Supreme Industries falls 3% as brokerages slash target price

While maintaining buy call on Supreme, CLSA said it cut price to Rs 1,320 from Rs 1,387 per share earlier after it slashed FY20 & 21 earnings estimates by 8 percent.


Supreme Industries shares fell 3 percent intraday on May 8 as brokerages cut their earnings estimates of the company. The company reported its fourth quarter earnings recently.

The stock was quoting at Rs 1,014, down 2.30 percent on the BSE, at 11:17 hours IST.

While maintaining buy call on Supreme, CLSA said it cut price to Rs 1,320 from Rs 1,387 per share earlier after it slashed FY20 & 21 earnings estimates by 8 percent.

During March quarter, inventory losses impacted margin and volume growth was moderate at 10 percent YoY, the brokerage said, adding management highlighted peak pricing pressure in cross-laminated films.

CLSA sees an improving demand environment for the piping segment.

The plastics product maker reported a sharp 39 percent year-on-year decline in its March quarter net profit at Rs 101.7 crore, and revenue increased moderately by 4 percent to Rs 1,530.9 crore.

Supreme Industries' plastic piping segment, which contributed around 57 percent to total sales in FY19, posted volume growth of 14.7 percent and value growth of 14 percent for the quarter.

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