Supreme Infrastructure India – Aggressive Bidder Of Projects

Invest At Around Rs.250

Supreme  Industries constructs buildings of quality
Supreme Industries constructs buildings of quality
Invest At Around Rs.250
Invest At Around Rs.250 | Source

Supreme Infrastructure - Share Price Movement

 
 
 
Weekly H/L
309.6
288
Monthly H/L
309.6
251
52 Weeks H/L
309.6
152.5
 
( 13 Apr 12 )
( 15 Dec 11 )
Delivery / Var+ELM %
82.02
13.11
Supreme Infrastructure - Share Price Movement

Supreme Infrastructure - Latest Financial Results

(in Cr.)
Dec-11
Sep-11
FY10-11
Revenue
410.58
259.11
918.69
Net Profit
25.02
14.96
74.81
EPS
14.94
8.94
47.53
Cash EPS
20.13
12.33
58.84
OPM %
16.86
18.4
17.48
NPM %
6.09
5.77
8.14
Supreme Infrastructure - Latest Financial Results

Backward Integration Advantage


Good Results

Supreme Infrastructure India has come out with good results for the quarter ended 31.12.11 as compared to the previous quarter. Revenue has increased from Rs.259 crore to Rs.410 crore. Revenue for the whole year 2010-11 was at Rs.918 crore. Net profit nearly doubled to Rs.25 crore. Net profit for the year 2010-11 was at Rs.74 crore. Operating profit margin declined from 18.4% while net profit margin increased from 5.77% to 6.09%. The shares of Supreme Infrastructure are traded at Rs.296 in Indian stock markets (BSE 16.04.12). The shares of Supreme Infrastructure are available in both BSE and NSE. The face value of the company’s shares is Rs.10. The company is engaged in construction and engineering sector.

Backward Integration Advantage

Supreme Infrastructure is noted for its efficient execution of the projects on hand, improving order book, efficient track record and backward integration. The company has produced consistency in the pace of execution of the captive road projects and building projects. Road projects form about one third of the order book and the remaining two thirds are related to buildings. In terms of return on equity, margins and working capital cycle, Supreme Infrastructure has performed above the industry average. Supreme Infrastructure has full backward integration to its credit with regard to the roads segment. It manufactures all the key raw materials like RMC and asphalt. It also possesses in-house crushing and quarrying capacities. This has improved its margins. Sometime back, Supreme Infrastructure entered into the BOT (Build, Operate and Transfer) road projects. It has half a dozen BOT projects in hand. Supreme Infrastructure also has the option of selling equity for these projects at the special purpose vehicle (SPV) level to global investors.

Planning To Enter Exciting Areas

Supreme Infrastructure invested a 51% stake in an Aurangabad-based company Rudranee Infra which specialises in power distribution projects and water pipelines. This will improve project execution capacity of Supreme Infrastructure. The company is also engaged in an industrial construction project for a steel plant in Jalna and a hospital construction project in Mumbai. Supreme Infrastructure is also planning to enter into exciting areas like power plants, ports and tunnelling.

Order Book Is Healthy

Supreme Infrastructure secured 3 work orders worth Rs.240 crore for constructing high rise towers in Navi Mumbai (Rs.137 crore), for constructing of houses for DGMAP in Kolkata (Rs.72 crore) and a steel plant (Rs.30 crore). The outstanding order book has crossed Rs.3000 crore. Last year the company’s board approved issue of NCD redeemable preference shares to raise long term funds. From a sub-contractor, Supreme Infrastructure is changing its revenue model and spreading its wings. It has opened a regional office in Kolkata to capture lucrative markets.

Invest At Around Rs.250

Investors confuse Supreme Industries with Supreme Infrastructure. Both are different companies and their managements are different. Supreme Industries belongs to the Taparia group. Supreme Infrastructure has a subsidiary Supreme Housing & Hospitality Ltd. The highest and the lowest price recorded by the shares of Supreme Infrastructure in the last one year are Rs.309 and Rs.152 respectively. Investors can invest in the shares of Supreme Infrastructure at around Rs.250 for medium and long term holding for decent returns.

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