Supreme Industries - Confident Of 20% Plus Volume Growth In Plastic Pipes: Yes Securities
Company expects a turnover of Rs 110 billion with an operating margin of 13.5-14%.
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Yes Securities Report
We reckon demand for plastic pipes to remain buoyant on account of strong demand from Jal Jeevan Mission coupled with healthy demand from irrigation. Moreover, with resilient growth in new project launches, pluming demand for plastic should also witness strong traction.
Supreme Industries Ltd. being the largest plastic pipes manufacturer, should benefit from the same.
Moreover, with new upcoming capacities, product launches and shift in demand to branded players, we recon Supreme Industries to outperform industry growth by reporting volume growth of 16% compound annual growth rate over FY23-25E.
Overall, we expect revenue/Ebitda/profit after tax to grow by 12%/22%/12% over FY23-25E.
Given the buoyancy in demand, which is evident via our channel checks and management’s commentary, we have revised our FY24E/FY25E estimates upwards.
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