ICICI Securities: Supreme Industries -Faster-Than-Expected Recovery Post Covid-19 Led Lockdown; Perfect Recipe For Re-Rating

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Supreme Industries Ltd.’s re-rating is driven by -1. faster-than-expected recovery post Covid-19 led lockdown - mere 3.4%/3.7% volume/value decline in July and August 2020 (Source: Chairman’s speech at its recently concluded annual general meeting);2. higher (double-digit) growth expectations post FY21 in its core segments – plastic piping and Silapulin;3. likely improvement in asset turns over the next two to three years with huge capex over FY20-FY21 going into the production next year;4. reducing dependence on commodity-led industrial and consumer product segments;5. higher Ebitda margin trajectory driven by increasing share of value added products (VAP) revenues, further decentralisation of plants, superior product mix and operating leverage; and6. fast improving return on capital employed led by strong traction in profitability and higher fixed asset turns..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Supreme Industries -Faster-Than-Expected Recovery Post Covid-19 Led Lockdown; Perfect Recipe For Re-Rating

ICICI Securities: Supreme Industries -Faster-Than-Expected Recovery Post Covid-19 Led Lockdown; Perfect Recipe For Re-Rating

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