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Buy Supreme Industries; target of Rs 2300: Sharekhan

Sharekhan is bullish on Supreme Industries has recommended buy rating on the stock with a target price of Rs 2300 in its research report dated July 25, 2022.

July 27, 2022 / 05:24 PM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
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Sharekhan's research report on Supreme Industries

Supreme Industries reported better-than-expected consolidated revenues for Q1FY2023 while it disappointed on OPM front owing to inventory losses and changes in product mix. The management expects the business improvement from the fag end of Q2FY2023 with PVC prices bottoming out. It expects overall 15% volume growth and 15% OPM for FY2023. Capex of Rs. 700 crore including carry-forward commitments majorly to augment plastic piping capacities highlights underlying strong demand growth expectations.

Outlook

We retain a Buy on Supreme Industries Limited (SIL) with a revised PT of Rs. 2,300 lowering our valuation multiple to factor in near term headwinds.

For all recommendations report, click here

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Supreme Industries - 260722 - khan

Broker Research
first published: Jul 27, 2022 05:24 pm

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