Post on 21-Sep-2020
Akhil Parekh • akhil.parekh@elaracapital.com • +91 22 6164 8519
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Elara Securities (India) Private Limited
Juggernaut
Leader in plastics: well-diversified portfolio and pan-India reach
Supreme Industries (SIL), a pioneer in the plastics pipe industry in India,
remains one of the country’s largest plastic processors with annual sales
volume of more than 0.4mn tonnes. SIL has one of the most diversified
revenue models among peers with a product portfolio across five
verticals. The company’s manufacturing base spans across 25 plants
with presence in 10 states and a union territory. SIL continues to enjoy
the largest share of the plastics piping and fittings segment with a ~9%
market share as on FY18. Apart from this, the company remains one of
the market leaders in plastic furniture, packaging products and
industrial product segments with a market share of 11%, 26% and 13%,
respectively. Despite increased competition from the organized and
unorganized firms, SIL has posted a sales CAGR of 14%, an EBITDA
CAGR of 19% and a PAT CAGR of 23% with a book value CAGR of 21%
over FY08-18.
Value creation: consistent increase in value-added products
Through technical collaborations with global innovators, SIL has
consistently improved all its product segments. As a result, sales
contribution from value-added products (VAP) increased from 29.8% in
FY12 to 35.9% in FY18. The company posted a VAP sales CAGR of 13%
over the same period. We expect contribution of VAP (EBITDAM: >17%)
to total sales to remain at 35%+ until FY21E, allowing SIL to maintain a
margin level of 15%+ over the next three years.
Visible growth drivers: strong capex to drive medium-term growth
As on FY18, total capacity stands at 568,000 tonnes with plastics piping
systems capacity of 402,000 tonnes, packaging of 65,000 tonnes,
industrial of 69,000 tonnes, consumer of 29,000 tonnes and composite
cylinders of 3,000 tonnes. Over FY19-21E, we expect capacity to reach
700,000 tonnes, incurring capex of INR 11,000mn.
Valuation We initiate coverage of Supreme Industries with a Buy rating and a 12-
month target price of INR 1,537, implying 29% upside from the current
levels. Our TP is based on 30x FY21E EPS of INR 51. Our one-year
forward target multiple of 30x is at par with its five-year P/E median of
30x and at a 12% discount to the company’s three-year P/E median of
34x. The stock currently trades at 31x FY19E P/E, 28x FY20E P/E and
23x FY21E P/E. In our view, a company with ex-cash ROCE of 24%
(likely to reach 26.6% in FY21E), D/E of 0.1x (likely to reach 0.03x in
FY21E) and a book value CAGR of 17% in the past five years and 21%
in the past 10 years (likely a 19% CAGR by FY21E) trading at 23x FY21E
P/E presents a good buying opportunity.
Price performance
Source: Bloomberg
Key Financials YE
March
Revenue
(INR mn)
YoY
(%)
EBITDA
(INR mn)
EBITDA
margin (%)
Adj PAT
(INR mn)
YoY
(%)
Fully DEPS
(INR)
RoE
(%)
RoCE
(%)
P/E
(x)
EV/EBITDA
(x)
FY18 49,663 11.3 7,871 15.8 4,311 0.7 33.9 24.0 20.3 35.1 19.2
FY19E 56,696 14.2 8,674 15.3 4,879 13.2 38.4 23.4 19.5 31.0 17.2
FY20E 64,568 13.9 10,073 15.6 5,333 9.3 42.0 21.6 19.9 28.4 14.6
FY21E 74,207 14.9 11,873 16.0 6,480 21.5 51.0 22.2 20.9 23.4 12.1
Note: pricing as on 28 December 2018; Source: Company, Elara Securities Estimate
India | Containers & Packaging 31 December 2018
Initiating Coverage
Supreme Industries
Rating: Buy Target Price: INR 1,537
Upside: 29%
CMP: INR 1,191 (as on 28 December 2018)
Key data
Bloomberg /Reuters Code SI IN/SUPI.BO
Current /Dil Shares O/S (mn) 127/127
Mkt Cap (INR bn/USD mn) 152/2,174
Daily Volume (3M NSE Avg) 90,023
Face Value (INR) 2
1 USD= INR 69.9
Note: *as on 28 December 2018; Source: Bloomberg
Price & Volume
Source: Bloomberg
Shareholding (%) Q3FY18 Q4FY18 Q1FY19 Q2FY19
Promoter 49.7 49.7 49.7 49.7
Institutional Investor 29.1 29.2 28.5 29.2
Other Investor 4.2 4.4 5.2 4.5
General Public 17.0 16.7 16.6 16.6
Source: BSE India
Price performance (%) 3M 6M 12M
Sensex (0.4) 1.8 5.9
Supreme Industries 18.9 5.8 (7.5)
Astral Poly Technik 17.4 16.0 39.2
Source: Bloomberg
70
80
90
100
110
120
Dec-17 Mar-18 Jun-18 Sep-18 Dec-18
Re
ba
sed
to
10
0
Supreme Industries Sensex
0
1
2
3
800
1,000
1,200
1,400
1,600
Dec-17 Mar-18 Jun-18 Sep-18 Dec-18
Vol. in mn (RHS) Supreme Industries (LHS)
Supreme Industries
2 Elara Securities (India) Private Limited
Valuation trigger
Source: Bloomberg, Elara Securities Estimate
Valuation overview
Year FY21E
EPS (INR) 51
One-year forward P/E median (three-year average) (x) 34
One-year forward P/E median (five-year average) (x) 30
One-year forward P/E median (eight-year average) (x) 24
Current market cap (INR mn) 151,334
No of shares (mn) 127
Target multiple (x) 30
TP (INR) 1,537
CMP (INR) 1,191
Upside (%) 29
Note: pricing as on 28 December 2018; Source: Elara Securities Estimate
Valuation driver
FY18 FY19E FY20E FY21E
P/E (x) 35.1 31.0 28.4 23.3
EV/EBITDA (x) 19.2 17.2 14.6 12.1
EV/Sales (x) 3.0 2.6 2.3 1.9
ROE (%) 24.0 23.4 21.6 22.2
ROCE (%) 20.3 19.5 19.9 20.9
Ex-cash ROCE (%) 23.6 22.9 24.2 26.6
Dividend payout (%) 42.6 41.7 41.7 40.2
Source: Company, Elara Securities Estimate
Investment summary
Growth drivers, such as PMAY, Swachh
Bharat and Smart City Mission, are likely
to drive a plastics piping systems volume
CAGR of 9% over FY18-21E
Derisked business model with five
verticals: plastics piping systems,
packaging, industrial, & consumer
products and composite cylinders
Strong cashflow-generating business
model; allows healthy dividend payout
ratio of ~40% of PAT
Valuation trigger
1. Healthy capex in pipeline with likely
investment of ~INR 1,100mn over the
next three years
2. Margin to expand by 100bp by FY21E
over 1HFY19 (margin at 15.0%) with
35%+ contribution from VAP
Key risks
Slowdown in government initiatives,
poor Monsoon or slower construction
activities can negatively impact plastics
piping systems segment’s volume CAGR
of 9% over FY18-21E
Sharp rise in crude prices will negatively
affect PVC resin prices and overall
margin
Our assumptions
Volume CAGR of 9% over FY18-21E
Increase in price realization of 5% over
FY18-21E, led by improving product mix
in industrial products
EBITDA margin improvement to 16.0%
by FY21E from 15.0% in 1HFY19
1
2
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
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Jun
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Oct
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Margin to expand by 100bp over 1HFY19 (margin at
15.0%) with 35%+ contribution from VAP
Healthy capex in pipeline with likely investment of ~INR 1,100mn over the
next three years
Supreme Industries
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3 Elara Securities (India) Private Limited
Financials (YE March) Income Statement (INR mn) FY18 FY19E FY20E FY21E
Net Revenues 49,663 56,696 64,568 74,207
EBITDA 7,871 8,674 10,073 11,873
Add:- Non operating Income 48 75 90 140
OPBIDTA 7,919 8,749 10,163 12,013
Less :- Depreciation & Amortization 1,672 1,938 2,193 2,387
EBIT 6,247 6,812 7,970 9,626
Less:- Interest Expenses 219 200 150 105
PBT 6,028 7,171 7,820 9,521
Less :- Taxes 2,057 2,462 2,682 3,266
Adjusted PAT 3,971 4,709 5,137 6,255
Add/Less: - Extra-ordinaries - - -
Reported PAT 4,311 4,879 5,333 6,480
Balance Sheet (INR mn) FY18 FY19E FY20E FY21E
Share Capital 254 254 254 254
Reserves 18,695 22,497 26,472 31,285
Borrowings 2,324 1,824 1,324 824
Deferred Tax (Net) 1,134 1,229 1,331 1,455
Total Liabilities 22,549 25,946 29,523 33,817
Gross Block 25,883 30,009 33,959 36,959
Less:- Accumulated Depreciation 12,225 14,163 16,356 18,743
Net Block 13,658 15,846 17,603 18,216
Add:- Capital work in progress 626 450 509 554
Investments 2,476 2,476 2,476 2,476
Net Working Capital 5,789 7,174 8,935 12,571
Other Assets - - - -
Total Assets 22,549 25,946 29,523 33,817
Cash Flow Statement (INR mn) FY18 FY19E FY20E FY21E
Cash profit adjusted for non cash items 5,725 6,366 7,631 8,977
Add/Less : Working Capital Changes (937) 112 (721) (879)
Income Taxes paid 2,057 2,462 2,682 3,266
Operating Cash Flow 2,731 4,016 4,228 4,832
Less:- Capex (2,855) (3,950) (4,009) (3,045)
Free Cash Flow (125) 66 218 1,787
Financing Cash Flow (283) (500) (500) (500)
Net change in Cash (438) 1,497 1,039 2,757
Ratio Analysis FY18 FY19E FY20E FY21E
Income Statement Ratios (%)
Revenue Growth 11.3 14.2 13.9 14.9
EBITDA Growth 3.3 10.2 16.1 17.9
PAT Growth 0.7 13.2 9.3 21.5
EBITDA Margin 15.8 15.3 15.6 16.0
Net Margin 8.7 8.6 8.3 8.7
Return & Liquidity Ratios
Net Debt/Equity (x) 0.1 0.1 0.0 0.0
ROE (%) 24.0 23.4 21.6 22.2
ROCE (%) 20.3 19.5 19.9 20.9
Per Share data & Valuation Ratios
Diluted EPS (INR/Share) 33.9 38.4 42.0 51.0
EPS Growth (%) 0.7 13.2 9.3 21.5
DPS (INR/Share) 14.4 20.0 17.5 20.5
P/E Ratio (x) 35.1 31.0 28.4 23.4
EV/EBITDA (x) 19.2 17.2 14.6 12.1
EV/Sales (x) 3.0 2.6 2.3 1.9
BVPS (INR) 149 179 210 248
Price/Book (x) 8.0 6.7 5.7 4.8
Dividend Yield (%) 1.2 1.3 1.5 1.7
Note: pricing as on 28 December 2018; Source: Company, Elara Securities Estimate
Revenue & margin growth trend
Source: Company, Elara Securities Estimate
Adjusted profit growth trend
Source: Company, Elara Securities Estimate
Return ratios
Source: Company, Elara Securities Estimate
15.8
15.3
15.6
16.0
14.5
15.0
15.5
16.0
16.5
30,000
40,000
50,000
60,000
70,000
80,000
FY18 FY19E FY20E FY21E
(%)
(IN
R m
n)
Net Revenues EBITDA Margin
0.7
13.2
9.3
21.5
0
5
10
15
20
25
3,000
4,000
5,000
6,000
7,000
FY18 FY19E FY20E FY21E
(%)
(IN
R m
n)
Adjusted PAT PAT Growth
24.023.4
21.622.2
20.319.5 19.9
20.9
15
17
19
21
23
25
FY18 FY19E FY20E FY21E
ROE (%) ROCE (%)
Supreme Industries
4 Elara Securities (India) Private Limited
Pan-India actor
Well-entrenched national brand
Starting from two tin shed establishments at Wadala and
Naigaum in Mumbai with shareholder equity of INR
1.7mn, SIL has come a long way. In the past six decades,
the company has set up 25 manufacturing plants in 10
States and Union territories with a wide distribution
network comprising 3,303 distributors. During FY08-18,
SIL’s gross block had expanded at a CAGR of 12%. The two
key parameters for a company to succeed in this industry
are a pan-India presence and a wide distribution network.
SIL scores well on both parameters.
Widening distribution network
SIL has invested consistently in widening its distribution
reach. It has extended its reach and strengthened its
distribution network at a CAGR of 10% over FY13-18.
When SIL was been unable to find distributors to buy and
stock products for redistribution through the retail chain
in an area, the company has sold products directly to big
retailers there. It has strengthened its supply chain to
service those retailers in a cost-efficient manner.
Strongest manufacturing base among peers
SIL has the widest reach among peers (Ashirvad Pipes
[Not Listed], Astral Poly [ASTRA IN, CMP: INR 1,155, Not
Rated], Finolex Industries [FNXP IN, CMP: INR 553, Not
Rated], Jain Irrigation [JI IN, CMP: INR 69, Not Rated] and
Prince Pipes [Not Listed]). SIL has plants across the
country. In North India, the company has units in Punjab
and Uttar Pradesh. In West India, it has factories in Dadra
& Nagar Haveli, Rajasthan, Gujarat, Maharashtra and
Madhya Pradesh. In South India, it has plants in Tamil
Nadu and Puducherry while in East India SIL has capacity
built at Assam and West Bengal. SIL has two upcoming
units in Assam and Telangana.
Making of plastics conglomerate
Pan-India distribution with manufacturing base across India
Well-diversified product portfolio across five verticals
Strong technical collaborations with MNC
Exhibit 1: Increase in distribution reach across segments
Plastics piping systems Consumer products - furniture Packaging products
Industrial products - materials
handling
SIL total distribution reach
Source: Company, Elara Securities Research
500
600
700
800
900
1,000
1,100
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(no
)
500
600
700
800
900
1,000
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(no
)
500
600
700
800
900
1,000
1,100
1,200
1,300F
Y1
3
FY
14
FY
15
FY
16
FY
17
FY
18
(no
s.)
100
150
200
250
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(no
s.)
2,0
51
2,2
57
2,4
09
2,7
51
2,9
73
3,3
03
1,500
2,000
2,500
3,000
3,500
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(no
s.)
Supreme Industries
Supreme Industries
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5 Elara Securities (India) Private Limited
Exhibit 3: Peer pan-India manufacturing base
Company States #Distributors #Touch points
Supreme Industries
Punjab, Uttar Pradesh, Dadra and Nager Haveli, Rajasthan, Maharashtra, Madhya Pradesh, Tamil Nadu, Puducherry, Assam and West Bengal
3,303 984 for plastic pipes
25,000
Astral Poly Maharashtra, Gujarat, Tamil Nadu, Rajasthan, Uttarakhand and UP
2,550 750 for plastic pipes, 1,800 for adhesive
28,000
Finolex Industries
Maharashtra and Gujarat
800
22,000
Prince Pipes
Maharashtra, Tamil Nadu, Uttarakhand, Dadra and Nagar Haveli
750
NA
Ashirwad Pipes
Karnataka 1,100
36,000
Note; FY18, Source: Company, Elara Securities Research
Diversified product portfolio
SIL has one of the most diversified product portfolios
among peers. A well-diversified product portfolio has
reduced the risk relating to its performance and its
dependence on a particular end-user industry in any year.
The company operates in four segments: plastic pipes,
packaging products, industrial products, consumer
products and composite cylinders.
Offers widest range of SKU across categories
In the plastics piping segment, SIL offers 7,833 products as
on FY18 (addition of 603 products during FY18) for 29
different applications. It is the only company which offers
pipes and fittings from major polymers, such as PVC,
CPVC, PE and PPR. SIL is a leader in this segment with
12.5% of the organized domestic plastics piping segment
and 8.65% of the overall plastics piping segment. Major
competitors in the plastics piping segment are Ashirvad
Pipes, Astral Poly, Finolex Industries, Jain Irrigation and
Prince Pipes.
In the packaging segment, the company has three sub-
segments: specialty films, protective packaging products &
cross laminated films. In the consumer products segment,
SIL offers furniture primarily used in households and
offices. Major firms in the consumer products space are
Nilkamal and Wim Plast.
In the industrial products segment, SIL has two sub-
segments: industrial components (consumer appliances &
automobile components) and materials handling system
(crates, pallets & garbage bins). Maruti Suzuki India,
Honda, Piaggio and Whirlpool India are some big clients
in industrial components sub segment. The materials
handling division has products, such as crates for
industrial, retailing, warehousing dairy, fishery, fruit &
vegetable vending entities, bottle crates for soft drink and
beverage industry, pallets for warehousing, roto moulded
crates and garbage bins.
Exhibit 2: A diversified product portfolio as on FY18
Supreme Industries Astral Poly Finolex Industries
Prince Pipes Ashirvad Pipes
Source: Company, Elara Securities Research
Plastics Piping
Systems55%
Packaging Products
21%
Industrial 16%
Consumer7%
Composite1%
Piping74%
Adhesives26%
PVC42%
Pipes and Fittings
55%
Power3%
Pipes and Fittings100%
Pipes & Fittings100%
Supreme Industries
6 Elara Securities (India) Private Limited
As part of the new initiative, SIL had forayed into
composite cylinders in FY12-13. Some clients include the
Bangladesh government, South Korea government, and
Hindustan Petroleum Corporation or HPCL (educational
orders as on now). A major competitor in the composite
cylinders segment is Time Technoplast (TIME IN, CMP; INR
100, Not Rated).
A diversified product portfolio catering to different
industries has helped SIL to reduce volatility in EBITDA
margins. The company’s EBITDA margin is less lumpy than
peers as indicated by the low variance.
Exhibit 4: Comprehensive portfolio of value-added products
Business vertical Product portfolio Targeted customer segment
Plastics piping systems
uPVC pipes, injection moulded fittings, handmade fittings, polypropylene random, co-polymer pipes & fittings, HDPE pipe systems, CPVC pipe systems, inspection chambers, water tanks, septic tanks, toilets, DWC HDPE pipe systems, bath fittings, solvents
Potable water supply Irrigation Sewage & drainage
Plumbing & sanitation Industrial pipe system Fire sprinkler system
Consumer products Furniture Household Office establishments Institutions
Industrial products Industrial components Materials handling products (crates, pallets, bins & dustbins)
Auto sector Electronic household
appliances
Water purification – filters
Soft drink companies Agriculture & fisheries
Packaging products Specialty films Protective packaging, cross-laminated film and cross-line bonded film products
Electronics Food industry Sports goods Insulation Construction Agriculture
Floriculture Horticulture Grain storage Tarpaulin Pond lining
Composite products LPG cylinders Retail / Household
Source: Company, Elara Securities Research
Exhibit 5: Well-diversified portfolio leads to the least margin variance among peers
Supreme Industries Astral Poly
Prince Pipes Finolex Industries
Source: Company, Elara Securities Research
14.5
15.0
15.5
16.0
16.5
17.0
17.5
FY13 FY14 FY15 FY16 FY17 FY18
Margin variance: 0.5%
10
11
12
13
14
15
16
FY13 FY14 FY15 FY16 FY17 FY18
Margin variance: 1.6%
6
8
10
12
14
FY13 FY14 FY15 FY16 FY17
Margin variance: 3.3%
5
10
15
20
25
FY13 FY14 FY15 FY16 FY17 FY18
Margin variance: 18.1%
Supreme Industries
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7 Elara Securities (India) Private Limited
Market leader in a plastics piping segment
SIL is a market leader in the plastics piping segment with
total capacity of ~400,000 tonnes. Although the plastics
piping segment has been in a fierce competition with
several regional and national firms, the organized
segment is dominated by only six companies; Supreme
Industries, Finolex, Astral Poly, Prince Pipes, Ashirvad Pipes
and Jain Irrigation. SIL’s corporate presentation states
total market size of domestic plastic pipes is ~INR
315,000mn, with 70% of the market captured by
organized firms and the rest by unorganized entities.
These six companies make up ~40% of total market.
Currently, SIL holds a 13% share in the organized plastics
piping segment and 9% in total pipes segment in India.
The company has been able to retain its leadership
position by continuing to expand its distribution channel
and retail touch points. As on FY18, SIL has 984 channel
partners with more than 25,000+ retail touch points. Also,
the company has expanded its product portfolio. As on
FY18, SIL had 7,833 products for 29 different application
systems. It is the only company in India supplying pipes
and fittings manufactured from all major polymers — PVC,
CPVC, PE and PPR.
Exhibit 6: Consistent addition of SKU & distribution
channel in plastic piping systems segment
Source: Company, Elara Securities Research
Exhibit 7: Stable operating margin of 14-15% for the
plastics piping systems segment
Source: Company, Elara Securities Research
5,800
6,156
6,500
6,800
7,300
7,833
600
700
800
900
1,000
1,100
5,000
5,500
6,000
6,500
7,000
7,500
8,000
FY13 FY14 FY15 FY16 FY17 FY18
(no
s)(no
s)
SKUs Distributors
17
,02
0
20
,60
1
21
,12
5
16
,05
3
25
,53
1
27
,27
2
16.0
15.0
13.4
14.2
15.5
14.1
12
13
14
15
16
17
5,000
10,000
15,000
20,000
25,000
30,000
FY13 FY14 FY15 FY16 FY17 FY18
(%)
(IN
R m
n)
Sales EBITDAM
India’s plastic pipes industry (INR 315,000mn)
Organized (70%)
Unorganized (30%)
Supreme Industries
(INR 27,000mn)
Astral Poly (INR
15,000mn)
Ashirvad Pipes (INR 24,000mn)
Prince Pipes (INR
12,600mn)
Finolex Industries
(INR 22,501mn)
Jain Irrigation
(INR 18,000mn)
Note: FY18, Source: Company, Elara Securities Research
Exhibit 8: Annual turnover of India’s plastic pipe industry
Supreme Industries
8 Elara Securities (India) Private Limited
Packaging products: margin-accretive business
SIL makes specialty films, protective packaging products
and cross-laminated film products. The company has tie-
ups with global industry leaders, thereby giving it access
to the latest technology and innovations. Despite
increased competition from new and existing firm, SIL has
been able to retain its customer base and grow at a
moderate pace of CAGR 6% (volume wise) over FY13-18,
because of the high quality of its products and servicing
standards. In the specialty films segment, SIL sells high
value-added products, such as high gloss &
thermoforming films and pouches as well as bulk bags.
Exhibit 9: Packaging products contributes one-fifth to
overall sales
Source: Company, Elara Securities Research
Exhibit 10: Packaging products contributes one-third
to overall EBITDA
Source: Company, Elara Securities Research
Exhibit 11: Protective packaging is 10% of total sales
Source: Company, Elara Securities Research
SIL is among market leaders in the protective packaging
segment with around 26% market share. In this segment,
the company primarily caters to packaging, civil and
insulation sectors. New applications and strong focus on
product development have kept other firms at bay.
Several unorganized companies operate in this space,
which are unable to compete with SIL in terms of quality
and servicing standards. Protective packaging contributes
~45% to SIL’s packaging business and ~9% to overall
business.
Exhibit 12: SIL maintains market leadership in the
protective packaging space
Source: Company, Elara Securities Research
SIL has lion’s share of 30% in the expanded polyethylene
(EPE) foam. India’s EPE foam market stands at INR
8,000mn as per SIL corporate presentation.
Exhibit 13: EPE foam a major contributor to protective
packaging
Source: Company, Elara Securities Research
SIL is the only company in India that has the technology
to manufacture cross-laminated films, according to the
management. It sells this product under the brand,
Silpaulin. Similar to protective packaging and packaging
films, there are several unorganized firms which operate
in this segment in India. With the Goods and Services Tax
(GST) rollout, we believe SIL will be able to capture market
share from these firm. It also has made a maiden entry in
the US market by sending its first consignment of
43 44 47 52 55 53 55 55 55
24 24 24 21 22 23 23 22 21
0
20
40
60
80
100
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(%)
Plastic pipes Packaging Industrial Consumer Composite
36 36 42 52 57 49 49 52 50
32 35 32
27 27
30 32 29 27
0
20
40
60
80
100
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(%)
Plastic pipes Packaging Industrial Consumer Composite
6
7
8
9
10
11
12
13
14
30
35
40
45
50
55
60
FY13 FY14 FY15 FY16 FY17 FY18
(%)
(%)
% of SIL packaging % of total SIL (RHS)
30
27 26
24
25
26
20
22
24
26
28
30
32
FY13 FY14 FY15 FY16 FY17 FY18
(%)
Protective packaging as a % of market share
47 52 53 53 54 52
0
20
40
60
80
100
FY13 FY14 FY15 FY16 FY17 FY18
(%)
Nitrilile PVC Rubber foam
Cross linked foam rolls (Chemicals)
Cross linked foam (Block)
Air Bubble film
EPE Foam
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tarpaulins in March 2017 to an US entity, which will sell
Silpaulin through online websites. The company is
negotiating with retail chain stores in the US to sell
Silpaulin from stores and through online websites. SIL also
has entered new markets, such as the UK, Denmark and
Australia.
SIL has been able to create an entry barrier in this segment
by patenting its technology. Apart from this, the company
has been able to develop several additional fabricated
applications other than tarpaulin from the film which has
enabled it to capture market share from incumbent
companies.
Consumer products: good diversification from core
SIL is the second-largest firm in this segment with current
processing capacity of 29,000 tonnes. The company has
an 12% market share in the INR 30,000mn plastics
furniture industry. It manufactures injection moulded and
blow moulded furniture with five units at Puducherry
(Union Territory), Durgapur (West Bengal), Derabassi
(Punjab), Gadegon (Maharashtra) and Guwahati (Assam).
Growth in this business can primarily be attributed to SIL’s
focus on increasing its distribution setup (currently has
900 channel partners vs. 814 in FY17) and wide
acceptance of its products in the premium segment. SIL’s
furniture is currently available through a nationwide
network of ~11,000 retailers.
The GST rates for consumer furniture were initially
decided at 28%, which led to sluggishness in furniture
sales during initial part of FY18. Later, the GST rates were
dropped from 28% to 18% which bolstered growth
during the second half of FY18 (SIL grew by 16% during
2HFY18). The Indian consumer furniture market is 30%
unorganized and 70% unorganized as per the industry
report. Post the GST rollout, we anticipate some shift to
happen from the unorganized to the organized one.
During FY18, SIL introduced seven furniture models,
including fusion series cupboards, two-seater Rattan finish
loveseat sofa and blow moulded tables.
Exhibit 14: SIL remains one of the market leaders in
plastic furniture segment
Note: FY18; Source: Company, Elara Securities Research
Exhibit 15: India’s listed plastic furniture firms’ market
share
Note; FY18: Source: Company, Elara Securities Research
Apart from the domestic market, SIL has started exploring
the international markets. During FY18, the company
started exporting to 12 countries.
Industrial products: stable B2B business segment
In the industrial products segment, SIL operates in two
sub-segments — industrial components and materials
handling. The industrial components segment primarily
caters to automobile and consumer appliances industries.
Some of its clients in the auto component space include
Tata Motors, Piaggio, Honda and Bajaj Auto. Clients in the
consumer appliances space include air conditioner or AC
manufacturers and washing machine manufacturers,
such as Whirlpool of India. During FY18, this segment
posted volume growth of 31% and value growth of 18%.
The materials handling division manufactures industrial
crates, pallets and bottle crates. Materials handling
volume grew by 18% during FY18. One key reason SIL has
been successful in this space is it has designed a crate
model to service large customers and has been successful
in obtaining a sizeable business. Management expects
sustained growth from this segment for the next few
years. Apart from crates, SIL has gained expertise in
manufacturing pallets, used especially in supply chain and
warehousing segments. SIL currently holds a 15% market
share in materials handling with a market size of INR
16,000mn.
Composite cylinders: yet another product innovation
As a part of a new initiative, SIL forayed into the composite
cylinder segment in 2012. Apart from SIL, Time
Technoplast is the other major company in India
operating in this segment. SIL currently has capacity of
3,000 tonnes (450,000 units pa) while Time Technoplast
(LiteSafe brand) has 1.4mn unit per year capacity,
according to TIME management. TIME remains the bigger
firm of two with approval from 48 countries and
supplying to 25 countries. The company also produces
the largest range of composite cylinders from 2kg to 22kg.
21,080
3,518 3,877
1,027 653
0
5,000
10,000
15,000
20,000
25,000
Nilkamal Supreme WimPlast
PrimaPlastics
NationalPlastics
(IN
R m
n)
Nilkamal70%
Supreme12%
Wim Plast13%
Prima Plastics
3%
National Plastics
2%
Supreme Industries
10 Elara Securities (India) Private Limited
Entry barriers in this segment are high, given the number
of approvals required from government bodies. SIL has
received approvals from Indian unit of Germany based
Technischer Überwachungsverein (TUV), India based
Petroleum and Explosives Safety Organization (PESO) and
Korean Gas Safety (KGS). SIL’s BIS Standard is complete
and BIS 16646 has been published for Type IV composite
cylinders. This approval is a must so that (oil marketing
companies (OMC) can start procuring these composite
cylinders from it.
During FY18, SIL started supplying to South Korea and
Bangladesh. While initially there were some technical
issues, as per the management, they have been rectified.
The company has started receiving repeat orders. It also
has received positive feedback for its cylinders and started
supplying in small quantities to private gas companies in
Goa, Belgaum and Bengalaru. SIL acquired a 10% interest
stake in HPC research, a startup company based in Czech
Republic focused on R&D in composite cylinders.
Although sales contribution from this segment is small, we
believe composite cylinders have huge scope in India,
where metal cylinders will be replaced by composite
cylinders. Composite cylinders provide several benefits
over metal ones. They are lightweight, fire & UV resistant,
rust as well as corrosion-proof, aesthetically good and
easily allow customers to monitor the level of gas in the
cylinder.
Strong technical collaborations
Over the years, SIL has pursued technical collaborations
with global innovators to supplement its production
capability and cater to new applications coupled with a
low-cost manufacturing base.
Exhibit 16: Foreign technical collaborators
Company Product line
Rasmussen Polymer Development, Switzerland
Cross-laminated films
Wavin, Netherlands Plastic Piping systems
Foam Partner, Switzerland Reticulated PU foam
Sanwa Kako, Japan 2 stage foam
PE Tech, South Korea Cross-linked foam
Kumi Kasai, Japan Automotive components
Lomold (PTY), South Africa Composite pallets
Kautex GMBH, Germany Composite LPG cylinders
Spears, US Fire sprinklers pipes from CPVC
Source: Company, Elara Securities Research
SIL’s strong technical collaborations with international
firms have enabled it to introduce various path-breaking
technologies. In the plastics piping segment, the company
introduced the soil, waste and rain (SWR) drainage
system, silent pipe system, aqua gold high pressure
plumbing system, hot & cold water system, underground
drainage system, CPVC fire sprinklers, and HDPE pipe
system for sewage & drainage.
In the furniture segment, the company has been a pioneer
in lacquered and upholstered moulded plastic furniture. It
is the only company in India which has the technology to
manufacture patented cross-laminated film products
under its brand, Silpaulin. Silpaulin is one-seventh the
weight of conventional cotton tarpaulin, but also has a
high strength-to-weight ratio. The company has launched
many innovative products in India in the packaging
segment, which primarily includes reticulated foam for air
filtration, sound absorbing open cell foam, high
temperature and fire-resistant melamine foam,
waterproofing membrane made from composites of foam
products, bonded foam for acoustic insulation, floor
protector made from foam and XF film. In the industrial
products segment, SIL was the first to launch injection-
moulded plastic pallets.
Through sustained product innovation, SIL increased its
product portfolio catering to multiple industries. A strong
technical collaboration has enabled SIL to increase
contribution from value-added products (operating
margin of >17%) from 29.8% in FY12 to 36% in FY18. Sales
of these value-added products rose from INR 8,731mn to
INR 17,884mn over FY12-18, at a 12% CAGR.
Exhibit 17: Sustained sales improvement in VAP
Source: Company, Elara Securities Research
8,000
10,000
12,000
14,000
16,000
18,000
20,000
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(IN
R m
n)
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VAP to keep margin elevated
SIL has consistently launched products catering to niche
applications, which has led to the rise in value-added
products (as per the company, products with an
operating margin of >17% are classified as VAP).
Value-added products posted sales CAGR of 13% over
FY12-18. Sales from value-added products, as percentage
of total sales, increased from 29.82% in FY12 to 35.95% in
FY18. The entire 100% of sales from cross-laminated films
(Silpaulin) and composite cylinders fall under the VAP
category.
Exhibit 18: VAP sales CAGR of 13% over FY12-18
Source: Company, Elara Securities Research
Exhibit 19: More than a third of sales come from VAP
Source: Company, Elara Securities Research
Exhibit 20: VAP sales CAGR of 19% over FY12-18 –
plastics piping systems segment
Source: Company, Elara Securities Research
Exhibit 21: Improving contribution from VAP – plastic
piping systems segment
Source: Company, Elara Securities Research
Plastic piping systems, a major VAP contributor
Sales of value-added products from the plastics piping
systems segment consistently increased over FY12-18. Its
contribution to the segment went up from 23% in FY12 of
the plastics piping systems sales to 32% by FY18. Although
SIL’s plastic piping segment posted a sales CAGR of 13%,
sales CAGR of value-added products in the segment
posted a CAGR of 19% over FY12-18. Around 50% of SIL’s
VAP sales come from this segment.
Sales realization of the plastics piping segment posted a
CAGR of 5%, from INR 87.3/kg to INR 114.0/kg, over FY12-
18, led by improving VAP contribution. We expect the
trend to continue over FY18-21 with improvement in
realization CAGR of 3%.
8,3
48
10
,05
0
11
,86
3
13
,40
1
10
,67
1
16
,41
0
17
,34
1
0
5,000
10,000
15,000
20,000
FY12 FY13 FY14 FY15 FY16 FY17 FY18
(IN
R m
n)
29.8
31.1
32.3
34.2
36.737.5
35.9
28
30
32
34
36
38
FY12 FY13 FY14 FY15 FY16 FY17 FY18
(%)
3,0
58
4,4
00
5,5
78
6,3
22
5,3
21
7,7
83
8,6
62
0
2,000
4,000
6,000
8,000
10,000
FY12 FY13 FY14 FY15 FY16 FY17 FY18
(IN
R m
n)
23.2
26.627.7
30.3
33.4
31.7 31.8
20
25
30
35
FY12 FY13 FY14 FY15 FY16 FY17 FY18
(%)
Structural compounding story
Contribution to increase from value-added products
Capacity expansion leading to an earnings CAGR of 15% over FY18-21E
Strong free cashflow model and optimization of shareholder value
Supreme Industries
12 Elara Securities (India) Private Limited
Exhibit 22: Launches in the past three years – plastics
piping systems
Category New product launches
Plastics piping SWR drainage system
Nu-drain underground drainage system
CPVC fire sprinkler
DWC HDPE sewerage and drainage
Aqua craft bath fittings
Inspection chambers and manholes
Source: Company, Elara Securities Research
Exhibit 23: VAP sales CAGR of 11% over FY12-17 –
furniture segment
Note: FY18 contribution not published by management
Source: Company, Elara Securities Research
Exhibit 24: More than half of furniture products are
VAP
Note: FY18 contribution not published by management
Source: Company, Elara Securities Research
VAP respite for moderately growing furniture space
Segments growing at pace of GDP, such as moulded
furniture, SIL has focused on delivering high quality
products and services to customers through its
nationwide network of ~11,000 retailers. Sales
contribution from value-added products in this segment
went up from 36.3% in FY12 to 52.1% in FY17 (the
company has not published FY18 numbers). It posted a
moulded furniture segment CAGR of just 5% over FY12-
18 while it had a VAP sales CAGR of 11% over FY12-17
(the company has not published FY18 numbers). Sales
realization of moulded furniture for SIL has moved up
from INR 142/kg in FY12 to INR 178/kg in FY18 (INR
195/kg in 1HFY19).
Exhibit 25: Launches in the past three years - Furniture
Category New product launches
Consumer products - furniture Blow moulded tables
Fusion series tables
Two-seater love seat sofa
Cambridge chair
Vegas centre table
Source: Company, Elara Securities Research
Packaging products: second-biggest contributor
The protective packaging VAP business (sub-segment
under packaging) posted a sales CAGR of 15% over FY12-
17, with VAP contribution increasing from 36.0% in FY12
to 44.2% in FY17. With improving VAP contribution, sales
realization for the packaging vertical improved from INR
183.8/kg in FY12 to INR 216.4/kg in FY18, at a sales CAGR
of 3%.
Exhibit 26: VAP sales CAGR of 15% over FY12-17–
protective packaging segment
Note: FY18 contribution not published by management
Source: Company, Elara Securities Research
Exhibit 27: Improving trend of VAP – protective
packaging segment
Note: FY18 contribution not published by management
Source: Company, Elara Securities Research
Within the packaging business, cross-laminated film (sold
under brand, Silpaulin) is a 100% value-added product.
The cross-laminated film business posted a sales CAGR of
6% over FY12-17 (the company has not published FY18
numbers).
95
2
1,0
52
1,2
55
1,3
11
1,0
43
1,6
32
600
800
1,000
1,200
1,400
1,600
1,800
FY12 FY13 FY14 FY15 FY16 FY17
(IN
R m
n)
36.338.2
48.6 47.6 48.3
52.1
20
25
30
35
40
45
50
55
FY12 FY13 FY14 FY15 FY16 FY17
(%)
Moulded Furniture - VAP
85
2
90
1
97
6
1,0
40
85
1
1,6
92
0
500
1,000
1,500
2,000
FY12 FY13 FY14 FY15 FY16 FY17
(IN
R m
n)
36.035.2
31.730.4
32.7
44.2
30
35
40
45
FY12 FY13 FY14 FY15 FY16 FY17
(%)
protective packaging - VAP
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Exhibit 28: Cross-laminated film packaging – 100%
VAP segment
Note: FY18 contribution not published by management
Source: Company, Elara Securities Research
Exhibit 29: Launches in the past three years –
Packaging Products
Category New product launches
Packaging Kids education toys
Yoga mats (approved vendor, Decathlon)
NBR sheets
Bonded foam for acoustic insulation
Source: Company, Elara Securities Research
Composite cylinders: 100% VAP segment
SIL has been trying to scale up its composite cylinders
business for the past few years. The company started
supplying composite cylinders to South Korea and
Bangladesh during FY18. However, as per management,
clients had reported few technical issues in the product. It
says all those issues have been resolved and clients have
to issue repeat orders. SIL has been negotiating with
Bangladesh to supply larger quantities of composite
cylinders in the upcoming year. The company has
received approval from TUV, PESO and KGS for its
cylinders. It has started trial lots with South Korea for its
20kg cylinder. Management expects good volume
demand from South Korea, given it is a coastal country
and rusting of steel cylinders is an issue.
SIL has met BIS standards, and BIS 16646 has been
published for type IV composite cylinders. This will allow
the company to market its cylinders to oil marketing
companies (OMC) in India. Apart from this, SIL has started
supplying cylinders, albeit in smaller quantities, to private
gas companies in Goa, Belgaum and Bengalaru. It
acquired a 10% business interest in HPC Research, a
startup company focused on R&D in composite cylinders
in the Czech Republic, to strengthen its R&D footprint in
pressure vessels in FY18.
We believe management has taken steps to raise its
presence in the composite cylinders segment. Entire
composite cylinder segment comes under value-added
product.
SIL profitability is susceptible to volatility in prices of key
raw materials, such as polyvinyl chloride (PVC),
polyethylene (PE), and polypropylene (PP). Prices of these
raw materials are linked to crude oil prices. SIL has strived
to reduce the linkage of its performance to crude oil prices
by increasing the proportion of high-margin specialty
products in its portfolio. Thus, with rising contribution of
value-added products in the plastics pipe systems and
composite cylinders segment, we expect margins to
improve by 100bps to 16% over 15% in 1HFY19.
Healthy capex plans over FY18-21
Consistent gross block addition
Exhibit 30: Consistent addition of gross block
Source: Company, Elara Securities Estimate
Exhibit 31: Sales growth outperforms gross block
addition
Source: Company, Elara Securities Estimate
SIL has consistently invested in building capacity since its
inception. Over the past 10 years, it posted a gross block
CAGR of 12% over FY08-18, from INR 8,279mn in FY08 to
INR 25,883mn in FY18. Overall top-line growth has
outpaced capex and posted a CAGR of 14% over the past
10 years.
3,4
04
3,6
57
3,9
41
4,5
07
3,3
37
4,6
58
2,000
2,500
3,000
3,500
4,000
4,500
5,000
FY12 FY13 FY14 FY15 FY16 FY17
(IN
R m
n)
0
10,000
20,000
30,000
40,000
FY08 FY13 FY18 FY19E FY20E FY21E
(IN
R m
n)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
FY08 FY13 FY18 FY19E FY20E FY21E
(IN
R m
n)
Supreme Industries
14 Elara Securities (India) Private Limited
Exhibit 32: Healthy fixed asset turnover
Source: Company, Elara Securities Estimate
As on FY18, the company’s manufacturing base across
India includes 25 plants in 11 states with total capacity of
568,000 tonnes with plastics piping capacity at 402,000
tonnes, packaging capacity of 65,000 tonnes, industrial
capacity at 69,000 tonnes, consumer furniture capacity at
29,000 and composite cylinders at 3,000 tonnes.
Total manufacturing units are expected to reach 28 by
end FY21 with a new plant in Telangana, according to
management. The company’s plastic pipes, protective
packaging & roto moulding products and furniture &
materials handling are expected to be produced from this
new plant.
We expect capacity to increase from 568,000 tonnes in
FY18 to 700,000 tonnes in FY21 with total capex of INR
11,000mn over FY19E-21E.
Govt initiatives to drive plastics piping systems sales
Plastics piping systems is core business segment of SIL,
contributing 55% and 50% to annual sales turnover and
EBITDA as on FY18. The company posted a sales CAGR of
9% over FY13-18, led by its plastics piping segment, which
posted a CAGR of 10% over the same period.
SIL manufactures plastic pipes using PVC, uPVC, CPVC,
and HDPE polymers. However, PVC and uPVC pipes
contribute to most of the company’s plastics piping
revenue. Demand for PVC pipes in India has grown at a
steady pace with total market size at USD 3.2bn by end-
FY16 as per Allied Market Research report. The PVC piping
market is expected to post a CAGR of 10.2% over FY16-23
and reach USD 6.6bn by end-FY23.
Polyvinyl chloride (PVC) is the third-largest selling
commodity in India. Its attributes of being chemically
resistant, durable, low cost, recyclable and easy-to-install
& use makes it a preferred material for application in
drainage, sewage, plumbing, agriculture, irrigation and
water supply in residential as well as industrial sectors.
In India, the need for proper infrastructure and installation
& transportation of water for end-users has become a
major driver for PVC pipes and fittings industry’s
expansion. In the past few years, the government has
been focused on rural water management and has
initiated several projects and investments in the irrigation
sector. The Central government has increased its
investment in the irrigation sector from INR 2,000bn
during FY07-11 to INR 3,300bn during FY11-16 in an
effort to bridge the gap in irrigation infrastructure to raise
agricultural output.
Under the PMAY scheme, India has set a target of 10mn
houses to be constructed in urban areas across the
country over CY15-22. As per Housing and Urban Affairs
(HUA) Ministry data, ~5.5mn houses were sanctioned in
the past three years of which 15% have already been
constructed. We expect the PMAY scheme to be positive
for companies such as Supreme, Astral Pipes (ASTRA IN,
CMP: INR 1155, Not Rated), Prince Pipes (Not Listed)
Ashirvad Pipes (Not Listed), Finolex Industries (FNXP IN,
CMP: INR 553, Not Rated) and Jain Irrigation (JI IN, CMP:
INR 69, Not Rated). Supreme Industries, being the market
leader in this segment, is expected to benefit the most.
Exhibit 33: Government initiatives to help the plastic
pipe industry
Source: Company, Elara Securities Research
Exhibit 34: Plastics piping systems: volume CAGR of
9% over FY18-21E
Source: Company, Elara Securities Estimate
2.4
3.0
3.5
3.2
3.8
3.2
3.63.8
2.4
3.4 3.5 3.5 3.6
4.0
2.0
2.5
3.0
3.5
4.0
4.5F
Y0
8
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
FY
19
E
FY
20
E
FY
21
E
(%)
150,000
200,000
250,000
300,000
350,000
FY16 FY17 FY18 FY19E FY20E FY21E
(to
nn
e)
PMAY Swachh Bharat Agriculture
Conversion from DI to PVC
Smart City Mission
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Exhibit 35: Plastic piping systems sales CAGR of 12%
over FY18-21E
Source: Company, Elara Securities Estimate
The Swachh Bharat Abhiyaan is another flagship program
of the government, under which the Centre intends to
construct individual household, cluster and community
toilets. It aims to reach 100% sanitation coverage by end-
FY19.
Exhibit 36: Current status of Swachh Bharat Mission
Source: Ministry of Drinking Water and Sanitation, 2018
The government’s Smart City Mission is another initiative
that is expected to drive the plastics piping segment.
Under this initiative, we expect the existing ductile iron
pipes to be replaced by PVC and CPVC pipes. The city’s
sewage system is going to be another channel driving
double wall corrugated (DWC) piping demand.
With these government initiatives and SIL’s strong pan-
India manufacturing base, we expect a plastics piping
systems volume CAGR of 9% and a plastics piping systems
sales CAGR of 12% over FY18-21E.
Industrial products to provide needed impetus
We believe industrials product segment will bolster
growth over the next few years. SIL’s new plant in Ghilot
in Rajasthan to manufacture industrial components has
commenced commercial production during
September’18.
SIL’s industrials product segment is divided into two sub-
segments: industrial components and materials handling
products.
Exhibit 37: Industrial products volume CAGR of 15%
over FY18-21E
Source: Company, Elara Securities Estimate
Exhibit 38: Industrial products sales CAGR of 28% in
FY18-21E
Source: Company, Elara Securities Estimate
Exhibit 39: Industrial components: applications
Source: Company, Elara Securities Research
Industrial components: key growth lever
Within industrial components, SIL caters to automotive,
consumer durables and other home appliances segments.
Some auto clients include Tata Motors, Honda India,
Maruti Suzuki and Piaggio. The company has been
supplying cockpit assembly for LCV and MCV models,
Ultra for Tata Motors. It also has been working on several
models for Maruti and Honda (including SUV model, WR-
V). SIL started supplying components for the new two–
wheeler, SR 150 and existing Vespa by Piaggio. SIL
currently supplies plastic components to auto OEM.
However, it intends to meet entire supply value chain,
right from designing to development for auto
manufacturers. SIL has entered into JV with Kumi Kasei, a
Japan entity, to set up a new entity, Kumi Supreme India
(JVC). Kumi is a major supplier to Honda for interior parts
10,000
15,000
20,000
25,000
30,000
35,000
40,000
FY16 FY17 FY18 FY19E FY20E FY21E
(IN
R m
n)
150,000
200,000
250,000
300,000
350,000
FY16 FY17 FY18 FY19E FY20E FY21E
(to
nn
e)
10,000
15,000
20,000
25,000
30,000
35,000
40,000
FY16 FY17 FY18 FY19E FY20E FY21E
(IN
R m
n)
90mn toilets built 58.77% increase in
HH with toilets 20mn toilets built
in 2018-19
559 ODF
districts
0.5mn ODF
villages
Automotive Air
Conditioners
Washing machines Home appliances
Supreme Industries
16 Elara Securities (India) Private Limited
of automotive applications globally. With this new JV, we
believe SIL’s technological competence will improve.
Exhibit 40: Industrial components volume CAGR of :
14% over FY16-18
Source: Company, Elara Securities Research
Within SIL’s consumer appliances segment, Bosch,
Samsung and Whirlpool are key clients. The company has
taken steps to rationalize and reorient machine capacity
at various locations to align with changes in product mix.
It also has added new machines equipped with latest
energy-efficient technology. With the required changes,
we believe SIL’s product mix in the industrials segment has
improved significantly, leading to volume growth of 16%
and realization growth of 18% during 1HFY19. Sales from
this segment grew at 38% in 1HFY19.
Material handling products, an annuity business
Apart from the automotive and consumer durables
business, SIL remains a major materials handling
equipment supplier, providing crates to automobiles,
FMCG, white goods, engineering and retail sectors. The
company also provides customized fabrication based on
consumer needs. SIL remains a key supplier of bottle crates
to two major software drink suppliers.
Exhibit 41: Materials handling products volume CAGR
of 13% over FY16-18
Source: Company, Elara Securities Research
We believe with growth coming from multiple sectors, SIL
has sufficiently reduced its risk of overdependence on a
particular sector.
Strong cashflow generating model
SIL remains one of the most efficient plastics
manufacturers in terms of working capital management.
Except for Finolex Industries, SIL’s working capital as a
percentage of sales remains the lowest.
Exhibit 42: SIL WC as a % of sales is the lowest among
peers
Note; FY18, Source: Company, Elara Securities Research
Exhibit 43: Steady working capital cycle at 40 days
Source: Company, Elara Securities Estimate
Efficient working capital management has allowed SIL to
consistently generate healthy cashflow from operations.
Hence, despite operating in a capital-intensive business,
the company has been able to maintain a healthy
dividend payout ratio of ~40% of PAT over the past
several years.
Exhibit 44: Superior dividend payout
Source: Company, Elara Securities Estimate
0
13
31
(12)
11
18
(20)
(10)
0
10
20
30
40
FY16 FY17 FY18
(%)
Volume growth Value growth
13
7
18
7 7
30
0
10
20
30
40
FY16 FY17 FY18
(%)
Volume growth Value growth
8.912.8
8.0
38.0
29.8
23.5
0
10
20
30
40
Su
pre
me
Ind
ust
rie
s
Ast
ral P
oly
Fin
ole
xIn
du
stri
es
Jain
Irri
ga
tio
n
Tim
eT
ech
no
pla
st
Nilk
am
al
(%)
0
20
40
60
80
FY16 FY17 FY18 FY19E FY20E FY21E
(Da
ys)
Inventory days Sundry debtors days
Sundry creditor days WC days
43.3
44.5
42.6
41.7 41.7
40.2
38
39
40
41
42
43
44
45
0
500
1,000
1,500
2,000
2,500
3,000
FY
16
FY
17
FY
18
FY
19
E
FY
20
E
FY
21
E
(%)
(IN
R m
n)
Dividend Dividend payout
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Exhibit 45: Healthy cashflow from operations
Source: Company, Elara Securities Estimate
1,870
5,8975,262
6,849 7,158
8,607
0
2,000
4,000
6,000
8,000
10,000
FY
16
FY
17
FY
18
FY
19
E
FY
20
E
FY
21
E
(IN
R m
n)
Supreme Industries
18 Elara Securities (India) Private Limited
Sustained growth to continue
SIL had posted a top-line CAGR 14% over FY08-18. This
healthy growth was led by ~9% volume CAGR while the
rest came from increase in price realization. In the medium
term (FY13-18), the company posted a sales CAGR of 8%,
driven by 6% volume growth.
In its three-year business plan, management expects
manufacturing plants to go up from 25 to 28, with a new
plant coming in Telangana by FY20. We expect capex of
INR 3,000-4,000mn pa with total capex of INR 11,000mn
over FY19E-21E. With both demand drivers and capacity
in place, we expect a volume CAGR of 9% over FY18-21E.
Exhibit 46: Volume CAGR of 9% over FY18-21E
Source: Company, Elara Securities Estimate
Exhibit 47: Capex of INR 11,000mn over FY19E-21E
Source: Company, Elara Securities Estimate
Exhibit 48: Sales CAGR of 14% over FY18-21E
Source: Company, Elara Securities Estimate
Exhibit 49: EBITDA CAGR of 15% over FY18-21E
Source: Company, Elara Securities Estimates
Exhibit 50: PAT CAGR of 15% over FY18-21E
Source: Company, Elara Securities Estimate
371,176
401,824
439,373
482,666
300,000
350,000
400,000
450,000
500,000
FY18 FY19E FY20E FY21E
(IN
R m
n)
2,855
3,950 4,009
3,045
2,000
2,500
3,000
3,500
4,000
4,500
FY18 FY19E FY20E FY21E
(IN
R m
n)
49,663
56,696
64,568
74,207
40,000
50,000
60,000
70,000
80,000
FY18 FY19E FY20E FY21E
(IN
R m
n)
7,871
8,674
10,073
11,873
6,000
8,000
10,000
12,000
14,000
FY18 FY19E FY20E FY21E
(IN
R m
n)
4,311
4,879
5,333
6,480
3,000
4,000
5,000
6,000
7,000
FY18 FY19E FY20E FY21E
(IN
R m
n)
Multiple cogs at work
Volume CAGR of 9%, sales CAGR of 14%, EBITDA CAGR of 15% & PAT CAGR of 15% in FY18-21E
Plastics piping systems and industrial products segments to do major lifting
Initiate with a Buy and a TP of INR 1,537, implying 29% upside
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Efficient capital allocation drives the compounding
SIL has been one of the most efficient firms in terms of
capital allocation. This is evident from its ex-cash ROCE.
Long-term (FY08-18) ROCE stands at 24% while in the
medium term (FY13-18), it was 25%. We expect this trend
to continue and estimate ex-cash RoCE to reach 26.6% in
FY21.
Exhibit 51: Efficient capital allocation model: ex-cash
ROCE
Source: Company, Elara Securities Research
Exhibit 52: Ex-cash ROCE to improve further by FY21
Source: Company, Elara Securities Estimate
Superior capital allocaiton has allowed the company to
expand its gross block at a CAGR of 12% over FY08-18 and
maintain a dividend distribution policy with a payout of
~40% of PAT. We expect a similar trend to continue over
FY18-21E.
Exhibit 53: Consistent capex over the past 10 years
Source: Company, Elara Securities Research
Exhibit 54: Healthy capex to continue
Source: Company, Elara Securities Estimate
SIL has consistently performed capex for the past 10 years.
The company spent ~INR 20,000mn on building capacity
over FY08-18. We estimate an additonal capex of INR
11,000mn over FY19E-21E.
Exhibit 55: Consistent dividend payout policy
Source: Company, Elara Securities Research
Exhibit 56: Healthy dividend payout to continue
Source: Company, Elara Securities Estimate
Over FY08-18, SIL distributed INR 9,652mn in dividend.
We expect this trend to continue and estimate cumulative
dividend distribution of INR 8,694mn over FY18-21E.
Despite health capex rate and dividend distribution policy,
the company’s high ROCE business model has led to a
book value CAGR of 21% over the past 10 years. We
expect this run to continue, and expect a book value
CAGR of19% over FY18-21E.
16
2526
23
28 28
25
26
21
2524
15
20
25
30
FY
08
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(%)
24
23
24
27
22
23
24
25
26
27
FY18 FY19E FY20E FY21E
(IN
R m
n)
1,429
517750
2,511
779
3,694
1,4681,665
2,244
2,121
2,855
0
1,000
2,000
3,000
4,000
FY
08
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(IN
R m
n)
2,855
3,950 4,009
3,045
2,500
3,000
3,500
4,000
4,500
FY18 FY19E FY20E FY21E
(IN
R m
n)
221 305457
546 572699
1,016
1,143
953
1,905
1,835
0
500
1,000
1,500
2,000
2,500F
Y0
8
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(IN
R m
n)
1,835
2,032
2,223
2,604
1,600
1,800
2,000
2,200
2,400
2,600
2,800
FY18 FY19E FY20E FY21E
(IN
R m
n)
Supreme Industries
20 Elara Securities (India) Private Limited
Exhibit 57: Book value CAGR of 21% over FY08-18
Source: Company, Elara Securities Research
Exhibit 58: Healthy net worth expansion
Source: Company, Elara Securities Estimate
Plastics piping, industrials to lead
We believe various government initiatives will lead to
healthy volume growth of the plastics piping system
segment. The plastics piping systems segment, a major
contributor to total sales, would drive a top-line CAGR of
14% over FY18-21E.
Exhibit 59: Industrial products and plastics piping
systems to grow faster than others
Source: Company, Elara Securities Estimate
Exhibit 60: Rising contribution from industrials
Source: Company, Elara Securities Estimate
Exhibit 61: Margin to remain stable over FY18-21E
Source: Company, Elara Securities Estimate
Balance sheet to remain lean
SIL has maintained a lean balance sheet since FY12. The
company’s debt-to-equity ratio has declined steadily, from
0.5x in FY12 to 0.1x in FY18. We estimate it to become a
net cash company despite capex of INR 11,000mn over
the next three years.
Exhibit 62: Continue with lean balance sheet
Source: Company, Elara Securities Estimate
2,705
3,041
4,141
5,477
6,967
8,790
10,391
12,115
13,157 16,957
18,949
0
5,000
10,000
15,000
20,000
FY
08
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
(IN
R m
n)
18,949
22,689
26,506
30,847
15,000
20,000
25,000
30,000
35,000
FY18 FY19E FY20E FY21E
(IN
R m
n)
0
10
20
30
40
FY18 FY19E FY20E FY21E
(%)
Plastics Piping Systems Packaging Products
Industrial Products Consumer products
16 19 20 22
0
20
40
60
80
100
FY18 FY19E FY20E FY21E
(%)
Plastics Piping Systems Packaging Products
Industrial Products Consumer products
15.8
15.3
15.6
16.0
15.2
15.4
15.6
15.8
16.0
16.2
FY18 FY19E FY20E FY21E
(%)
0.120.08
0.050.03
(0.3)
(0.2)
(0.1)
0.0
0.1
0.2
(6,000)
(4,000)
(2,000)
0
2,000
4,000
FY18 FY19E FY20E FY21E
(%)
(IN
R m
n)
Net Debt D/E
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Initiate with Buy and a TP of INR 1,537
We initiate coverage of Supreme Industries with a Buy
rating and a 12-month target price of INR 1,537, implying
29% upside from the current levels. Our TP is based on 30x
FY21E EPS of INR 51. Our one-year forward target
multiple of 30x is at par with the five-year P/E median of
30x and at a 12% discount to its three-year P/E median of
34x. The stock currently trades at 31x FY19E P/E, 28x
FY20E P/E and 23x FY21E P/E, presenting a good entry
opportunity.
Exhibit 63: Valuation overview
Year FY21E
EPS (INR) 51
One-year forward P/E median (three-year average) (x) 34
One-year forward P/E median (five-year average) (x) 30
Current market cap (INR mn) 151,334
No of shares (mn) 127
Target multiple (x) 30
TP (INR) 1,537
CMP (INR) 1,191
Upside (%) 29
Note: pricing as on 28 December 2018; Source: Elara Securities Estimate
Margin expansion of 100bp by FY21E over 1HFY19
Our growth estimates are driven by: 1) steady
contribution of VAP of 35%+, and 2) an improving
product mix to lift realization per unit by CAGR 5% over
FY18-21E.
Sales CAGR of 14%, EBITDA 15% and PAT of 15%
With growth and margin levers in place, we expect a
revenue CAGR of 14%, an EBITDA CAGR of 15% and a
PAT CAGR of 15% over FY18-21E.
Exhibit 64: Key assumptions
(%) Volume
CAGR (%) Sales
CAGR (%) Margin
improvement (bp)
FY18-21E 9 14 100
Note: Margin improvement is over 1HFY19 to FY21E
Source: Elara Securities Estimate
Investment risks
Slowdown in real estate or construction activities
Our sales CAGR assumption of 14% over FY18-21E is
based on plastics piping systems segment volume CAGR
of 9% and value CAGR of 12% over FY18-21E. Sales
growth of the plastics piping systems segment can get
dented if there is a slowdown in PMAY activities, non-
PMAY sales or a poor Monsoon.
Rising crude prices can dent margin
Sales revenue from the piping segment was at ~55% of
total sales as on FY18. Majority of pipe segment sales
comes from PVC and uPVC pipes in which the key raw
material is PVC resin. PVC resin prices fluctuate with
change in crude prices. Our channel checks show PVC
and uPVC pipe prices are revised twice a month. If there
were a sharp rise in crude prices, it would lift PVC resin
prices, denting EBITDA margin.
Supreme Industries
22 Elara Securities (India) Private Limited
Appendix
Exhibit 65: Manufacturing base
Location State Industrial products Consumer products Packaging products Plastic piping Composites
Derabassi Punjab
Durgapur West Bengal
Gadegaon Maharashtra
Ghiloth Rajasthan
Guwahati Assam
Halol - Unit I Gujarat
Halol - Unit II Gujarat
Halol - Unit III Gujarat
Halol – Unit IV Gujarat
Hosur - Unit I Tamil Nadu
Hosur - Unit II Tamil Nadu
Jalgaon – Unit I Maharashtra
Jalgaon – Unit II Maharashtra
Kanhe Maharashtra
Kanpur Maharashtra
Kharagpur West Bengal
Khopoli Maharashtra
Malanpur – Unit I Madhya Pradesh
Malanpur – Unit II Madhya Pradesh
Malanpur – Unit III Madhya Pradesh
Noida Uttar Pradesh
Puducherry Union Territory
Silvassa Union Territory
Sriperumbudur Tamil Nadu
Urse Maharashtra
Jadcherla* Telangana
Note: *under construction; Source: Company, Elara Securities Research
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Company Description
Supreme Industries is India's leading plastic processing company with seven business divisions. The company has
forayed into different types of plastic processing, such as injection moulding, rotational moulding (ROTO), extrusion,
compression moulding and blow moulding. It offers a wide range of products with multiple applications in moulded
furniture, cross laminated films (XF) & products, performance films, storage & material handling, industrial, protective
packaging & composite plastic products, plastics piping systems & petrochemicals.
The company also offers the most comprehensive range of plastic products in India. Its 25 plants are powered by
technology from world leaders, and complement extensive facilities for R&D and new product development. Supreme
is credited with pioneering several products in India, such as cross-laminated, multilayer films and Soil, Waste and Rain
(SWR) piping systems.
Exhibit 66: Key management personnel as on FY18
Employees Designation
BL Taparia Chairman
MP Taparia Managing Director
PC Somani Chief Financial Officer
Source: Company, Elara Securities Research
Supreme Industries
24 Elara Securities (India) Private Limited
Coverage History
Date Rating Target Price Closing Price
1
28-Dec-2018 Buy INR 1,537 INR 1,191
Guide to Research Rating
BUY Absolute Return >+20%
ACCUMULATE Absolute Return +5% to +20%
REDUCE Absolute Return -5% to +5%
SELL Absolute Return < -5%
1
800
900
1,000
1,100
1,200
1,300
1,400
1,500
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-1
8
Au
g-1
8
Se
p-1
8
Oct-
18
No
v-1
8
De
c-1
8
Not Covered Covered
Elara Securities (India) Private Limited
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Disclosures & Confidentiality for non U.S. Investors
The Note is based on our estimates and is being provided to you (herein referred to as the “Recipient”) only for information purposes. The sole purpose of this Note
is to provide preliminary information on the business activities of the company and the projected financial statements in order to assist the recipient in understanding
/ evaluating the Proposal. Nothing in this document should be construed as an advice to buy or sell or solicitation to buy or sell the securities of companies referred
to in this document. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment
in the securities of companies referred to in this document (including the merits and risks involved) and should consult its own advisors to determine the merits and
risks of such an investment. Nevertheless, Elara Securities (India) Private Limited or any of its affiliates is committed to provide independent and transparent
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its affiliates have not independently verified all the information given in this Note and expressly disclaim all liability for any errors and/or omissions, representations
or warranties, expressed or implied as contained in this Note. The user assumes the entire risk of any use made of this information. Elara Securities (India) Private
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agent in or for the securities mentioned in this document. They may perform or seek to perform investment banking or other services for or solicit investment banking
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person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use
would be contrary to law, regulation or which would subject Elara Securities (India) Private Limited or any of its affiliates to any registration or licensing requirements
within such jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and persons in whose possession this document comes,
should inform themselves about and observe, any such restrictions. Upon request, the Recipient will promptly return all material received from the company and/or
the Advisors without retaining any copies thereof. The Information given in this document is as of the date of this report and there can be no assurance that future
results or events will be consistent with this information. This Information is subject to change without any prior notice. Elara Securities (India) Private Limited or any
of its affiliates reserves the right to make modifications and alterations to this statement as may be required from time to time. However, Elara Securities (India) Private
Limited is under no obligation to update or keep the information current. Neither Elara Securities (India) Private Limited nor any of its affiliates, group companies,
directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including lost revenue or lost profits
that may arise from or in connection with the use of the information. This Note should not be deemed an indication of the state of affairs of the company nor shall
it constitute an indication that there has been no change in the business or state of affairs of the company since the date of publication of this Note. The disclosures
of interest statements incorporated in this document are provided solely to enhance the transparency and should not be treated as endorsement of the views
expressed in the report. Elara Securities (India) Private Limited generally prohibits its analysts, persons reporting to analysts and their family members from
maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. The analyst for this report certifies that all of the views
expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her
compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.
Any clarifications / queries on the proposal as well as any future communication regarding the proposal should be addressed to Elara Securities (India) Private
Limited.
Elara Securities (India) Private Limited was incorporated in July 2007 as a subsidiary of Elara Capital (India) Private Limited.
Elara Securities (India) Private Limited is a SEBI registered Stock Broker in the Capital Market and Futures & Options Segments of National Stock Exchange of India
Limited (NSE) and in the Capital Market Segment of BSE Limited (BSE).
Elara Securities (India) Private Limited’s business, amongst other things, is to undertake all associated activities relating to its broking business.
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last five years. However, during the routine course of inspection and based on observations, the exchanges have issued advise letters or levied minor penalties on
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business by any Stock Exchange / SEBI or any other authorities; nor has the certificate of registration been cancelled by SEBI at any point of time.
Elara Securities (India) Private Limited offers research services primarily to institutional investors and their employees, directors, fund managers, advisors who are
registered or proposed to be registered.
Details of Associates of Elara Securities (India) Private Limited are available on group company website www.elaracapital.com
Elara Securities (India) Private Limited is maintaining arms-length relationship with its associate entities.
Research Analyst or his/her relative(s) may have financial interest in the subject company. Elara Securities (India) Private Limited does not have any financial interest
in the subject company, whereas its associate entities may have financial interest. Research Analyst or his/her relative does not have actual/beneficial ownership of
1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report. Elara Securities (India)
Private Limited does not have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date
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subject company at the end of the month immediately preceding the date of publication of Research Report. Research Analyst or his/her relative or Elara Securities
(India) Private Limited or its associate entities does not have any other material conflict of interest at the time of publication of the Research Report.
Research Analyst or his/her relative(s) has not served as an officer, director or employee of the subject company.
Research analyst or Elara Securities (India) Private Limited have not received any compensation from the subject company in the past twelve months. Associate
entities of Elara Securities (India) Private Limited may have received compensation from the subject company in the past twelve months. Research analyst or Elara
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have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company or
third party in connection with the Research Report in the past twelve months.
Disclaimer for non U.S. Investors
The information contained in this note is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we
endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the
particular situation.
Elara Securities (India) Private Limited
26
Disclosures for U.S. Investors
The research analyst did not receive compensation from Supreme Industries Limited.
Elara Capital Inc.’s affiliate did not manage an offering for Supreme Industries Limited.
Elara Capital Inc.’s affiliate did not receive compensation from Supreme Industries Limited in the last 12 months.
Elara Capital Inc.’s affiliate does not expect to receive compensation from Supreme Industries Limited in the next 3 months.
Disclaimer for U.S. Investors
This material is based upon information that we consider to be reliable, but Elara Capital Inc. does not warrant its completeness, accuracy or adequacy and it
should not be relied upon as such.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or
strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice,
and are only correct as of the stated date of their issue. Prices, values or income from any securities or investments mentioned in this report may fall against the
interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please
note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a
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investment to the investor. The information contained in this report does not constitute advice on the tax consequences of making any particular investment
decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of
particular securities, financial instruments or strategies to you. Before acting on any recommendation in this material, you should consider whether it is suitable
for your particular circumstances and, if necessary, seek professional advice.
Certain statements in this report, including any financial projections, may constitute “forward-looking statements.” These “forward-looking statements” are not
guarantees of future performance and are based on numerous current assumptions that are subject to significant uncertainties and contingencies. Actual future
performance could differ materially from these “forward-looking statements” and financial information.
Elara Securities (India) Private Limited
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Shraddha Shrikhande India shraddha.shrikhande@elaracapital.com +91 22 6164 8567
Sushil Bhojwani India sushil.bhojwani@elaracapital.com +91 22 6164 8512
Sudhanshu Rajpal India sudhanshu.rajpal@elaracapital.com +91 22 6164 8508
Gangadhara Kini US, Australia gangadhara.kini@elaracapital.com +91 22 6164 8558
Quantitative, Alternatives, Sales Trading & Dealing
Sunil Jain Quantitative & Alternates sunil.jain@elaracapital.com +91 22 6164 8531
Manan Joshi India manan.joshi@elaracapital.com +91 22 6164 8555
Manoj Murarka India manoj.murarka@elaracapital.com +91 22 6164 8551
Nupur Barve India nupur.barve@elaracapital.com +91 22 6164 8532
Ravi Sundar Muthukrishnan Ph.D Head - Institutional Equity Research ravi.muthukrishnan@elaracapital.com +91 22 6164 8572
Research
Akhil Parekh Analyst Midcap akhil.parekh@elaracapital.com +91 22 6164 8519
Ankita Shah Analyst Infrastructure, Ports & Logistics ankita.shah@elaracapital.com +91 22 6164 8516
Biju Samuel Analyst Quantitative & Alternate Strategy biju.samuel@elaracapital.com +91 22 6164 8505
Gagan Dixit Analyst Oil & Gas, Aviation gagan.dixit@elaracapital.com +91 22 6164 8504
Garima Kapoor Economist garima.kapoor@elaracapital.com +91 22 6164 8527
Harshit Kapadia Analyst Capital Goods harshit.kapadia@elaracapital.com +91 22 6164 8542
Karan Taurani Analyst Media karan.taurani@elaracapital.com +91 22 6164 8513
Jay Kale, CFA Analyst Auto & Auto Ancillaries jay.kale@elaracapital.com +91 22 6164 8507
Param Desai Analyst Pharmaceuticals, Healthcare, Real Estate param.desai@elaracapital.com +91 22 6164 8528
Pankaj Chhaochharia Analyst Strategy, Consumer Electronics pankaj.chhaochharia@elaracapital.com +91 22 6164 8503
Pradeep Kumar Kesavan, CFA Analyst Strategy pradeep.kesavan@elaracapital.com +91 22 6164 8541
Pratik Tholiya Analyst Agrochemicals, Travel & Hospitality pratik.tholiya@elaracapital.com +91 22 6164 8518
Rakesh Kumar Analyst Banking & Financials rakesh.kumar@elaracapital.com +91 22 6164 8559
Ravi Menon Analyst IT Services, Internet, Telecom ravi.menon@elaracapital.com +91 22 6164 8502
Ravi Sodah Analyst Cement, Building Materials ravi.sodah@elaracapital.com +91 22 6164 8517
Ritika Dua Analyst Diversified Financials ritika.dua@elaracapital.com +91 22 6164 8526
Sagarika Mukherjee Analyst FMCG, Dairy sagarika.mukherjee@elaracapital.com +91 22 6164 8594
Aarti Rao Associate Pharmaceuticals, Healthcare, Real Estate aarti.rao@elaracapital.com +91 22 6164 8535
Ashish Agrawal Associate IT Services, Internet, Telecom ashish.agrawal@elaracapital.com +91 22 6164 8573
Chintan Shah Associate Banking & Financials chintan.shah@elaracapital.com +91 22 6164 8521
Harsh Jhanwar Associate Cement, Building Materials harsh.jhanwar@elaracapital.com +91 22 6164 8546
Praneet Nikumbh Associate Diversified Financials praneet.nikumbh@elaracapital.com +91 22 6164 8506
Priyanka Trivedi Associate Agrochemicals, Travel & Hospitality priyanka.trivedi@elaracapital.com +91 22 6164 8588
Rachael Alva Associate Oil & Gas, Aviation rachael.alva@elaracapital.com +91 22 6164 8525
Shubham Maheshwari Associate FMCG, Dairy shubham.maheshwari@elaracapital.com +91 22 6164 8562
Vijay Gyanchandani Associate Auto & Auto Ancillaries vijay.gyanchandani@elaracapital.com +91 22 6164 8511
Vinayak Patil Database vinayak.patil@elaracapital.com +91 22 6164 8510
Priyanka Sheth Editor priyanka.sheth@elaracapital.com +91 22 6164 8568
Gurunath Parab Production gurunath.parab@elaracapital.com +91 22 6164 8515
Jinesh Bhansali Production jinesh.bhansali@elaracapital.com +91 22 6164 8537
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