Supreme Industries Shares Soar with 92% Returns in One Year

The Indian headline indices fluctuated between modest gains and losses but ended the session with a significant decline. The worst-performing sectors were BSE Fast Moving Consumer Goods and BSE Bankex, while capital goods, power and utility sector stocks attempted to lift the market. 

Broader indices significantly outperformed the main indices. Shares of Supreme Industries, one of the top BSE Midcap gainers today, drew attention from investors due to their robust uptrend and back-to-back new 52-week highs. 

On an intraday basis on Monday, shares of Supreme Industries Ltd climbed more than 6%, reaching a 52-week high of Rs 3,718.25 per share on the BSE. Shares of the company have skyrocketed around 92% over the last year while providing stellar returns of more than 17% in just one month!  

Considering the company’s quarterly performance, on a consolidated basis it reported a modest growth in revenue of 1.61% from Rs 2,557.09 crore registered in Q4FY22, recording total revenue of Rs 2,598.30 crore in Q4FY23. The consolidated net profit for the fourth quarter of FY23 grew 10.98% from Rs 323.86 crore to Rs 359.43 crore. 

Supreme Industries, founded in 1942, is one of India’s leading manufacturers of plastic products today. The company manufactures products in a number of different product categories, including plastic piping systems, cross-laminated films & products, protective packaging products, industrial moulded components, moulded furniture, and storage and material handling products. It processes more than 5,00,000 metric tons of plastic polymer annually and also has a wide distribution network of over 4,000 distributors and exports to over 55 countries. 

The company plans to commit a capex of roughly Rs 750 crore this year, including Rs 153 crore in carry-forward commitments at the start of the year. Capex is intended to expand capacities and develop new product lines across all segments. 

Keep a close eye on this stock in the upcoming sessions.  

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.