Supreme Industries Q3 Results Review — IDBI Capital Upgrades The Stock To 'Buy', Sees 20% Upside; Here's Why

Despite weak performance in 9M FY25, the brokerage continue to like Supreme Industries given its robust capacity, extensive distribution network and healthy balance sheet..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. .IDBI Capital Report.Supreme Industries Ltd.’s Q3 FY25 result was in-line with our estimate on net sales front, while margins disappointed. During the quarter the Plastic Pipe Systems business growth was adversely affected due to unfavorable PVC resin prices scenario and subdued demand from infrastructure. Also demand dynamics from agriculture and housing sector was muted, denting overall sales off-take. However, the company expects Q4 FY25 demand to be higher led by increased spending on infrastructure by the government. Also the company expects the overall margins to be in between 13-14% for FY25. Supreme Industries reported net sales of Rs 25 billion, marginally up by 2.5% YoY, while Ebitda came in at Rs 3.1 billion, declined by 18.5% over Q3 FY24. It reported net profit of Rs1.8bn, lower by 27% YoY. We roll over to FY27E earnings. Post recent stock price correction, potential upside from current level is meaningful. We upgrade the stock to Buy with a revised target price of Rs 4,820, assigning 40 times PER on FY27E..Click on the attachment to read the full report:.APL Apollo Tubes Gets 'Accumulate' As Dolat Capital Initiates Coverage After Q3 Results.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 — IDBI Capital Upgrades The Stock To 'Buy', Sees 20% Upside; Here's Why

Post recent stock price correction, potential upside from current level is meaningful, says the brokerage, revises target price.

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