Supreme Industries stock has cleared a 8-week, 10% deep Flat Base this week. Currently, the stock is trading around just 5% away from its ideal buy price of INR 2133. The stock is worth watching at the current price level.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 8.73% away from the 10-week moving average.
In the last twelve months, Supreme Industries has rallied nearly 133.4% as compared to 61.1% for the Nifty500. It has a Relative Strength Rating of 74. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Supreme Industries can maintain this outperformance, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Supreme Industries has an Accumulation/Distribution Rating of 'A-'. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Supreme Industries has an excellent EPS Rank of 96, which indicates consistency in earnings. The earnings and sales for the stock have grown by 16% and 5%, respectively over the past three years. Its 3-years earnings stability is 20, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 11% and 8%, respectively. The 5-years earnings stability is 17. The return on equity for the last reported year is 36%.
The current price of Supreme Industries is -4% off from its 52-week high price and 157% above its 52-week low price. The stock belongs to the industry group of Chemicals-Plastics, which is exhibiting excellent strength in the current market environment. The current industry group rank is 32.
The stock appears on our idea lists: Trend Template - 5 Months.
Supreme Industries is engaged in the manufacturing of plastics products. Its segments include plastics piping, industrial packing consumer, and others. The company is a leader in its segment as it handles over 3,20,000 tons of polymer annually. It’s market share exceeds 50% in India and exports to over 70 countries.
It’s products include Molded plastic furniture, Tarpaulin (Traps) and Silpaulin, Bathroom Fittings, Plastic Piping System, Material Handling Products, and Protective Packaging Division.