Supreme Industries Posts 197% PAT Growth In Q2, Declares Rs 8/Share Dividend: Buy?

The top producer of plastic products in India, Supreme Industries Limited (Supreme), has declared a 400% dividend for FY24 and released its financial results for the quarter and half year that ended on September 30, 2023.

Supreme Industries Dividend

"The Board of Directors has declared interim dividend @ 400 % i.e. Rs. 8 per share of Rs. 2 each (FV), for the financial year 2023-24. The Dividend will be paid to those shareholders whose names stand on the Register of Members as on the Record date i.e. 7th November, 2023," said Supreme Industries in a stock exchange filing.

Supreme Industries Q2 Results

On a standalone basis, the company recorded a net income of Rs 2361.88 Cr during Q2FY24 up by 10.75% YoY from Rs 2132.61 Cr in Q2FY23. Its operating profit surged 142.12% YoY from Rs 147.25 Cr in the year-ago quarter to Rs 356.52 Cr in the quarter under review. The company reported a net profit of Rs 259.97 Cr in Q2FY24 up by 149.76% YoY from a standalone net profit of Rs 104.09 stood during the same quarter of FY23.

On a consolidated basis, Supreme Industries posted a net income of Rs 2321.38 Cr during the quarter ended on 30th September, 2023 compared to Rs 2092.12 Cr in the year-ago quarter, representing a growth of 10.96% YoY. Its consolidated operating profit reached Rs 380.26 Cr in Q2FY24 up by 129.50% YoY from Rs 165.69 Cr in Q2FY23. Supreme Industries recorded a net profit of Rs 243.19 Cr on a consolidated basis during the quarter under review up by 196.50% YoY from Rs 82.02 Cr reported in the year-ago quarter.

Supreme Industries Share Price Target

Deven Mehata-Equity Research Analyst at Choice Broking said, "SUPREMEIND technically suggests a bullish outlook for the stock. It's currently trading around 4340, and several factors point towards potential upward momentum. The fact that the stock is trading above important Exponential Moving Averages (EMAs) is a positive sign, as it indicates a strong and sustained uptrend. A notable aspect of this analysis is the strong support level at 4135, which aligns with the 50-Day EMA. Support levels often act as safety nets for stock prices, and the proximity of the support to the current trading level suggests a potential area of buying interest."

"However, there's a resistance zone between 4640 and 4700 that may present a challenge. If the stock breaks through this resistance, it has the potential to move higher, possibly reaching the all-time high levels around 4885 and beyond. The Relative Strength Index (RSI) is hovering around 51, indicating moderate strength. Investors who entered the stock at lower levels are advised to consider trailing stop losses to protect their gains," he further stated.

Disclaimer

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