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Supreme Industries Ltd. Stock Analysis

Mid Cap
Evaluated by 3368 users | BSE: 509930 | NSE: SUPREMEIND |
Plastic Products
Supreme Industries, incorporated in 1942, manufactures a wide range of polymers products. The company manufactures products like Cross-Laminated Films, HMHD Films, Multilayer Films, SWR Piping Systems, PP Mats, moulded furniture, and many more.   The company owns largest plastics...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Supreme Industries Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Jun'11Jun'12Jun'13Jun'14Jun'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 22.94%27.98%27.45%24.59%24.13%15.41%23.11%22.35%20.41%22.73%
Value Creation Index NANANANANA0.190.780.720.570.75
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,4692,9283,4033,9624,2553,9474,4624,9705,6125,511
Y-o-Y Gr. Rt.-18.6%16.2%16.4%7.4%-7.2%13.1%11.4%12.9%-1.8%
Adjusted EPS (Rs.) 13.5718.821.4421.924.7423.1429.6732.0631.3740.41
Y-o-Y Gr. Rt.-38.5%14%2.2%13%-6.5%28.2%8.1%-2.2%28.8%
Book Value per Share (Rs.) 38.4350.3963.0775.8688.45128.26122.27136.41156.84167.85
Adjusted Net Profit 172239272278314294377407399513
Net Op. Cash Flow (Rs. Cr.) 170352405326601395464505557537
Debt to Cash Flow from Ops 3.0311.161.450.651.390.60.490.290.77
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Supreme Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.3%5.3%7.3%-1.8%
Adjusted EPS 12.9%10.3%10.9%28.8%
Book Value per Share 17.813.711.17
Share Price 24.9% 18.9% 7.3% 19.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'11Jun'12Jun'13Jun'14Jun'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 39.7142.2337.7331.4830.118.827.1524.7921.3924.88
Operating Profit Margin (%) 14.516.1315.7314.8215.6615.6817.0715.8313.9715.6
Net Profit Margin (%) 6.988.1687.027.397.458.458.27.19.31
Debt to Equity 1.050.550.590.490.350.340.180.140.080.19
Working Capital Days 877472747210682908694
Cash Conversion Cycle 44282126273730353336
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 48.85%
Institutions 33.28%
Non-Institutions 17.87%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Supreme Industries and arrived at the following conclusion:

Past 10 year's financial track record indicates that Supreme Industries is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Supreme Industries's performance infers:

Supreme Industries earnings have grown by 10.3%, whereas share price has appreciated 18.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Supreme Industries share prices over the last 10 years. Here is what we found out:

Supreme Industries share price has appreciated 26.9% annually over the past ten years.

Supreme Industries, incorporated in 1942, manufactures a wide range of polymers products. The company manufactures products like Cross-Laminated Films, HMHD Films, Multilayer Films, SWR Piping Systems, PP Mats, moulded furniture, and many more.  

The company owns largest plastics processors in India. SIL operates 18 plants that is located at Derabassi, Durgapur, Gadegaon, Guwahati, Halol, Hosur,

Supreme Industries, incorporated in 1942, manufactures a wide range of polymers products. The company manufactures products like Cross-Laminated Films, HMHD Films, Multilayer Films, SWR Piping Systems, PP Mats, moulded furniture, and many more.  

The company owns largest plastics processors in India. SIL operates 18 plants that is located at Derabassi, Durgapur, Gadegaon, Guwahati, Halol, Hosur, Jalgaon, Kanhe, Kanpur, Khopoli, Khushkheda, Malanpur, Nandesari, Noida, Pondicherry and Silvassa.

It also owns a research and development facility that undertakes CAD, CAM and CAE related projects. This R&D unit located in Mumbai focuses on new product development.

The company operates a subsidiary namely The Supreme Industries Overseas (FZE) operating in UAE. This subsidiary has supported company to create product presence in 21 countries.

The Supreme Group is a Rs 2000 crore multi-unit conglomerate that owns largest plastic product portfolio in India.

Products

Moulded Furniture- The company has manufacturing capacity of 1 million pieces a month. It has portfolio of 70 models under this segment.

Material Handling Products- Under this it manufactures products using computer designed moulds at the company's eight injection moulding facilities across India -- with technology from Schoeller Wavin Systems International Services GmbH & Co. KG of Germany. The products have application in industries like electronics, engineering, automotive, textiles, fisheries, fruits and vegetable handling, soft drinks, dairies, and many more.

XF Films- The company’s division produces reliable, cost-effective, quality product and market the same under the brand name “SILPAULIN”. This product has applications in area of agricultural, industrial applications, civil engineering, export marketing and for covering purpose.

Hi-Performance Packaging Films- This product is extensively used by food industry for packaging products. SIL has an annual capacity of 7500 MT.

It also manufactures industrial moulded products, protective packaging and plastic piping systems.

Supreme Petrochem

Supreme Petrochem (SPL) is a joint venture between Supreme Industries and the Rajan Raheja Group. SPL is pioneer in Polystyrene business and commands 50% of market share. This company is the largest exporter of PS from India, exporting to over 80 countries around the globe. This company manufactures products namely Ignition Retardant HIPS, Mineral Filled HIPS, Micro floppy diskette grade, UV stabilised PS, Toughened PS and custom coloured PS, filled PP for automotive/appliance industry application, high quality white and gray colour masterbatches for injection moulding

Outlook

Supreme Industries plan to undertake various strategic initiatives to widen its product portfolio as well as global presence.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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