This composite LPG cylinders supplier received a letter of acceptance of Rs 54 crore from Bharat Petroleum Corporation

Supreme Industries Ltd has received a Letter of Acceptance (LOA) from Bharat Petroleum Corporation Ltd (BPCL) for the supply of 200,000 units of 10.0 Kg Composite LPG Cylinders. This domestic order is estimated to be valued at approximately Rs 54 crore. The contract is valid for a period of six months from the LOA date, with a possibility of extension or repetition for an additional six months at BPCL's discretion. The entire supply is expected to be completed within six months from the date of the LOA.

Supreme Industries Limited stands as India's foremost plastics product manufacturer, offering a comprehensive array of plastic solutions across various categories. These include Plastic Piping Systems, Cross Laminated Films & Products, Protective Packaging Products, Industrial Moulded Components, Moulded Furniture, Storage & Material Handling Products, Performance Packaging Films, and Composite LPG Cylinders. The company boasts an extensive distribution network throughout India, comprising over 6,000 distributors, 32 depots, and 20 branch offices, with its consumer products also readily available in 308 showrooms nationwide.

The company has a market cap of over Rs 50,000 crore and has been maintaining a healthy dividend payout of 40 per cent. The shares of the company have a PE of 58x, an ROE of 17 per cent and an ROCE of 22 per cent. The stock is up over 40 per cent from its 52-week low of Rs 3,020 per share.

Disclaimer: The article is for informational purposes only and not investment advice.