Supreme Industries (SIL)
Supreme industries is stuck in a short term down trend and is struggling to come out.
A close above 220 could prove to be positive and take the stock to 240 over the short term.
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And whosoever fears Allaah and keeps his duty to Him, He will make a way for him to get out (from every difficulty).
And He will provide him from (sources) he never could imagine”=20
[al-Talaaq 65:2-3]
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From: investmentsupergrowth@googlegroups.com [mailto:investmentsupergrowth@googlegroups.com] On Behalf Of kukku picks Sent: Thursday, August 23, 2007 10:15 PM To: investmentsupergrowth@googlegroups.com Subject: [ISG:61015] Re: Supreme Industries (SIL)
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we have just discussed on the stock,
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investors are advised to take own informed decision whether to hold buy or sell.
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fundamental remains same, but bad sentiment can bring down to any lower levels. we have seen stock touching low of rs 153 few months back .
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so pl be careful before investing.
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pl do not invest in any of the stock unless full convinced because it is your own hard earned money.
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pl do not get carried away with above discussion ( as i hold the investment)
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investors should raise query before buying stock but we see maximum query after stock falls from the buying levels.
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as i have said earlier that at higher level it is just speculative position which takes the stock to very high levels as greed & money power takes full control of investors , punters & fund managers too & they forget about the fundamentals or authenticity of the same.=20
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greed is so powerful that even good investor too become blind & ignore many basic things. thus making bigger commitments & gets trapped in the end.
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we have seen stock prices coming down to just 1 % from peak levels in tech boom of 1999/2000 at that time also speculation was at peak.
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pl note in current bull run too there may be many many such stocks shooting up to higher & higher levels . many of the fund managers & market players too may be holding the same.=20
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so pl be very cautious. do not mention afterwords that no one has warned us.
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kukku
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On 23/08/07, AMITOR LOGISTICS wrote:=20
one can start adding below 200, can accumalate between 200 to 175,
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175 is bottom, if 175 is broken 165 is next bottom
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regards
amit anam
Guru wrote:
Kukkuji,
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This really looks good. I have added little quantity today and would go on adding during this correction.
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Thanks,
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Guru
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On 8/22/07, kukku picks wrote:=20
report has projected eps of 31, i think it is operational eps.
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even if it reports around 28 level which is quite possible, it may give dividend of around 100 % for 0708,
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so around 205 level dividend yield too is very good.
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for 0607 dividend was 75 % . now it is cum dividend 50 %.
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more over real estate encome to come in 0809.
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is it not safe bet to at current levels ?
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members may pl share view.
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kukku
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On 30/07/07, manikantan > wrote:=20
Supreme Industries (SIL)=20
Supreme Industries, dominant player in domestic plastic processing industry, has reported excellent performance for quarter ending Q4 FY2007 (Year end being June). =20
Net sales grew by 20.7% to Rs. 363.8 crore (Rs. 301.3 crore). OPM% improved substantially to 13.44% (10.36%) mainly due to cost control initiatives undertaken by the company. Consequently, PBT (before extraordinary items) spurted by 81.2% to Rs.29.1 crore (Rs.16 crore).=20
However, meager exceptional income of Rs.5 lakh (Rs.16.9 crore on account of profit on sale of shares of the company), and a higher tax rate of 35.3% due to higher deferred tax (15.8% ) led to decline in PAT to Rs.18.4 crore (Rs.27.3 crore).=20
For FY2007, Net Sales increased by 18.3% to Rs.1161.7 crore (Rs.982.1 crore). OPM% improved to 11.16% (9.9%). Consequently, PBT (before extraordinary items) spurted by 87.5% to Rs.63 crore (Rs.33.6 crore). After accounting for extraordinary income of Rs.10.4 crore on account of additional consideration on transfer of leasehold rights in a plot of land situated at IT Part, Kolkatta (Rs.16.9 crore), PAT grew @ 24.7% to Rs.50.1 crore (Rs.40.2 crore). =20
SIL has well diversified product portfolio across different segments such as Plastic Piping, Consumer Products such as furniture, Industrial Products and Packaging Products like Flexible Packaging film, Rigid PVC film, etc. Plastic industry is expected to grow @ 16-18% and to advantage of emerging opportunities, SIL has decided to make large investments in:- =20
=D8 Cross laminated film products - capacity to go up to 10,500 tons (6000 tons) in 2 phases. I st phase became operational in Sep. 2006, while 2nd phase will be operational by May, 2007.=20
=D8 Protective Packaging products - SIL plans to introduce several new varieties of products having applications in Insulation, Construction, Packaging and Sports Sectors, where better solutions will be provided at lower cost.=20
=D8 Plastics Piping system - setting up 1.5 lakh tpa new plant at Gadegaon, Maharashtra, (taking total capacity to 2.55 lakh tons), which is going to be the biggest plastic processing plant in India. This facility is expected to be fully operational by FY 2010. =20
In line with company’s policy to focus on its core activities and to exit from non-core business, SIL has discontinued its operations like Food Service Ware Products at Daman w.e.f . June 1,2007. Company has sold its PVC films & sheet production unit (10,000 tpa capacity) to Kloeckner Pentaplast, Germany for ~ Rs. 26 crore. However, company has entered into toll manufacturing agreement with Kloeckner. Under which, SIL will continue to operate the sold unit with effect from May 1, 2007 till eventual proposed sale of plant and machinery. Though exit from these businesses will hit topline, there will a significant improvement in profitability in absence of such drains. =20
Another trigger for company will be value unlocking from properties at Andheri (2 acres of land) The entire complex at Andheri consisting of 10 floors is likely to be ready for occupation during last quarter of 2008.=20
At CMP of Rs. 266.1, the share (Rs. 10/- paid up) is trading at 17.2 times FY 2007 EPS of Rs.15.5 and 8.5 times FY 2008 expected EPS of Rs. 31.4/-. In view of exciting future prospects, we recommend to “BUY” the share at CMP. = =20
Disclosures:
The author may have held / hold the above-mentioned securities in their personal accounts or on behalf of the clients. The information contained has been obtained from sources believed to be reliable. While taking utmost care in making the report, the authors or the company does not take responsibility for the consequences of the report. All investment and information and opinion are subject to change without notice. The investment recommendations may not be suitable to all the investors.=20
July 26 , 2007
