The Hindu Business Line : Supreme Petro at 52-week high

THE counter of polystyrene maker Supreme Petro on Wednesday recorded its 52-week high to close at Rs 36.80, with a gain of about 17 per cent and traded quantity of 39 lakh shares on major bourses.

According to analysts and brokers, the improving fundamentals and aggressive expansion plans have brought the counter into limelight.

According to Mr Milan Bavishi of Anagram Stockbroking, the company has shown encouraging results on the back of improvement in realisations and capacity expansion. For the third quarter ended March 2005, revenues grew 12.4 per cent and net profit jumped 61.3 per cent.

Exports realisation and price of the main raw material - styrene monomer - worked in favour of the company. It is also expanding its capacity to 3 lakh tonnes from 2.21 lakh tonne in stages. It has also planned construction of a minor port and an EPS (Expanded Polystryrene) plant.

A fund manager said the commodity player has been riding the upswing in the polystyrene market. Global demand for the product and its variants, which have several applications, is continuing to rule steady in the near future. The company has around 60 per cent domestic market share.

The funding for its capacity scale-up and logistics infrastructure plans, largely equity-based, have also been lined up, according to sources close to the management. "The strategy seems to be to keep the growth graph intact for the company without much pressure on its resources," said an industry analyst.

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