Shares of Supreme Industries jumped 7% after impressive financial results; details inside

Today, shares of Supreme Industries Ltd jumped 6.96% amid strong financial results for the second quarter of FY24. On a consolidated basis, in Q2FY24 the company recorded a robust financial performance with a 196.50% year-on-year increase in net profit, reaching Rs 243.19 crore compared to Rs 82.02 crore in the corresponding quarter of the previous year. During the second quarter of FY24, the company’s total net revenue showed an increase of 10.96% from Rs 2,092.12 crore to Rs 2,321.38 crore compared to the same quarter in the preceding year.

Sequentially, the net profit for the quarter ending on September 30, 2023, showed an increase of 12.83% from Rs 215.54 crore. However, in Q2FY24, the company’s total net revenue registered a slight decline of 2.58% compared to the previous quarter, settling at Rs 2382.78 crore.

Board of the company has also declared an interim dividend for the financial year 2023-24 of Rs 8 per equity share which has a face value of Rs 2 which translates to a 400% return. The Dividend will be paid to those shareholders whose names stand on the Register of Members as of the Record Date i.e. November 7, 2023.

Two main highlights for the quarter in the business were as follows: The company had a total cash surplus of Rs 583 crore as of September 30, 2023, compared to a cash surplus of Rs 738 crore as of March 31, 2023. Additionally, the company’s view on polymer prices, which remained relatively stable during the quarter, changed when it witnessed a sharp downward trend in the first fortnight of October, impacting the company’s business sentiments. However, the company now reports that prices have begun stabilizing, and business activities are picking up.

In the last trading session, the stock closed at Rs 4,217.90. Today, it opened at Rs 4,228.40 and it was closed at Rs 4,511.60, up by 6.96%. The shares of the company has a 52-week high at Rs 4883.75 and a 52-week low at Rs 1949.45. The company currently commands a market capitalization of approximately Rs 57,300 crore, with shares having generated a one-year multibagger return of 109.75%. Over the past 10 years the company’s shares have increased in value by 1048.16% starting from Rs 392.95 on November 1, 2013, and closing at today’s value.

Supreme Industries Ltd is one of the leading plastic products manufacturing companies in India having 25 manufacturing facilities spread across the country, offering a wide and comprehensive range of plastic products in India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.