Supreme Industries Q4 Results Review - Healthy Volume Growth Momentum Continue: Prabhudas Lilladher

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Prabhudas Lilladher Report.We tweak our FY24/FY25 earnings estimate by -1.1%/+2.2% to factor in-higher volume growth guidance of 15% andreduction in Ebitda margin guidance from ~15% to 13.5%-14%. Supreme Industries Ltd. delivered healthy performance with volume growth ahead of expectations, mainly led by plastic pipe segment (up 16.4% YoY on higher base) and improvement in Ebitda/kg at ~Rs 33/kg (versus Rs 22 QoQ and Rs 30 YoY). We believe Supreme Industries is structurally placed to capture plastic processing industry demands given- healthy capacity expansion in different geographies,benefit of local manufacturing (~3.5% logistic cost saving) to be passed-on to channel for driving volume growth,wide pan India distributors n/w of 4500 channel partners, with 1443 distributors for pipe business; additional 100 in FY24, andcash surplus of Rs 7.4 billion for funding expansion plans. We estimate FY23-25E sales/Ebitda/profit after tax compound annual growth rate of 12.5%/19.2%/18.0%, with volume CAGR of 13.1% and Ebitda margin improvement of 160 bps..Click on the attachment to read the full report:.Supreme Industries Q4 Results Review - Upbeat Performance: ICICI Direct.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Supreme Industries Q4 Results Review - Healthy Volume Growth Momentum Continue: Prabhudas Lilladher

Reported all-time high quarterly sales volume of 147,414 million tonne (up 14.6% YoY).

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