Supreme Industries Q2 Results Review - Subdued Sales Volume, Weak NSR Dragged Earnings: IDBI Capital

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Supreme Industries Ltd.’s Q2 FY25 result was below our estimates on key parameters. Volatility in raw material prices led to de-stocking in Q2 and dented sales volume. Further, the company incurred Rs 350-Rs 400 million inventory loss which weighed on operating margin. The management anticipates resin prices to stabilize or marginally go up and may aid in NSR improvement and higher sales volume. Given weak H1 FY25 performance, the company has lowered plastic pipes volume guidance from earlier 25% to 16%-18% in FY25. Accordingly we have cut our earnings estimates for FY25E/FY26E. Supreme Industries reported net sales of Rs 22.7 billion, marginally down by 1.5% YoY, while Ebitda came in at Rs 3.1 billion, declined by 10.4% over Q2 FY24. It reported net profit of Rs 2 billion, lower by 15% YoY. We maintain Hold rating on the stock with a revised target price of Rs 4,821 (earlier Rs 5,455), assigning 45 times PER on FY26E..Click on the attachment to read the full report:.Kajaria Ceramics Q2 Results Review - Low Volume, Margins To Gradually Revive By Q4: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Supreme Industries Q2 Results Review - Subdued Sales Volume, Weak NSR Dragged Earnings: IDBI Capital

The brokerage maintains 'Hold' rating on the stock and lowers the target price, know why

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Supreme Industries Q2 Results Review - Subdued Sales Volume, Weak NSR Dragged Earnings: IDBI Capital

The brokerage maintains 'Hold' rating on the stock and lowers the target price, know why

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