Supreme Petrochem
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Supreme Petrochem's recent management commentary highlights a strategic focus on long-term capacity expansion, particularly in high-value ABS compounds and specialized EPS grades, despite short-term margin pressures from volatile raw material costs. The company's INR 900 crore CAPEX plan, funded through internal accruals, aims to enhance production capabilities, with expectations that new capacities will be absorbed within 2-3 years, driven by domestic growth and export potential. Vista's financial outlook reflects a recovering revenue trend and improving margins, supported by the anticipated operational ramp-up of the ABS plant, which is crucial for future growth. However, the company faces headwinds from geopolitical tensions affecting raw material supply chains and competitive pressures from imports. Over the next 12-24 months, key opportunities include the successful qualification of new ABS capacity with OEMs and the growth of the Specialty Polymer Compounds business. Conversely, watchpoints include the potential for continued margin compression due to high input costs and the impact of geopolitical risks on supply stability
Why We Like This Stock
- Strategic focus on high-value ABS compounds and specialized EPS grades supports long-term growth
- Significant CAPEX plan aimed at enhancing production capabilities and market absorption of new capacities
- Improving revenue outlook driven by operational ramp-up of the ABS plant and domestic manufacturing growth
Things To Watch Out For
- Short-term margin pressures from volatile raw material costs and high-cost inventory
- Geopolitical tensions impacting raw material supply chains and pricing stability
- Intense competition from imports, exacerbated by temporary zero import duties, threatening market share
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,253 | 6,023 | 5,338 | 6,114 | 6,528 |
| Profit Before Tax (Cr.) | 438 | 496 | 453 | 680 | 678 |
| PBT Margin | 8.3% | 8.2% | 8.5% | 11.1% | 10.4% |
| Net Profit (Cr.) | 327 | 371 | 352 | 531 | 530 |
| Earnings Per Share | 17.4 | 19.8 | 18.7 | 28.2 | 28.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Deven Choksey | ► Add | 813 | 14-Jul-2026 |
Company Overview
Show Company Profile
Supreme Petrochem Limited engages in the manufacture and sale of polystyrene, expandable polystyrene, masterbatches and compounds of styrenics and other polymers, and extruded polystyrene insulation board in India and internationally. Supreme Petrochem Limited was incorporated in 1989 and is based in Mumbai, India.