Large cap stock jumps 4% after receiving LoA worth ₹ 55 Cr from Indian Oil Corporation

Supreme Industries Ltd, a leading plastic manufacturer, experienced a 4 percent increase in its shares following the news of receiving a letter of acceptance from Indian Oil Corporation Ltd, valued at Rs 55 crore.

The company’s market capitalization stands at Rs 73,675.58 crore, with shares trading at Rs 5,800.00 per share, representing a 0.56 percent increase from the previous closing price.

The letter of acceptance outlined a supply agreement for approximately 2,31,035 10.0 Kg composite cylinders, with an estimated total value of Rs.55 crores. The contract is set to be valid for 12 months, with the possibility of extension at the discretion of Indian Oil Corporation Ltd.

In terms of financial performance, Supreme Industries Ltd saw a 15 percent increase in revenue from Rs 2,598 crore in Q4FY23 to Rs 3,008 crore in Q4FY24. However, the net profit decreased by 1 percent from Rs 359 crore to Rs 355 crore during the same period.

Analyzing the company’s ratios, the return on equity and return on capital employed showed improvement from the previous fiscal year. The net profit margin for FY23-24 was reported at 9.50 percent.

Supreme Industries Limited operates in the plastics manufacturing sector, with a focus on plastic pipe goods, industrial products, packaging products, and consumer products. The company’s product range includes Plastic Piping Systems, Consumer goods, Industrial Products, and Packaging Products.

DailyBubble’s perspective on this development is that the letter of acceptance from Indian Oil Corporation Ltd is a positive sign for Supreme Industries Ltd, indicating potential growth opportunities in the future. Despite the slight dip in net profit, the company’s overall financial performance remains strong, reflecting its resilience in the market. Investors should continue to monitor the company’s performance and strategic initiatives in the coming months.