#SupremeIndustries NPM has jumped drastically in 2021.
From a mere 54 cr in 2008 to 978 cr in 2021, that's a huge leap in profits. For context, the dividend they paid out this year (279 cr) is 6x times their 2008 profit.
From a mere 54 cr in 2008 to 978 cr in 2021, that's a huge leap in profits. For context, the dividend they paid out this year (279 cr) is 6x times their 2008 profit.
#SupremeInd management has diligently worked to eliminate their debt from 2008 to being completely debt free now.
ICR has shot up from 3 to 50 over the last decade. This is a sign of hefty cash on the balance sheet. The fact that the management isn't paying it out as dividends shows their intention to reinvest it into their business.
#SupremeInd's NPM has doubled from 8% to 16%, indicating higher operating leverage for years to come. Expect a permanent PE rerating to a higher orbit.
It will not stop at a mere doubling just because revenues have doubled.
2X revenues * 2X margin = sweet sweet nectar.
It will not stop at a mere doubling just because revenues have doubled.
2X revenues * 2X margin = sweet sweet nectar.
The company has total 25 manufacturing units across 12 states in India.
Supreme is planning a capex of ~Rs. 400 crore (including maintenance capex) to increase its total manufacturing capacity by 10% to ~7,00,000 metric tonnes by 2022.
Supreme is planning a capex of ~Rs. 400 crore (including maintenance capex) to increase its total manufacturing capacity by 10% to ~7,00,000 metric tonnes by 2022.
#SupremeInd the share of total revenue from high-margin value-added products has expanded from ~30% in FY15, to ~40% in 9MFY21. The value added product category commands EBITDA margin of 17%+ vs. 15% company level margin.
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