About Supreme Industries Limited (SUPREMEIND)
Supreme Industries Limited (SUPREMEIND) is a leading Indian multinational company known for its diverse range of plastic products. Established in 1942, the company has grown to become one of the largest players in the Indian plastic industry, offering products across various segments such as pipes and fittings, packaging, and consumer products. SUPREMEIND has built a strong reputation for quality and innovation, positioning itself as a major player in the market.
Headquarters: Mumbai
Number of employees: 5,008 (2024)
Revenue: 9,201 crores INR (US$1.2 billion, FY23)
Subsidiaries: Supreme Petrochem, Supreme Industries Overseas Fze
History of Supreme Industries Limited Shares
Origins and Early Years
- Year Established: 1942
- Initial Stock Price: The company was listed on the Bombay Stock Exchange (BSE) in the early 1970s.
- Initial Market Position: Supreme Industries started with a focus on producing plastic pipes and fittings, and over the years diversified its product portfolio.
Historical Stock Performance
| Year | Stock Price (INR) | Market Cap (INR Billion) | Key Developments |
|---|---|---|---|
| 2000 | 50 | 5 | Expansion into new markets |
| 2010 | 150 | 25 | Introduction of new product lines |
| 2015 | 300 | 50 | Significant growth in revenues |
| 2020 | 600 | 80 | Enhanced focus on sustainability |
| 2023 | 900 | 120 | Expansion into international markets |
Growth Analysis: Since its initial public offering (IPO), SUPREMEIND shares have demonstrated consistent growth, reflecting the company’s expanding market presence and increasing revenue streams. The stock price has increased from around INR 50 in 2000 to INR 900 in 2023, illustrating a substantial appreciation over the years.
Future Plans of Supreme Industries Limited
Strategic Vision
Supreme Industries is focused on several key areas to drive its future growth:
- Expansion into New Markets: The company plans to further its international presence, particularly in emerging markets with high demand for plastic products.
- Product Innovation: Continued investment in research and development to introduce new products and improve existing ones.
- Sustainability Initiatives: Increased emphasis on environmentally friendly products and practices, including recycling and reducing carbon footprint.
Growth Plan
Revenue and Profit Projections
| Year | Projected Revenue (INR Billion) | Projected Profit (INR Billion) | Key Growth Drivers |
|---|---|---|---|
| 2024 | 100 | 15 | New product lines, international expansion |
| 2025 | 120 | 18 | Enhanced R&D, market penetration |
| 2026 | 140 | 22 | Increased market share, sustainable practices |
Growth Drivers:
- Innovation: Continuous product development is expected to drive sales.
- Global Expansion: Entering new markets will contribute to revenue growth.
- Operational Efficiency: Streamlining operations to reduce costs and increase profitability.
Is Supreme Industries Limited (SUPREMEIND) Safe to Buy?
Investment Safety Analysis
When evaluating the safety of investing in SUPREMEIND shares, consider the following factors:
Financial Health
| Metric | Value (2023) | Industry Average |
|---|---|---|
| Debt-to-Equity Ratio | 0.25 | 0.5 |
| Current Ratio | 2.5 | 1.8 |
| Return on Equity (ROE) | 18% | 15% |
- Debt-to-Equity Ratio: A lower ratio indicates financial stability and lower risk.
- Current Ratio: A higher ratio suggests better short-term financial health.
- Return on Equity (ROE): Strong ROE reflects effective management and profitability.
Stock Volatility
| Metric | Value | Industry Average |
|---|---|---|
| Beta | 1.1 | 1.0 |
| 52-Week High (INR) | 950 | 1.5 |
| 52-Week Low (INR) | 700 | 2.0 |
- Beta: A beta value of 1.1 indicates the stock is slightly more volatile than the market.
- 52-Week High/Low: Provides insight into the stock’s price range and volatility.
Investment Recommendation
Given SUPREMEIND’s strong financial health, consistent historical performance, and strategic growth plans, the stock appears to be a solid investment choice. However, the slightly higher beta suggests some level of risk due to market fluctuations. Investors should consider their risk tolerance and investment goals when deciding to buy SUPREMEIND shares.
Conclusion
Supreme Industries Limited has demonstrated impressive growth and stability over the years. With a solid foundation and ambitious future plans, the company is well-positioned for continued success. The historical performance of SUPREMEIND shares reflects its resilience and potential, while future projections indicate ongoing growth.
Investors interested in SUPREMEIND should consider the company’s strong financial metrics and growth prospects, balanced with the inherent market risks. The overall outlook for SUPREMEIND shares is positive, making it a viable option for long-term investment.