Stratzy Stock Idea: Buy Supreme Industries with Target Rs 4867

On April 5th, Stratzy released a buy call for Supreme Industries, setting a target price of Rs 4867. This represented a significant premium over the current market price of Rs 4301.05. The call was based on the company's strong financial performance, increasing demand for its products, and attractive valuations. Investors were advised to enter the trade with a stop-loss price of Rs 4150.

About Supreme Industries:

Supreme Industries, listed on the National Stock Exchange (NSE), is a leading manufacturer of plastic products in India. Established in 1942, the company has a diverse product portfolio including molded furniture, material handling products, packaging solutions, and white goods components. Supreme Industries operates 24 manufacturing facilities across India and has a strong distribution network with over 6,000 dealers and distributors. The company is known for its innovative designs, quality products, and strong brand recognition, making it one of the most trusted brands in the plastic industry.

52 Week Price Trend:

Supreme Industries (NSE:SUPREMEIND) is currently trading at Rs 4301.05, which is below its 52-week high of Rs 4888 and above its 52-week low of Rs 2430.5. This indicates that the stock has witnessed significant volatility over the past year. Investors should carefully consider the company's fundamentals and future prospects before making any investment decisions. The company's recent financial performance and industry outlook should be thoroughly analyzed to assess its potential for growth and profitability.

Stratzy's MOST Analysis:

Supreme Industries has been rated AAA by Stratzy's MOST framework based on its strong management, positive outlook, high safety, and bullish trend. The company exhibits exceptional leadership, sound financial performance, and a well-defined growth strategy. Its positive industry outlook and strong market position contribute to its stability. Supreme Industries maintains high safety standards, ensuring operational efficiency and minimizing risk. The bullish trend in its stock price and key financial indicators points to its growth potential and investor confidence. Overall, the AAA rating indicates that Supreme Industries has low fundamental risks and is a promising investment opportunity.

Company's Fundamentals:

Supreme Industries (NSE: SUPREMEIND) trades at a Stock PE of 48.34, indicating that investors are paying INR 48.34 per INR of earnings. Its PB Ratio of 11.28 suggests that investors are paying INR 11.28 for every INR of book value, implying a premium valuation. However, the company's Dividend Yield of only 0.64% reflects a low payout to shareholders, which may limit the attractiveness of the stock for income-seeking investors. These metrics together paint a picture of a company with a relatively high valuation compared to its earnings and book value, but with a limited dividend yield.

Fundamental and Technical information provided in this blog were last updated on 05 Apr, 2024

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