Supreme Industries, Finolex Industries hit record high

Post Budget, Finolex Ind and Supreme Ind outperformed the market by surging 25% and 19%, respectively against 8% rise in Sensex.

Shares of plastic product manufacturers like Supreme Industries (Rs 795) and Finolex Industries (Rs 384) have hit their respective record highs on the BSE in intra-day today.

Post Budget, Finolex Industries and Supreme Industries have outperforming the market by surging 25% and 19%, respectively as compared to 8% rise in the S&P BSE Sensex.

Government’s focus on increasing irrigation in non rain-fed areas through ‘Pradhan Mantri Krishi Sinchai Yojana’ (allocation of Rs 500 billion) is expected to increase demand for PVC pipes and keep the industry growth strong over the next 5 years.

Measures like unified agricultural market, Rs 9 trillion target for farm loans and investment in rural infrastructure to benefit the company, while ‘Housing for All‘ by 2022 to provide 20 million houses in urban areas and 40 million houses in rural areas, in turn generate fresh demand for pipes, Finolex Industries said in a investor presentation.

Meanwhile, for the first nine months (April-December) of current financial year 2015-16, Finolex Industries had reported eight-fold jump in net profit at Rs 155 crore on back of strong operational performance.  Supreme Industries too, reported 155% year-on-year jump in its consolidated net profit at Rs 107 crore for the first half ended December 2015.

Lower raw material prices have boosted consumption of the plastic in the country by 14% volume between April’15 and December’15, Supreme Industries said while announcing the results.