Tuesday, 4 September 2012

Supreme Industries Vs Astral Poly: Quick Look

Here is a quick look at Supreme vs Astral:



Astral
Supreme
CMP
286
280
Face Value of Share
5
2
Sales
609.31
2962.2
Net Profit
39.46
240.52
Op Margin
14.15%
15.85%
Net Margin
6.83%
8.08%
RoCE
28.83%
45.6%
RoNW
21.55%
37.5%
Debt-Equity
0.34
0.4
Inventory Turnover
4.96
9.44
Asset Turnover
2.86
2.39
Material Cost
75.32
65.82
Dividend Payout Ratio
7.39
36.82
PE
15.17
14.9
P/B
3.49
5.58
Div Yield
0.4%
2.13%
Last 5 yr Rev Growth
42%
22%
Last 5 yr Profit Growth
23.51%
47.29%
  


The numbers are probably self-explanatory! Interestingly, Supreme has consistently improved its RoCE over the last 10 years. It used to be around 10% in 2002-03 and has moved to nearly 45% currently. It's CPVC business has grown 60% this year.

What I am most interested in is however, the composites business, which I think may be a big differentiator. This is their 5th and newest line of business. The company has received ISO approval for making fibre glass gas cylinders and is expected to start their trial run from Jan'13.




Disclaimer: I am invested in both Supreme and Astral and they are in top 5 holdings in my portfolio.

3 comments:

  1. Nice Comparison Abhishek, I am holding Astral and after seeing this comparison I am tempted to buy Supreme Ind. Thanks

    ReplyDelete
  2. Hi abhishek
    Saw your analysis on your blog and at valuepickr
    I wanted to allocate certain percentage to supreme industries and astral...
    Can you please guide me to is it the right time to buy astral and supreme.

    ReplyDelete
    Replies
    1. I think you can buy both at CMP. Don't buy in one go, but buy in smaller chunks over a period of time to average out any fluctuations.

      Delete