First Read Supreme Industries: PVC in favour; volume missing

研报英文原文证据摘录

First Read Supreme Industries: PVC in favour; volume missing

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Packaging products revenue increased 9% with EBIT margins expanding 110bps YoY. 03/27E 91.84 89.62 -2 89.04

PAT, at Rs2.8bn, was up 39% YoY on a low base. 03/28E 105.69 102.58 -3 104.68

03/29E 117.36 113.34 -3 117.14

Key management commentary and growth outlook

Shaleen Kumar

Q1 FY27 demand was impacted by sharp polymer price volatility, especially in April,

Analyst

leading to channel destocking and weak industry demand. Agri piping was particularly shaleen.kumar@ubs.com

affected as farmers deferred purchases, though management expects a strong recovery +91-22-6155 6065

from mid-September supported by improved reservoir levels and stable PVC pricing. The

Angad Saluja

impact was most severe in April, while demand improved sequentially in May and June,

Associate Analyst

with management highlighting strong recovery trends in July. Supreme continues to angad.saluja@ubs.com

invest in capacity expansion, with new facilities planned in Bihar, Jammu and Malanpur +91-22-6155 6174

and additional land acquisitions in Pondicherry and Erode. The company is also

Raksha Saraf

strengthening its portfolio through new products such as gas piping systems, OPVC Associate Analyst

pipes, composite LPG cylinders, uPVC windows and doors, and offerings added through raksha.saraf@ubs.com

the Wavin acquisition. +91-22-6155 6041

Valuation: Maintain Neutral with lower PT of Rs3,900 (earlier Rs4,000)

We lower our FY27/28E earnings by 2/3% led by lower volume growth, partially offset

by improved realisations. Maintain Neutral with a lower PT of Rs3,900 (earlier Rs4,000)

assigning 38x (unchanged) PE multiple to FY28E earnings.

Highlights (Rsm) 03/24 03/25 03/26 03/27E 03/28E 03/29E 03/30E 03/31E