Supreme Industries Q3 Results Review - Decline In ASP Dents Performance, Maintain 'Reduce': Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Supreme Industries Ltd. delivered robust volume growth of 14% YoY and 15% QoQ, wherein pipes volumes (77% of total volumes) increased by 17% YoY and 19% QoQ (largely in-line with our estimate) backed by healthy demand across plumbing and infra segment. However, correction in PVC resin prices during the quarter lead to contraction in average selling price from Rs 166 in Q2 FY24 to Rs 155 in Q3 FY24 wherein pipes ASP stood at Rs 135/kilograms as compared to Rs 147 in previous quarter..Therefore, overall revenue increased by 6% YoY and QoQ and pipes revenue (67% of total) grew by 9% YoY and QoQ. Volume growth of other segments improved marginally by 5% YoY and 3% QoQ. Owing to contraction in ASP, the Ebit/Kg of pipes declined sequentially from Rs 19.5/kg to Rs 17.4/kg. Overall Ebitda margins were stable on QoQ basis at 15.5% and absolute Ebitda grew by 6% over similar period..We remain positive on Supreme Industries’ growth over FY23-FY26E owing to sturdy demand from real-estate and infra segment and with expected pick-up in rural segment. Hence, we expect revenue/Ebitda/ profit after tax growth of 12%/18%/21% over FY23-FY26E. We continue to value the stock at price/earnings (times) of 35 times on FY26E earning per share (stand) and maintain our 'Reduce' rating on the stock with a target price of Rs 3,709..Click on the attachment to read the full report:.Kotak Mahindra Bank Q3 Results Review - Margins Surprise On The Upside, Upgrade To 'Buy': Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Supreme Industries Q3 Results Review - Decline In ASP Dents Performance, Maintain 'Reduce': Yes Securities

Supreme Industries revised their pipe volume growth guidance from 28% to 30% for FY24 and for FY25 company will grow by 12-15% in pipe segment.

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Supreme Industries Q3 Results Review - Decline In ASP Dents Performance, Maintain 'Reduce': Yes Securities

Supreme Industries revised their pipe volume growth guidance from 28% to 30% for FY24 and for FY25 company will grow by 12-15% in pipe segment.

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