The results were actually a tad below expectation...expected full-year eps was around 70 which the company failed to do, mainly because of slower than expected growth in the main plastics business and practically no sale of the real estate...also, tje last quarter is their best in the year and so sequential quarterly numbers are likely to disappoint in the near future..

However, the story still remains strong..real estate will be sold and by the look of the management it will pay a one-time dividend which should be a neat payout...the company otherwise is doing well...

At a PE of 10 (trailing), it is to my mid fully valued and should be bought only by long term investors...it is unlikely to go up fast anytime soon...

Well, there businesses are different...Sintex's primary growth driver is their monolithic construction business...Also, Sintex by virtue of its tanks( which in fact comprises of around only 5% of sales) is better known amongst both retail and institutional investors...

PE for Sintex is around 17-18 and that of Supreme is 10....so valuation wise the market is definitely giving a premium to Sintex...

For both I would expect a 25-30% growth in the next 2-3 years..

Disclosure: Supreme is 22% of my portfolio and Sintex is 10%...so, my views can be biased with endowment effect :-)

looks something wrong with the ID.. posting messages left right and centre on every board..

Originally posted by Market Maniac Supreme is a better co.

My Notes from Annual Report 2010

* The company expects to achieve 20%+ volume growth per year in medium term
* No significant change in product wise share of revenue
* Crisil has upgraded the rating outlook from A+Stable to A+Positive
* 1, 3 and 5 year sales growths are: 20%, 17.76% and 18.45% respectively
* 1, 3 and 5 year PAT growths are: 48.6%, 42.39% and 43.66% respectively
* Last 3 years average RoCE is 33%
* Last 3 years average RoE is 34%
* Long term Debt-Equity ratio has reduced from 1.02 to .49. This should reduce even more with the increased sale of the commercial building space.

PLASTIC PIPING SYSTEMS
* India's capacity for PVC resin is 67% of demand. Rest is imported.
* Kanpur plant's capacity to be expanded from 8000 tons p.a to 15000 tons p.a. Plant is to be commissioned by Dec'10
* Newly launched Lifeline CPVC grew more than 120%
* "Aqua Gold" plumbing system for cold water has grown by over 50%. It is successfully replacing GI pipes.
* Expects the renovation market to drive demand as more buildings undergo renovation
* Polyethylene pipes have grown over 100% by volume
* Exports have reduced by 9.21%

FURNITURE
* Growth of 26% by value and 23% by volume - indication of improved pricing due to better branding
* Planning new factory in Andhra Pradesh - plan to start production by end of 2010
* Plans to increase exclusive franchise showrooms from 209 to 300 across India in 2010

INDUSTRIAL PRODUCTS
* Bagged all plastic body washing machine project from Whirlpool - production to begin by Sep'10
* Bagged order for manufacturing Tata Swach water purifiers from Tata Chemicals
* Expanding capacity in Noida,Gadegaon and Durgapur to meet Tata Swach requirements
* Volume growth of 25% and value growth of 20% - indicative of pricing pressure

PACKAGING PRODUCTS
* Volume growth of 24%
* New 5 and 7 layer lines are operating at 100% utilization
* Expanding capacity of the 7 layer line by over 50%+ (from 6000 tons to 9500 tons)
* Expecting a growth of 25% and expecting to reach full utilization by June 2010
* The Khopoli plant unit was the first and only multilayer packaging company to receive the BRC (British Retail Consortium) certificate to export to European markets.
* Very good traction seen in the construction and insulation business
* Growth in the insulation division impacted due to unavailability of skilled labour

CONSTRUCTION
* One block of the "Supreme Chambers" at Andheri has already been sold for 20.5 crs and negotiations are on for a few more.
* Commercial property offtake looks weak and it may take some time to sell all the units

Expected EPS (not adjusted for the split) for June 2011 : 70-75
PE range : 8-12
Expected price range : 560 - 900 (June 2011)
Building sale : Expected sale price based on executed deal maybe between 270 to 340 crs. EPS from building sale may be around 108 - 136 (assuming the whole building is sold off in FY11).
Payout ratio is about 30% so its possible to see an exceptional dividend of Rs 30-35/per share.

Price of shares may go up significantly based on the property sale to adjust for one time income. That would be the cue to take profits, if any.