Supreme Industries Limited stands as India's leading manufacturer of plastic piping solutions, offering 14,000+ SKUs across products like uPVC pipes, injection moulded PVC fittings, handmade fittings, HDPE pipe systems, etc., for diverse applications in plumbing, water tanks, fire protection, drainage, and more. The company operates as a diversified plastics manufacturer with operations spanning across multiple segments including plastic piping systems, packaging products, consumer products, and industrial components.
Supreme Industries has established itself as an acknowledged leader of India's plastics industry with a comprehensive portfolio of products serving various end-use industries. The company's business model focuses on manufacturing and distributing plastic products across four key segments: Plastics piping products, Industrial products, Packaging products, and Consumer products.
The company's extensive product range includes Plastic Piping System, Cross Laminated Films & Products, Protective Packaging Products, Industrial Moulded Components, Moulded Furniture, Storage & Material Handling Products, Performance Packaging Films, and Composite LPG Cylinders. This diversified approach allows Supreme Industries to cater to multiple markets including agriculture, construction, packaging, and consumer goods.
As of the latest reporting period, Supreme Industries commands a significant market presence with a Market Cap of ₹54,180 Crore. The company has demonstrated consistent financial performance with Revenue: ₹10,446 Crore and Profit: ₹961 Crore on a trailing twelve-month basis.
The company's financial strength is evident from its balance sheet position, as the Company is almost debt-free and maintains a cash surplus of ₹290 Crore as on December 31, 2024. This strong financial position enables the company to invest in growth opportunities and navigate market challenges effectively.
Supreme Industries' financial metrics reflect its market position and operational efficiency:
- Market Capitalization: ₹54,180 Crore (as of recent data)
- Annual Revenue: ₹10,446 Crore (trailing twelve months)
- Net Profit: ₹961 Crore (trailing twelve months)
- ROE: 16% (indicating good returns on equity)
- Pre-tax Margin: 11% (healthy operational efficiency)
- PE Ratio: 58.7 (premium valuation reflecting market confidence)
- Promoter Holding: 48.8% (strong promoter participation)
The company's Q3 FY25 performance shows some challenges amid market volatility. The company's consolidated net profit slipped 27.01% to ₹186.97 Crore in Q3 FY25, as against ₹256.17 Crore posted in Q3 FY24. However, Revenue from operations rose 2.48% year-on-year (YoY) to ₹2,509.88 Crore in the quarter ended December 31, 2024.
The company's value-added products segment showed resilience, with overall turnover of value-added products remaining at ₹961 Crore during Q3 FY25 of the current year against ₹853 Crore in the corresponding quarter of the previous year, achieving growth of about 13%.
The plastic piping products division represents the company's largest business segment, contributing 67% in 9M FY25 vs 66% in FY23 to total revenue. This division encompasses a comprehensive range of piping solutions, including unplasticized polyvinyl chloride (uPVC) pipes, injection molded PVC fittings and handmade fittings, Polypropylene random co-polymer pipe system, inspection chambers, manholes, bath fittings and sanitaryware roto molded tanks and fittings and solvents, industrial piping system, fire sprinkler system, and others.
The industrial products segment focuses on industrial components, material handling system and pallets - roto molded crates, pallets, and garbage bins and composite Liquefied Petroleum Gas (LPG) cylinders. This division serves various industrial applications and contributes to the company's diversified revenue stream.
Supreme Industries' packaging division manufactures flexible packaging film, protective packaging, and cross-laminated film products. This segment caters to the growing demand for packaging solutions across various industries.
The consumer products division is engaged in manufacturing of furniture, serving the retail and consumer market segments with molded furniture solutions.
Supreme Industries continues to invest in capacity expansion and product development. The company has announced three new greenfield plants for the Plastic piping division at Jammu, Bihar, and Madhya Pradesh shall be taken up for execution in the coming financial year. Land at all three places is in the company's possession, and detailed plans for products and capacities are being worked out.
The company is also expanding its product portfolio, with equipment having arrived for the PP silent pipe system, which shall be launched in technical collaboration with Poloplast Gmbh of Austria during the 1st quarter of FY 25-26. Additionally, the newly introduced PERT Piping System and PE single-wall corrugated pipes are witnessing encouraging response.
The company faces certain headwinds in its core piping business, as in 9M FY25, the segment was impacted by unfavorable PVC resin prices and slower-than-expected demand recovery from infrastructure spending. The management has acknowledged these challenges. M. P. Taparia, Managing Director, The Supreme Industries Limited, said, "Plastic Pipe Systems business growth continues to be adversely affected due to adverse PVC resin prices scenario and demand from infra spend not picking up as envisaged."
However, the company remains optimistic about future prospects, expecting good demand from Agri and Housing segments for the last quarter. The management also anticipates some improvement in the infra sector demand, as this is the last quarter of the financial year.
Supreme Industries has maintained a consistent dividend policy, with the Company maintaining a healthy dividend payout of 39.6%. For FY25, SUPREME INDUSTRIES declared a dividend amounting to ₹34.0 per share, demonstrating the company's commitment to returning value to shareholders.
Supreme Industries Limited represents a significant player in India's plastic products manufacturing sector, with a diversified business model, strong financial position, and strategic expansion plans. While facing near-term challenges related to raw material pricing and demand dynamics, the company's market leadership position, debt-free status, and continuous innovation efforts position it well for long-term growth in India's expanding plastics market.
