IIFL Securities's Stock Pick Today: Buy Supreme Industries with Target Rs 5476

IIFL Securities has initiated coverage on Supreme Industries with a 'buy' rating and a target price of Rs 5476, implying a potential upside of around 2.5%. The brokerage firm believes that the company is well-positioned to benefit from the recovery in the consumer durables sector and expects its revenue to grow at a CAGR of 14% over FY21-23E. The company's strong brand recall, wide distribution network, and focus on innovation are expected to drive its growth.

About Supreme Industries:

Supreme Industries is a leading Indian manufacturer of plastic products, primarily focused on consumer goods and industrial packaging. Listed on the National Stock Exchange (NSE) of India, the company offers a wide range of products including household appliances, furniture, storage solutions, and industrial components. Supreme Industries has a strong pan-India distribution network with over 250 distributors and 60,000 retail outlets. The company has a significant presence in the Middle East, Africa, and South East Asia, with exports to over 80 countries. Supreme Industries has a well-established brand reputation and is known for its innovative designs and high-quality products.

52 Week Price Trend:

Supreme Industries, with a current market price of Rs 5340.5, has witnessed significant growth compared to its 52-week high of Rs 4888 and low of Rs 2430.5. The company's strong financial performance, driven by increased demand for its plastic products, has contributed to its stock price appreciation. Supreme Industries' focus on innovation and expansion, including the acquisition of European companies, has further enhanced its market position and growth prospects. Analysts remain optimistic about the company's long-term growth potential, supported by favorable industry tailwinds and the company's strategic initiatives.

Stratzy's MOST Analysis:

SUPREMEIND has received an AAA rating from Stratzy's MOST Framework, indicating an extremely low fundamental risk. This rating is based on the company's strong management team, positive outlook, financial safety, and upward trend. The MOST framework evaluates these four key pillars to provide a comprehensive assessment of a company's financial health and growth potential. SUPREMEIND's AAA rating suggests that it is a highly stable and reliable investment, with a low likelihood of experiencing significant financial losses in the future.

Company's Fundamentals:

Supreme Industries (NSE: SUPREMEIND), a manufacturer of plastic products, currently trades at a Stock PE ratio of 48.34, indicating that investors are willing to pay 48.34 times the company's annual earnings per share for its stock. The Price-to-Book (PB) Ratio of 11.28 suggests that the company's market value is 11.28 times its book value, or net assets. Moreover, the low Dividend Yield of 0.64% implies that investors prioritize capital appreciation over regular dividend income from the company.

Fundamental and Technical information provided in this blog were last updated on 08 May, 2024

Disclaimer: The information and recommendations presented in this section, including any attached reports, are sourced from third-party providers through diverse channels. The views and opinions expressed within these materials belong solely to their respective creators. These views and opinions do not necessarily reflect the position of Stratzy Fintech Pvt Ltd. Stratzy explicitly disclaims any guarantees, express or implied, regarding the accuracy and reliability of the provided content. We strongly advise consulting with a licensed financial advisor before making any investment decisions based on this information. Remember, seeking independent financial advice is crucial.