Dolat Capital upgrades Supreme Industries to accumulate, target price Rs 1,441

Dolat Capital has upgraded the recommendation on Supreme Industries to accumulate with a target price of Rs 1,441. The stock ended at Rs 1227 on Friday while BSE Sensex closed 246.32 points up at 39,298.38.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 1436.83 crore, down -6.15% from last quarter sales of Rs 1530.91 crore and up 6.77 % from last year same quarter sales of Rs 1345.71 crore. The company has reported net profit after tax of Rs 74.64 crore in the latest quarter.


Investment Rationale

Considering the buoyancy in the piping segment, the brokerage expect Supreme Industries volume and revenue growth trajectory to improve from heron. Key factor to watch out will be the gross margin pattern. PVC prices will be the key monitorable, said the brokerage.