Supreme Industries
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2153
Printed Date: 29/Apr/2025 at 4:31am
Topic: Supreme Industries
Posted By: abhishekbasu
Subject: Supreme Industries
Date Posted: 18/May/2009 at 7:51pm
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I was looking at Supreme Industries. Want the views from others on what they feel about the business and future prospects: Supreme Industries - Market Cap 431.89 EPS (TTM) 22.80 P/E 7.46 P/C 4.43 Book Value 96.61 Price/Book 1.76 Div(%) 80.00 Div Yield(%) 4.71 Face Value 10.00 Return On Capital Employed(%) = 11.80 10.80 14.60 19.47 21.15 Return On Net Worth(%) = 10.60 11.35 20.25 22.45 20.63 Earnings Per Share = 15.73, 17.66, 28.93, 18.16, 18.50 (1:2 bonus issue in 2006) Book Value = 147.75, 154.95, 142.88, 80.87, 89.66 Dividend Per Share = 9.00 9.00 10.00 7.50 8.00 % year average growth (from 2004 to 2008) = 23.84% Supreme is in the plastics/mouldings industry. Their chairs are ubiquitous. One issue I see with the company is its very low profit margin (around 3%). ------------- |
Replies:
Posted By: basant
Date Posted: 18/May/2009 at 8:11am
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Looks interesting. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: subu76
Date Posted: 19/May/2009 at 1:24pm
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Playing devil's advocate.
Over the last 4 years
1. The company earned 369 cr CF from operations
2. It needed to pump in 427 cr cash into buying assets (adjusting for asset sales)
Perhaps this explains the low profitability.
Wonder when these assets will start generating cash.
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Posted By: abhishekbasu
Date Posted: 20/May/2009 at 7:22pm
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Posted By: smartcat
Date Posted: 10/Sep/2009 at 3:43pm
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Bought Supreme Industries. Like it because it has a hand in different sectors -
- Retail (plastic crates)
- Automobiles (plastic components like dashboard etc)
- FMCG (packaging for food products & pastes/gels)
- Consumer durables (plastic parts for refrigerator, computer, TV etc)
- Infrastructure & Housing (Plastic pipes)
About 43% of its revenues come from plastic piping division, consumer products (plastic furniture) contributes 11%, packaging products - 25% and industrial products 20%.
For some reason I haven't figured out yet, they are investing around Rs. 170 cr on building a commerical complex. They have already invested around 70 cr so far on it.
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Posted By: nikhil090
Date Posted: 29/Nov/2009 at 2:30pm
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I have just been looking at Supreme industries.. seems like an interesting scrip with some undervaluation.. - Market cap at 750 Cr , Debt of 250 cr - EV of 1000 cr as of now - They are completing a complex of 0.25 million sqft in Andheri which probably can fetch them 150-175 crore at 6-7000/sqft (need to invest another 25-30 cr in the development) - Once they sell it the Balance sheet will be significantly strengthened (Mgmt has already talked about selling the same and using the proceeds for reducing the debt) - EBITDA of 250 cr for 2008-09 - primarily due to sharp reduction in RM prices and Excise duty reduction from 14% to 8%.. - The Q1FY10(sept ending) performance was also good due to above reasons - EBIDTA of 50 cr with PBT of 29 cr , PAT of 19 cr - Management is guiding for sales growth of around 2000-2100 cr with operating margin of 13% - 260-270 cr EBITDA margin - It seem achievable atleast for this year as the government stimulus package is still continuing. - The Net assets (Fixed asset + Current asset - current liability) is around 600+ cr which should roughly be the replacement cost of current plant/machinery etc. - The company has posted much better financial results in the last 3 financial years with ROCE moving up from 13%in 2005-06 to 37% in 08-09. Similarly RONW has increased from 20% to 36%. Assuming that the last 3 year performance is not fluke the company can deliver 20% average ROCE and RONW. - Since plastics have a direct correlation with crude prices and that is the biggest variable for the performance, assuming that they would be able to do EBITDA of 175 cr over next couple of years, we get the EV/EBITDA close to 6. The cash flows have also been fairly strong with good control on inventory/debtors etc. The company has been able to finance lot of expansion (400 cr+ in last 3 years) mostly from internal accruals with almost no increase in absolute debt levels. - The 2nd biggest problem for company is government changes in tax - There profits increased substantially because of more than 6% reduction in excise duty. once it goes back to the same level, they may find some contraction in margins as local/unorganised producers will become more competitive . - The company is a good dividend payer - current yield at 4% and there is high possibility that dividend will be maintained for atleast this level. At the height of property boom they were venturing into property development but right now seem focused on completing the Andheri complex in partnership with R Raheja group. This sale of the property can be the short term trigger. Any comments !!!! |
Posted By: smartcat
Date Posted: 07/Dec/2009 at 2:37pm
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. |
Posted By: deveshkayal
Date Posted: 24/Dec/2009 at 11:44pm
The going rate for residential space in Andheri is around 15-16k/sqft. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: abhishekbasu
Date Posted: 24/Dec/2009 at 10:03am
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The ad in business standard (last week, I think) was for 16,000 per sqft for the office space in their building.
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Posted By: praveen
Date Posted: 27/Dec/2009 at 11:32am
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This is one of the better companies out there. Management track record is excellent. Core business is good. Andheri property sale would provide the top up. Currently trading at reasonable valuations (See below)
Crude valuation :-
Based on management guidance, Core business FY10 (June ending) EPS should be around 30-32. Long term ROE expectation around 25%. FY09 BV 110. Expected FY10 BV is 130/- (FY09 BV + FY10 EPS - DPS of 12/-)
Core business fair value per share - 130 * 2.5 = 325.
Post tax valuation per share of the Andheri real estate = 75 - 100.
Final fair value estimate - ~400-425
------------------- ------------- The quest for knowledge is a never ending Journey |
Posted By: abhishekbasu
Date Posted: 28/Dec/2009 at 4:55pm
Are you estimating a PE of 2.5 for FY10? If so, what are your reasons?
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Posted By: praveen
Date Posted: 28/Dec/2009 at 6:25pm
No I am estimating P/Book at 2.5x which is fair estimate given the longer term 25% ROE estimate ------------- The quest for knowledge is a never ending Journey |
Posted By: abhishekbasu
Date Posted: 28/Dec/2009 at 6:46pm
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Oh, right. Thanks for pointing it out. But, I am not sure the EPS nos are correct. FY09 (June) is 38.33. Sep quarter EPS is 7.82 compared to last year's 3.75. Last year Q2 there was a loss which is unlikely this year. Conservatively, there EPS may end up in the 40-42 range. Putting a PE of 10, your fair value of 400-425 seems reasonable on a standalone basis. The kicker would be the real estate, but that would be a one time gain.
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Posted By: praveen
Date Posted: 28/Dec/2009 at 8:00pm
I looked at little longer term (say last 5 years) in light with management guideline of sales of 2000 cr with 13% operating margin. To me core business EPS of 30-32 looks reasonable and core EPS of 40+ very difficult. Also I like to err on the conservative side while doing valuations.  ------------- The quest for knowledge is a never ending Journey |
Posted By: abhishekbasu
Date Posted: 28/Dec/2009 at 9:09am
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Being conservative is better. That way the surprise is likely to be positive . Looking at the stock price, I don't think there is going to be any split/bonus in the near future. Other than that there is no capex in the offing so don't see any reason for equity dilution happening. The FY09 EPS is 38. Also, it has had reasonable growth for the last 5 years. The use of its products are stable, so would like to understand your reasoning for thinking that EPS will go down from 38 to 30-32 levels.
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Posted By: praveen
Date Posted: 29/Dec/2009 at 12:35pm
If you see over last 5-6 years, FY09 margins look exceptional. Therefore I have assumed Sales of 2000 cr and a net profit margin of 4% which gives the EPS close to 32. (w/o the impact of Andheri RE development) Under my best case scenario the company may end up doing 5% NPM and cross 40 EPS but I am not counting on it. ------------- The quest for knowledge is a never ending Journey |
Posted By: praveen
Date Posted: 30/Dec/2009 at 10:07am
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Their annual report is out. The quality is excellent. There are 8 pages on "Management Discussion & Analysis" providing great details about the business and related issues.
------------- The quest for knowledge is a never ending Journey |
Posted By: smartcat
Date Posted: 31/Dec/2009 at 12:05pm
| Management Discussion & Analysis is the only section that needs to be read before investing in a stock. |
Posted By: praveen
Date Posted: 13/Jan/2010 at 9:34am
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Blowout earnings - Q2 EPS at 14.14; EPS of 3.5 due to Real estate (selling 5% of the Andheri property); Historically they have a better 2nd half compared to 1st. Full year Core EPS should be around 40/- Another 20-25 would be added because of Real estate. FY11 EPS may be closer to ~80 (40-45 core and 35-40 due to real estate) Fair-value is close to 500 but it may shoot upto 600-700 given the robust earnings in the next 7-8 quarters. It may also attract FII attention. Disclosure - I have added to my positions here and have vested interest in this counter. ------------- The quest for knowledge is a never ending Journey |
Posted By: smartcat
Date Posted: 13/Jan/2010 at 11:31am
| http://www.moneycontrol.com/news/results/supreme-industries-q2-pat-at-rs-3591-cr_435632-0.html - This article gives a brief overview about the results, business and capacity expansion. |
Posted By: abhishekbasu
Date Posted: 13/Jan/2010 at 11:32am
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I had read a brokerage report by Anand Rathi dated 28 Dec 2009, where they are expecting a June end EPS of 73 (excluding property income) and 135 (including property income). I don't know what the basis of their assumptions are. My expectation is around 70-80 EPS including the property income for this year. Where I think the value might come in is from PE expansion. Historically, Supreme has ha da PE in the 10-15 band. Conservatively, at 10PE the stock might reach 800 by June, although I am not counting on it. Disclosure: I started this thread and hold Supreme as a sizeable portion of my portfolio. My opinions are subject to be biased. ------------- |
Posted By: praveen
Date Posted: 14/Jan/2010 at 1:48pm
Ideally P/E multiple should only be applied to recurring earnings. But you may be right in Supreme getting P/E re-rating given there is hardly any FII/DII holding here.
------------- The quest for knowledge is a never ending Journey |
Posted By: praveen
Date Posted: 28/Jan/2010 at 10:16am
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Something is cooking here. Post the results volumes have been very high. It's not falling with the falling market. IMHO some strong buyer is using the market fall as buying opportunity ------------- The quest for knowledge is a never ending Journey |
Posted By: smartcat
Date Posted: 29/Jan/2010 at 3:20pm
If you happen to be close to a table made out of wood, touch it !!
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Posted By: praveen
Date Posted: 22/Apr/2010 at 10:29pm
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Another consistent qtr.
Net sales of 512 cr Profits of 37 cr EPS of 14.6 9M EPS of ~37/- FY10 (June ending) EPS should be around ~60 (last qtr amounts for ~40% of the profits) ------------- The quest for knowledge is a never ending Journey |
Posted By: abhishekbasu
Date Posted: 22/Apr/2010 at 11:19am
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Q4 may be better as they have not booked much of the revenues on their property sale in Q3. So, I am expecting the Other Income in Q4 to be much higher. And the core business is also doing reasonably well.
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Posted By: Market Maniac
Date Posted: 22/May/2010 at 8:31pm
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Supreme is a solid company.
I think its the best proxy on plastics in India where the per capita plastic consumption is 6kg while the world average is 25kg.
Plastic consumption is growing at 15% per annum, the same rate as the nominal economic growth.
Now its M. Cap is 1300Cr but still 0 institutional shareholding amid all the hoopla about india growth story. Non promoter holding is 50%
The comp. has a payout ratio of 33% so 20/- divident assured of which 5/- alredy paid.
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Posted By: bihisello
Date Posted: 29/Jun/2010 at 12:33pm
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Supreme Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on July 16, 2010, inter alia, to transact the following business :
1. Consideration of Audited Financial Accounts of the Company for the year ended June 30, 2010 and recommendation of Dividend on Equity Shares; and 2. un-Audited Financial Results for the Quarter ended June 30, 2010. 3. To consider Stock-split / Sub-division of Equity Shares of the present 2,54,05,374 Nos. of Equity Shares of Rs. 10/- (Face Value) each fully paid-up, at such Face Value per Equity Share, as the Board may decide, subject to approval by the Shareholders in General Meeting. |
Posted By: praveen
Date Posted: 21/Jul/2010 at 10:57pm
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Good Results
FY10 results Top Line closer to ~2000crs. NP at 144 crs. EPS at 57 /- Dividend declared at 13 per share. Total dividend for FY10 at ~18 bucks. ------------- The quest for knowledge is a never ending Journey |
Posted By: Market Maniac
Date Posted: 21/Jul/2010 at 11:48pm
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2.3L sq. ft. will be sold to generate approx. 150Cr by Dec. 2010.
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Posted By: praveen
Date Posted: 21/Jul/2010 at 8:17am
Unlikely as commercial real estate market has yet to pick up. It would be more like Dec 2011. ------------- The quest for knowledge is a never ending Journey |
Posted By: smartcat
Date Posted: 22/Jul/2010 at 12:17pm
| Good results yes. I'm surprised Supreme doesn't garner as much investor/brokerage attention as other plastic processing companies like Sintex. |
Posted By: abhishekbasu
Date Posted: 22/Jul/2010 at 12:27pm
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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... ------------- |
Posted By: nav_1996
Date Posted: 22/Jul/2010 at 12:48pm
| How does it compare with Sintex which is trading at similar valuation? |
Posted By: abhishekbasu
Date Posted: 22/Jul/2010 at 3:08pm
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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 :-) ------------- |
Posted By: Market Maniac
Date Posted: 10/Aug/2010 at 10:42pm
| Supreme is a better co. |
Posted By: FutureBull
Date Posted: 10/Aug/2010 at 11:23pm
looks something wrong with the ID.. posting messages left right and centre on every board..
------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: bihisello
Date Posted: 10/Aug/2010 at 11:48pm
I think it is perfectly apt ID. |
Posted By: abhishekbasu
Date Posted: 01/Sep/2010 at 11:19pm
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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. ------------- |
Posted By: Market Maniac
Date Posted: 12/Sep/2010 at 4:38am
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Profits are growing faster than sales due to expansion in margins which in turn is due to increasing share of value added products.
Co. exists low value added products segments ( which are commoditised) and reallocates working capital to other segments. Co. has 19 manufacturing facilities. |
Posted By: abhishekbasu
Date Posted: 19/Oct/2010 at 11:17am
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Supreme Industries’ net profit more than doubled to 40.3 crore for the quarter
ended September 30, 2010, from 19.86 crore reported during the same period of
the previous year. Net sales jumped to 470.5 crore from 342.57 crore a year ago. ------------- |
Posted By: Ravenrage
Date Posted: 20/Oct/2010 at 8:03pm
| Profits have doubled , this should be a nice compounder for the next 2 years . |
Posted By: abhishekbasu
Date Posted: 20/Oct/2010 at 11:10am
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Supreme is coming out with plastic gas cylinders. If it works well then it is slated to replace the metal cylinders that are ubiquitous now. That should provide a huge boost to the topline & bottomline in the years to come.
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Posted By: Ravenrage
Date Posted: 21/Oct/2010 at 10:24pm
| Yes , I saw that . |
Posted By: Market Maniac
Date Posted: 23/Oct/2010 at 2:51am
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EBITDA of plastic business has increased by only 3 Cr.
Time Techoplast is also making plastic gas cylinders |
Posted By: kushal.masand
Date Posted: 05/Dec/2010 at 6:33pm
| hey i just want to knw that have they sold their property, as no where in the thread it is mention that they have. |
Posted By: abhishekbasu
Date Posted: 05/Dec/2010 at 11:21am
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They have sold partially. Expectation is that they will complete the full sale by Dec 2011.
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Posted By: excel_monkey
Date Posted: 12/Dec/2010 at 8:54pm
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this is one midcap stock which has shown strength
speaks a lot about the company |
Posted By: rinkumalpani
Date Posted: 12/Dec/2010 at 12:07pm
| delete |
Posted By: commnman
Date Posted: 04/Feb/2011 at 7:46pm
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Just short of Supreme...
Total Income up 20% to 585.28 Cr from 488.6 Cr. EBIDTA up 12.3% to 81.55 Cr from 72.61 Cr. Net Profit up 11.7% to 41.57 Cr from 37.2 Cr. Note: Net profit includes Rs. 5.58 Cr V/s 4.14 Cr (DQ-09) being its share of profit in Supreme Petrochem. Otherwise, Adjusted Net profit up 8.8% to 36 Cr from 33.06 Cr. EBIDTA margin is 13.93% V/s 14.86% PAT margin is 6.15% V/s 6.77% Cost of goods sold as a %ge to Income is 61.42% V/s 62.95% Employee cost slightly up but stable. Other expenses going up. Interest costs stable. The company follows July - June Financial Year... So, Half-Year ended Dec 2010 to Half-Year ended Dec 2009: Total Income up 25.2% to 1010.2 Cr from 806.91 Cr. EBIDTA up 29% to 159.77 Cr from 123.95 Cr. Net up 43% to 87.31 Cr from 61.07 Cr. Reported Half-Year EPS is 6.87 V/s 4.81 (FY10 Full year 12.28) Cash EPS is Rs. 9.19 V/s 6.77 (Full Year 16.45) Some points to note: Plastic business has done well with sales up 24%. Construction business has disappointed with sales of 4.15 Cr V/s 20.45 Cr last year. That explains modest rise in numbers. The company has declared consolidated numbers for the first time with a share of profit in Supreme Petrochem (29.88% holding). Any fluctuation in Petrochem business may affect the bottomline here too. - ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: abhishekbasu
Date Posted: 04/Feb/2011 at 9:16pm
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The company expects to reach Rs 2600 cr in FY11 and for FY12 to reach Rs 3200 cr. FY10 sales were 2000 cr. This is excluding the real estate sales. It also expects an OPM of 14-15%.
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Posted By: bitu1978
Date Posted: 04/Feb/2011 at 9:53pm
| This Company's price has been as steady as rock in this falling market. |
Posted By: abhishekbasu
Date Posted: 04/Feb/2011 at 8:53am
Absolutely. Augurs well for the turn in sentiment, whenever that comes. By the way, the stock has refused to fall in line with the overall market during the last two years also, so it is a good defensive bet in the portfolio. ------------- |
Posted By: Market Maniac
Date Posted: 08/Feb/2011 at 1:53am
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FY11E :
EPS = 17/- excluding Real Estate = 14/- |
Posted By: commnman
Date Posted: 23/Apr/2011 at 7:39pm
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A crude shock?
Q3 results out... (The Co. follows June ended Accounting Year) Total Income up 29.3% to 662.51 Cr from 512.32 Cr. EBIDTA up 13.2% to 83.68 Cr from 73.9 Cr. Net Profit up 12.3% to 48.27 Cr from 43 Cr. EBIDTA margin is 12.63% V/s 14.43% (MQ-10) and 13.93% (DQ-10) PAT margin is 5.95% V/s 7.24% (MQ-10) and 6.15% (DQ-10) Cost of goods sold as a %ge to Income up 249 bps to 66.82% V/s 64.33% (MQ-10) and 61.42% (DQ-10). Crude oil effect? If thats not enough... Interest costs gone up 60% to 12.93 Cr from 8.08 Cr. Interest to EBIT ratio is 19.2% v/s 13.2% Net profit is greatly helped by: 1. Tax rate that is down to 27.55% from 35%. 2. Share of profit in associates that is up 50% to 8.83 Cr from 5.9 Cr. Who is this associate? Supreme Petrochem Ltd. Of interest is Crude oil which has hurt plastics business but has helped petrochem business. Supreme petro's net has gone up 50% with improvement in both EBIDTA and Net margins. Nine Month ended March 2011 result looks better than quarterly numbers: Total Income up 28% to 1721.23 Cr from 1344.61 Cr. EBIDTA up 23% to 243.45 Cr from 197.85 Cr. Net up 30.3% to 135.59 Cr from 104.07 Cr. Reported 9 month EPS is 10.67 V/s 8.19 (Full year ended Jun-10 is 12.28) - ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: abhishekbasu
Date Posted: 15/Jul/2011 at 12:36pm
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Supreme has shot up in the last few days to around 200-205 now. It's annual results are expected on July 25. Personally, I think it is getting to its fair value. Ironically, I saw a CRISIL buy report on the company that came out today, saying that it is undervalued! Buy/Sell decision on my side would be dependent on the results. ------------- |
Posted By: commnman
Date Posted: 25/Jul/2011 at 5:20pm
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Full Year ended June-2011 results out...
Total Income up 22.5% to 2469.46 Cr from 2016.16 Cr. EBIDTA up 19.7% to 357.39 Cr from 298.68 Cr. PAT up 19.5% to 169.73 Cr from 142.09 Cr. Share of profit in Associated up 88% to 26.12 Cr from 14 Cr. Which has helped in Net Profit that's up 25.6% to 195.84 Cr from 155.99 Cr. EBIDTA margin is 14.5% V/s 14.8% PAT margin is 6.9% V/s 7% Raw material costs as a %ge to Income is 64.4% V/s 65.3% Employee costs stable Other expenses to sales ratio up to 17.2% v/s 15.9% Interest expense to EBIT ratio up 94 bps to 14.4% v/s 13.5% Tax Rate is 34.1% v/s 34.5% Reported EPS is 15.42 v/s 12.28 - ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: praveen
Date Posted: 26/Jul/2011 at 9:59pm
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As usual extremely consistent performance. ------------- The quest for knowledge is a never ending Journey |
Posted By: Good Company
Date Posted: 02/Aug/2011 at 3:20am
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Good Company ------------- Time is a Friend of a Good Company & an Enemy of a Mediocre one. |
Posted By: kushal.masand
Date Posted: 03/Aug/2011 at 12:26pm
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Excellent company. would love to knw the beta of the company, it has to be below 1. ------------- Lets roll up our sleeves, and get to the work... |
Posted By: Buffet Glb
Date Posted: 03/Aug/2011 at 6:57pm
Data Available with Me: Supreme Industries: ROCE: 35 & Beta 0.23 ------------- "The best assets you can have during inflation are your abilities." - Warren Buffett |
Posted By: kushal.masand
Date Posted: 03/Aug/2011 at 10:17pm
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From whr did u got the value of the beta...???? If u can pls share the source.... thanks in advance.... ------------- Lets roll up our sleeves, and get to the work... |
Posted By: Good Company
Date Posted: 23/Aug/2011 at 3:27am
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Why not buy Wimplast instead of Supreme? ------------- Time is a Friend of a Good Company & an Enemy of a Mediocre one. |
Posted By: shontou
Date Posted: 15/Sep/2011 at 4:40pm
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AGM
Supreme Industries The company expects value growth of around 20% for year ending June'12 The company held its AGM on 14/09/2011 and was addressed by Chairman B L Taparia Key highlights For first two months July-August 2011, the company reported volume growth of 1.15% to 32657 tons, which translated in a value growth of 7% on y.o.y basis. The management has indicated that the primary reason for the sluggish volume growth was due to heavy rains and floods in various parts of the country. However they are very hopeful for better performance in coming quarters and have provided a guidance of value growth of 20% by the end of the year. The main drivers of growth are the Tier 2 and 3 cities. The consumption of plastics per person is increasing in India and the trend will continue. With good monsoon, the demand from Tier 2 and 3 cities continues to look promising. Both raw material prices and currency are very volatile in the recent times. The company maintains only a reasonable level of inventory of raw material without making any over commitments on both sides. The high value products sales stood at 29% for year ending June'11, as against about 26% in corresponding previous period. The trend is expected to continue. High value products are those products whose margin is higher than 17%. The company has made an investment to the tune of about Rs 258 crore last year to augment capacities for various products at its existing sites and commissioned production at new site in Tamil Nadu. For period ending June'12, it has plans to invest about Rs 200 crore that includes about Rs 65 crore for manufacture of domestic LPG composite cylinders. This is a unique product, which is light in weight, transparent ie users can see how much gas is left and easy to carry and most importantly explosion proof compared to steel. However the Central Government is yet to announce the policy action in this front and looking at current environment, there can be some delay for the launch. Of the remaining about Rs 135 crore planned for period ending June'12, about Rs 18 crore will be spent on establishing new unit to manufacture protective packaging products at Hosur which will start in April'12. About Rs 82 crore will be spent in creating capacity of about 12000 tons to manufacture cross laminated plastics products in Gujarat and the rest on augmenting existing capacities and product range in all the units of the company. Supreme industries has sold about 13170 sq feet from its new office complex for a sum of about Rs 20.75 crore and expects to sell the remaining planned sale by June'12. Total salable area is about 2.75 lakh sq feet and company expects proceeds of about Rs 425 core on sale of entire premises. The entire manufacturing capacity expansion will be undertaken from internal accruals and from the proceeds of the sale of the premises. There will be no incremental borrowings made during the year. So the overall funds will be used to reduce the borrowings and for further expansions. ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: shontou
Date Posted: 22/Oct/2011 at 10:15pm
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Conference Call
Supreme Industries Debt will come down from present level of Rs 631 crore to Rs 350 crore by 30th June 2012 Supreme Industries held a conference call to discuss the quarter ended September 2011 result and future outlook. The company's top management addressed the meet. Highlights The net sales increased by 6% to Rs 501.18 crore. on back of 9% growth in plastic business to Rs 472.92 crore. The company has processed 46761 MT of polymers, a growth of 3% and had a turnover of Rs 459.03 crore, a growth of 12%. The company expects to show a volume growth of 15% and value growth of 20% respectively for the whole year. The construction business saw de-growth of 19% to Rs 20.75 crore. The company has realized Rs 20.75 crore from sale of 13169 sq.ft.. The company has future negotiated sales of 41625 sq.ft. premises at a consideration of Rs 70.06 crore and received advances of Rs 18.25 crore. Sales is likely to be completed during next quarter and appropriate accounting effects shall be given on completion of the transaction. The net profit has decreased by 29% to Rs 32.55 crore. The sales number also includes other operating income of Rs 7.52 crore, a rise of 163% on account of industrial promotion subsidy from mega project at Gadegaon which is Rs 3.5 crore. For the full year, it expects Rs 30 crore on account of industrial promotion subsidy from mega project. Segmental revenue break up: - Industrial segment revenues stood at Rs 105 crore, consumer segment at Rs 50 crore, packaging segment at Rs 109 crore, piping at Rs 149 crore and others Rs 14 crore. Volume in Industrial Products stood at 8000 tonnes vs 7800 tonnes, consumer segment at 4000 tonnes vs 4900 tonnes, Plastic at 26300 tonnes vs 24300 tonnes and packaging at 8500 tonnes vs 9000 tonne on Y-o-Y basis. The margin of Industrial Products at 11.06% vs 12.8%, consumer segment at 10.92% vs 12.5%, Plastic at 11.9% vs 11.3% and packaging at 16.97% vs 19.55% on Y-o-Y basis The OPM has declined by 234 basis points to 14.18% due to inventory loss and poor demand. Value added products had sales of Rs 131 crore (vs 105 crore Y-o-Y basis) and had margin of 16%. The management expects value added products sales of Rs 850 crore for this year. CVPC pipe had a revenue of Rs 32 crore in Q1 and expects Rs 160 crore for FY12. With more correction in raw material prices and small inventory in Q2, the company hopes a rise in margin in second half of the fiscal year. It plans to introduce composite cylinders in FY12 , plant for which will be commissioned in Q3 FY12. The Government is yet to put invite for expression of interest for these cylinders from interested parties. However, the company will go ahead with its plan and will make cylinder for international market. The debt has gone up from Rs 511 crore at the beginning of the year to Rs 631 crore at the end of September. The management intends to bring down debt level to Rs 350 crore by 30th June 2012. Rise in debt level led to rise in interest cost for September quarter. Interest cost stood at 9.75% and expects to come down to 9% from 1st of January 2012. Credit period as on 30th September 2011 was 36 days and expects to come down for 21-22 days for full year. The company has got exclusive license for putting cross laminated plant in South East Asia and Africa besides India. The capex for FY12 is Rs 200 crore. The management expects Industrial products value growth of 14% to Rs 560 crore and volume growth of 23% to 43500 tonne for FY12. ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: shontou
Date Posted: 04/Feb/2012 at 11:44am
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Conference Call
Supreme Industries Expects to close the year with OPM of 13.5% Supreme Industries held a conference call to discuss the half year ended December 2011 result and future outlook. The company's top management addressed the meet. Highlights The consolidated net sales for Q2 FY12 increased by 24% to Rs 721.3 crore. The OPM has declined by 149 basis points to 12.15% due to rise in raw material cost. The company's profit from construction business is Rs 32.73 crore. The net profit has increased by 43% to Rs 59.29 crore due to profit from construction business. The consolidated net sales for H1 FY12 has increased by 18% to Rs 1201.73 crore. The company has processed 1.11 lakh MT of polymers, a growth of 9% and recorded sales of Rs 1158.95 crore, growth of 19%. The sales number also includes other operating income of Rs 15.98 crore. The net profit has increased by 5% to Rs 91.83 crore. Segmental revenue break up for half year: - Industrial segment revenues stood at Rs 231crore, growth of 10%; consumer segment at Rs 122 crore, growth of 2%; packaging segment at Rs 306 crore, growth of 14% and piping at Rs 515.6 crore, growth of 18%. CPVC pipe had a revenue of Rs 65 crore. For Volume in Industrial Products stood at 16809 tonnes, growth of 3%; consumer segment at 8819 tonnes, de-growth of 20%; Plastic at 67000 tonnes, growth of 18% and packaging at 18460 tonnes, growth of 5%.. OPM has decreased by 112 basis points to 12.08% due to rise in raw material cost. The company's profit from construction business is Rs 46.24 crore. The company has realized Rs 69.16 crore from sale of 41678 sq.ft.. The company has future negotiated sales of 13116 sq.ft. premises at a consideration of Rs 21.65 crore and received advances of Rs 3.25 crore. Sales is likely to be completed during Q3 and appropriate accounting effects shall be given on completion of the transaction. The margin of Industrial Products at 10%, consumer segment at 12%, Plastic at 10% and packaging at 17% on Y-o-Y basis for H1 FY12 The company has booked Rs 12.1 crore from industrial promotion subsidy from mega project at Gadegaon in first half. The company's Rs 200 crore expansion plan is progressing well. The first phase capacity of 6000 TPA of cross laminated film and 400000 composite cylinders is likely to be operational during Sept-Oct. 2012. The protective packaging products unit at Hosur is likely to be operational before the end of current financial year. Industrial Products segment is seeing revival in demand from January Month. Consumer products segment is expected to show good growth in second half of financial year. The management said that it is looking for Rs 1600 crore of turnover for second half and it is targeting a volume growth of 12% and value growth of 20% for the whole year. It also expects to close the year with OPM of 13.5%. The management expects a value growth of 13% for the Industrial segment, 15% for consumer segment, 19% for packaging segment and 11% for piping segment. The company expects to close the year with debt of Rs 350 crore. ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: abhishekbasu
Date Posted: 05/Feb/2012 at 8:52am
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Thanks for the conference call highlights. The company continues to do well and deliver reasonable results.
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