Supreme Petrochem Ltd - Fundamentals - Stock Insights

 Supreme Petrochem Ltd - Fundamentals - Stock Insights

 

  • It is the largest producer and exporter of Polystyrene polymers in India, which is holding more than 50 Percent Market Share in the Indian Market. It is also the largest exporter of Polystyrene polymers from India and exporting to more than 100 Countries globally.
  • Supreme Petrochem Ltd is a Petrochemical company, which is a Joint venture between Supreme Industries and Rajan Raheja Group, founded in the year 1995. It is mainly engaged in the manufacturing of Polystyrene, Compounds of Styrenics and other polymers. The company's main products are General Purpose Polystyrene, High Impact and Expandable Polystyrene, Master batches and compounds.  
  • Generally, Polystyrene is a synthetic resin, which is used in variety of applications like Injection molding, extrusion, thermoforming and blow molding. It is used mainly in Automotive, Building insulation, Electronics, Medical supplies, Packaging, Protective lamination, Seating, Wind Turbines and Pipes.
  • General Purpose Polystyrene(GPPS) is one of the most widely used transparent polymers suitable for injection molding and extrusion application - Components in Consumer durables like Refrigerators, Stationery, Writing instruments, Rigid sheets, Medical diposables, beads and bangles.
  • High Impact Polystyrene are used in various applications like Consumer durables(Refrigerators, Air conditioner, cooler bodies), toys, computer accessories and Food Packaging. Expandable Polystyrene products are used in Cold Storages, Helmet, Infant car seats and 3D Panels for Construction.

 



 

  • Extruded Polystyrene(XPS) INSUboard are used in applications like insulation of commercial and residential buildings for energy conservation. Master batches are concentrates of colourants, specialty minerals and performance additives, which is used several applications - Automotive, Kitchen, Stationery, Textiles and Electrical.
  • It is the first and only plant of XPS operating company in India, in promoting the Green Building movement. It supports energy-efficient construction and helps to reduce carbon emissions.
  • ABS(Acrylonitrile Butadine Styrene) is an engineering thermoplastic widely used in Auto parts, Consumer products, Electronic Housings, Toys and other small appliances.
  •   The company is having the manufacturing facilities at Maharashtra and Tamil Nadu. It has an installed capacity of 33,00 MTA in Manali Township, Chennai and 4,22,000 MTA capacity in Amdoshi, Maharashtra.The company is also expanding it's Amdoshi plant to 5,22,000 MTA.
  • The Company has a strong relationship with leading OEM and ODMs for regular supply of products.
 




Fundamental Parameters(As on FY2024):

  • Market Cap: Rs. 12,600 Cr (Dec, 2024)
  • It is a Debt Free Company (Debt to Equity: 0.06 Times)
  • Interest Coverage Ratio(ICR): 53 Times
  • TTM PE: 31 Times
  • Book value: Rs.112 per Share (Current Market Price: Rs.670 per Share)
  • PEG Ratio: 0.67 Times
  • Promoter Holding: 64.24% (Key Promoters: Supreme Industries: Taparias, Rajan Raheja Group: Exide, Prism Johnson, Sonata Software)
  • Pledging on Promoter Holding: NIL
  • Institutional Holding: FII: 3.45% and DII: 2.81%
  • Debt: Rs.123 Cr (As on Sep, 2024: Lease Liabilities: Rs.123 Cr, No Short Term or Long Term Borrowings)
  • Reserves on Balance Sheet: Rs.2,062 Cr (As on Sep, 2024)
  • Compounded Sales Growth(5 Yrs CAGR): 10%
  • Compounded Profit Growth(5 Yrs CAGR): 46%
  • ROE(Return on Equity) for 5 Yrs: 31.5%
  • ROCE(Capital Employed) for 5 Yrs: 43.2%
  • Operating Cash Flow(FY24): Positive
  • Free Cash Flow Average(3 Yrs): Rs.283 Cr
  • Non-current Liabilities: Rs.147 Cr (FY24)
  • Cash Equivalents: Rs.593 Cr (As on Sep, 2024)




 

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