Key highlights of AGM by Capital Mkt
Despite challenges and severe volatility, Supreme Industries recorded a volume growth stood at 10% to 275463 MT and value growth stood at 7% at Rs 3918 crore for full year ended June'15. Diverse revenue model with large product portfolio across 5 business verticals namely, Plastic piping, consumer products, packaging products, industrial products and composite products, also helped in sailing through the tough times.The company has total installed capacity of around 4.5 lakh MT with 2 green field capacities coming up by Oct'15, which will lead to a total of 5 lakh MT of installed capacity.
Domestic piping market is expected to be around Rs 22500 crore and about 70% is organized market. The organized share is growing faster and tapping more market share from unorganized players. The company has a 14% market share in the organized domestic plastic piping market in India.Consumer products business market is expected to be around Rs 2900 crore with Supreme's share of around 9.8%. The company is a one stop solution of entire range of furniture's made from polymers.The company has a 15% market share in industrial products segment which is about Rs 1600 crore market in India.
Poly vinyl chloride resin, polyethylene, and polypropylene are the major raw materials for the company, which are crude derivatives. These raw materials are volatile and thus the margins of the company fluctuate every quarter due to inventory positions. As per the management, sustainable margin on a 1ong term basis is around 14% for the company. In Supreme Petro, OPM of around 7% is a sustainable margin for the company going forward.Management expects the volatility of raw material prices to come down from Dec'15 quarter onwards, as in this volatile environment, neither the buyer nor the seller gets benefit. Going forward management expects things should remain range bound for some time, which will be good for the whole industry.The company is also the largest supplier to the soft drink industry.
Sale of value added products stood at 34.20% Vs 32.30% on YoY basis.Of the total saleable area of 2.8 lakh sq. feet of Andheri Commercial complex project, about 2.1 lakh sq. feet area is already sold and the balance area of about 0.7 lakh sq. feet is expected to be sold in next 12 months at price of around Rs 125 crore.The company also has proposed to change the financial year to March and thus next year will be a period of 9 months for the company ended March 2016.Overall, company expects to grow in double digit in volume terms for 9 months ended Mar'16, however it's difficult to gauge a picture on value wise. Long term target in next 4-5 years is to reach a turnover of around Rs 8500 crore by say 2020.

Looks like an excellent company.
Generate 3crs cash from operations, pay no tax,
Acquire businesses worth 36crs, and at the end of year become debt free co after infusing cash from reserves & surpluse.

sir i use falcon software

Duke Offshore

CMP: 48.85
Market Cap: 24.08Cr
Book Value: 27.18
PE: 6.30
ROCE: 40.82%
ROCE 3yr Avg. : 43.6%
Profit Growth 3 Years: 47.6%
Profit Growth Last Year : 49.32%
D/E : 0.09
Contingent Liabilities: 0.26 Cr
Promoter Holding: 70.6%
ROE 3 Years: 34.86%

DUKE OFFSHORE LIMITED is headquartered in Mumbai and is managed by a group of oil field and marine professionals.
Specialising in hook up and commissioning of offshore oil field platforms, their maintenance, modification and inspection services.

The Diving Division provides a dedicated underwater platform inspection, maintenance and repair (IMR) program for oil companies. In addition diving services are provided for drill rig support, SBM and SPM installation, operations and maintenance.

The Offshore vessel and Marine Management Division provides offshore support vessels like supply vessels, crew boats and hook up/ accommodation barges globally.

The Special Force Protection Division (SFPD) has been created to provide offshore patrol vessels to the oil fields and other offshore installations for security and protection.
Starting FY13 Company has increased its focus on the security and protection division. Company has purchased FIC (fast interceptor crafts) for this purpose. The company has also started to focus on defence services and has received contract from ministry of defence for maintenance of 4 vessels. With the Government’s increasing focus on building naval capabilities and management’s liaising capabilities I feel that the company is in a sweet spot to bag more such contracts. The management constitutes of people who have been part of MARCOS (special division of Indian Navy) and have worked closely with US Navy fleets.
Prior to FY 13 company focused mainly on offshore oil field maintenance and drilling support services and faced a threat due to oil price fluctuations as mentioned in ARs of FY11 and FY 12. FY 13 onwards this threat hasn’t been highlighted.
The numbers have also been really good so far. The company is also paying tax at healthy rate and has started paying out dividend. The Management is focused on expansion by purchasing boats and is confident about the growth.
The earnings might be lumpy.
Would like fellow members to pitch in with their views.

Disclosure: Invested & Biased.