Jefferies has maintained its buy rating on Supreme Industries, but slightly reduced the target price to ₹6,450 from ₹6,520, which still indicates a strong 44.7% upside from the current market price of ₹4,457.95. The brokerage cited near-term hiccups but remains optimistic about a recovery in the second half (H2) of FY24. Jefferies advised investors to “buy the weakness” in the stock.
Despite challenges with volatile raw material prices, Supreme’s margins remained robust at 14%, with value-added segments contributing 40% of sales. The brokerage views Supreme as a holistic play on housing, capital expenditure, and agriculture, with an estimated earnings per share (EPS) compound annual growth rate (CAGR) of over 22% in FY24-27.
With solid medium-term drivers intact, Jefferies suggests that investors could capitalize on the current dip in Supreme Industries for long-term gains.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice.
