Highest Ever Dividend of Rs 22: Total Dividend Outflow Reached Rs. 381 Cr In FY24; Buy The Bluechip Stock?

The top producer of plastic products in India, Supreme Industries Limited (Supreme), has released its audited standalone and consolidated financial results for the quarter and year that ended on March 31, 2024. On Monday, the shares of Supreme Industries marked a fresh 52-week-high at Rs 5,000 level and ended the day higher by 12.53% at Rs 4953.80 apiece level on BSE. The surge in the stock price was observed following the Board's announcement of the highest-ever dividend of Rs 22 per share, in addition to the stellar Q4 performance.

Supreme Industries Dividend

"The Board of Directors has recommended payment of final dividend @ 1100 % i.e. Rs. 22 /- per equity share on 12,70,26,870 Equity Shares of Rs.2/- each for the year ended 31st March, 2024 which together with Interim Dividend paid @ 400% i.e. Rs. 8/- per equity share aggregates to @ 1500 % i.e. Rs. 30 /- per equity share for the current year (Previous year @ 1300% i.e. Rs. 26/- per equity share). Total outflow for dividend shall absorb a sum of Rs. 381 Crores as against Rs. 330 Crores in previous year," said Supreme Industries in a regulatory filing.

"The 82nd Annual General Meeting of the Members of the Company is scheduled to be held on Friday, 28th June, 2024 at 4.00 p.m. Register of Members and the Share Transfer Books of the Company will remain closed from Saturday the 22nd June, 2024 to Friday the 28th June, 2024 (both days inclusive), for the purpose of Annual General Meeting and Dividend.

The Dividend as recommended by the Board, if approved at the 82nd Annual General Meeting, will be paid on or after 8th July, 2024. The Dividend when sanctioned will be payable to those Equity Shareholders, whose names stands on the Register of Members on the close of 28th June, 2024. However, in respect of Shares held in the electronic form, the Dividend will be payable, to the beneficial owners of the said Shares as at close of Friday 21st June, 2024 (Record Date), as per details furnished by Depositories," the company further stated in a stock exchange filing.

Supreme Industries Q4 Results

In Q4FY24, the PAT climbed by 1.26% to Rs 314.48 crore, from Rs 310.56 crore in Q4FY23. The company's revenue for the quarter that ended in March 2024 climbed by 16% YoY to Rs 3025.99 Cr, from Rs 2,609.61 in Q4FY23. The firm reported a 33% rise in sales volume from Rs 1,47,414 Cr in the same quarter of the previous fiscal year to Rs 1,95,369 Cr in Q4FY24. EBITDA increased by 3.49% to Rs. 509.11 crore in March 2024 from Rs. 491.93 crore in the same quarter of the previous fiscal.

As of March 31, 2024, the company's total cash surplus was Rs. 1178 crores, compared to Rs. 738 crores as on 31st March, 2023. Value-added product turnover climbed to Rs. 3737 crores from Rs. 3329 crores the year before, representing a 13% gain. The company plans to invest around Rs. 1500 crores in capital expenditures, including Rs. 496 crores in carryforward commitments announced at the beginning of the year. This year, the company intends to increase its volume by 20%.

Supreme Industries Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "SUPREMEIND is currently trading at Rs 4823, showcasing a notable 13% surge on April 29, 2024, reaching an all-time high. It has recently formed a rounding bottom pattern breakout on the daily chart with good volume, indicating a potential reversal and a strong bullish trend. A breakout above Rs 4900 could propel the stock towards the Rs 5400 level, with an immediate resistance at Rs 5200. On the flip side, Rs 4300 serves as a crucial support level."

"Furthermore, after a prolonged correction, the stock has reversed from the support level. The Relative Strength Index (RSI) is currently at 73, on an upward trajectory, suggesting growing buying momentum. Collectively, these technical indicators imply that SUPREMEIND has the potential to reach the Rs 5400 target in the near term. To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 5300 to protect the investment in case of an unexpected market reversal. A prudent strategy would involve considering buying opportunities on dips at levels around Rs 4400," the analyst added.

"In summary, based on technical analysis and prevailing market conditions, SUPREMEIND appears to present a promising buying opportunity for those targeting a Rs 5400 price objective. It is crucial to implement prudent risk management strategies to navigate potential market fluctuations," Mandar Bhojane stated.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.