molded furniture, storage and material handling products, industrial molded products, protective packaging products, composite plastic products, plastic piping systems and petrochemicals . According to data from Value Research, Supreme Industries is a debt-free company, which may sound interesting to potential investors. However, what may seem even more appealing is the remarkable long-term returns of the stock, which have helped investors become millionaires.
Supreme Industries Share Price History
Today’s closing price of the shares of Supreme Industries Limited was 2,110.00 per share, a gain of 1.45% from the previous close 2,079.85. The stock price has achieved a multibagger return and an all-time high of 11,888.64%, which has climbed from 17.60 at the current market price as on January 1, 1999. Therefore, if an investor 1 lakh investment in Supreme Industries shares 23 years ago, today this amount will be 1.19 crores.
Over the last 5 years, the stock has increased by 81.23% and 92.76% in the last 3 years. The stock is down 1.35% over the past year, and has shed a 5.39% YTD so far in 2022. On NSE, the stock had touched a 52-week high. 52-week low of 2,693.90 on (19-Oct-2021) and 1,666.25 (23-Jun-2022) indicates that the stock is trading 21.67% down from the high and 26.63% up from the low at the current market price. The stock was seen trading above the Exponential Moving Average (EMA) for 5 days, 10 days, 20 days, 50 days, 100 days and 200 days at today’s closing price.
Q1FY23 Supreme Industries results
Revenue up 64% during the first quarter of FY13 from 2206 crores 1342 crore in Q1 FY22. In Q1FY23, the sales volume increased by 53% to 108,922 MT from 71,264 MT in Q1FY22. The company’s EBITDA for Q1FY23 climbed 21% to Rs. 269 crore from 222 crore in Q1FY22, while EBITDA margin declined to 12.16% from 16.49% in Q1FY22. The company has recorded profit after tax (PAT) of 156 crores for Q1FY23, as opposed to 125 crore for Q1FY22, representing a YoY growth of 24.80%. For the quarter ended June 2022, the company was still debt free and had a cash surplus of Rs. 533 crores.
Should you buy Supreme Industries Limited (SIL) shares?
Research analysts at broking firm ICICI Securities have given a buy rating on the stock and recommend a stop loss of 1,878.00, and set a target price. 2,340.00. Analysts set a target period of 3 months for the stock and said in a note that “Consumer discretionary stocks are seen to resume their primary upward trend after a nine-month corrective decline. Inside we remain constructive on Supreme Industries as it has generated a breakout above the descending channel which covers the entire decline since October 2021. This signals a resumption of the upside. The current decline in crude oil prices also provides support to the bullish trend, thus providing a good entry opportunity with a favorable risk reward.”
He further added that “we expect the stock to move higher and towards January 2022 highs”. 2340 in the coming months as this is a 61.8% retracement of the overall decline ( 2693-1667). Buying demand has emerged from the recent support zone 1650-1750 as this is the confluence of the 100 week EMA (currently 1894) and 80% retracement of CY21 rally ( 1600-2693). The weekly 14 period RSI is in an uptrend and a divergence from its nine period average is observed, thus confirming the positive bias.”
“In Q1FY23, SIL witnessed strong demand revival in its piping segment from both agriculture and housing sector amid a sharp fall in PVC prices (down 32% from its peak in April 2022). We believe that the piping segment of SIL will report a CAGR of 19% in FY22-24E, supported by a revival in pipe demand from agriculture, housing and infrastructure. Government sponsored schemes like Nal Se Jal Mission, Swachh Bharat Abhiyan, Swachhta, Affordable Housing We believe can be the major catalysts for the volume growth of SIL. The EBITDA margin for FY23 is likely to be in the range of 14.5-15%, given the moderation in PVC prices. We model over FY 2012-24E revenue, earnings 11%, CAGR of 7%, led by Piping segment revenue CAGR of 12%. Supreme Industries balance sheet remains strong with net cash balance 526.4 crore on book and ROCE in FY22, ROE ~26%, ~25% respectively, said research analysts at broking firm ICICI Securities.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.