IIFL Securities Stock Market Watch Today: Buy Supreme Industries

On May 15, IIFL Securities issued a buy recommendation for Supreme Industries, with a target price of Rs 5550, in line with the current market price of Rs 5360.1. The brokerage firm is optimistic about Supreme Industries' growth prospects, citing factors such as strong demand for its products, capacity expansion, and focus on innovation. Investors are advised to consider this buy call and evaluate if it aligns with their investment strategy.

About Supreme Industries:

Supreme Industries Limited is a leading manufacturer of plastic products in India. Established in 1942, the company is primarily engaged in manufacturing and marketing a diverse range of plastic products including molded furniture, storage solutions, kitchenware, material handling crates, and engineered plastics. Supreme Industries has a strong presence in the domestic market and also exports its products to over 40 countries worldwide. The company's manufacturing facilities are located in multiple locations across India and it employs over 4,000 people. Supreme Industries is known for its innovative product designs and commitment to quality, and it has received numerous industry awards and recognitions.

52 Week Price Trend:

Supreme Industries, a renowned player in the plastic products industry, is currently trading at Rs 5360.1. The stock has witnessed a significant surge in its value, reaching a 52-week high of Rs 4888. However, it has also experienced lows, with its 52-week low being Rs 2430.5. This wide range in price fluctuations indicates the volatility associated with the stock. Investors should carefully consider these historical price movements and their own risk tolerance before making any investment decisions.

Stratzy's MOST Analysis:

Supreme Industries has been rated AAA by Stratzy's MOST framework, which analyzes Management, Outlook, Safety, and Trend to assess fundamental risks. This AAA rating signifies that Supreme Industries has strong management, a positive outlook, high safety, and a favorable trend. This indicates that the company's fundamentals are robust and that it poses low fundamental risks to investors.

Company's Fundamentals:

Supreme Industries (NSE: SUPREMEIND) is a publicly traded company that manufactures plastic products. With a stock PE (price-to-earnings ratio) of 48.34, it suggests that investors are willing to pay a premium for its earnings. The PB ratio (price-to-book ratio) of 11.28 indicates that the company's market value is 11.28 times its book value, implying a potential overvaluation. However, the dividend yield of 0.64% provides investors with a modest stream of income. These metrics collectively indicate a combination of high valuation, potential overvaluation, and a small income return for shareholders.

Fundamental and Technical information provided in this blog were last updated on 15 May, 2024

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