Shares of Supreme Industries Ltd. gained as much as 10 percent on Friday on news that shares of the company will be included in the MSCI Global Standard Index from September 1, 2023.

Share Market Live

NSE

As part of its August review, MSCI announced that Supreme Industries and seven other Indian companies will be part of the MSCI Global Standard Index from September 1, 2023.

According to Nuvama Alternative & Qualitative Research, Supreme Industries is likely to receive inflows of $171 million as part of the MSCI adjustment.

Shares of Supreme Industries have gained in eight out of the last 10 trading sessions. The stock is up over 30 percent in the last one month and has extended its year-to-date advance to over 70 percent.

Supreme Industries is the largest plastics processor in the country, handling volumes of over 5 lakh metric tonnes of polymers annually.

The stock has been a phenomenal wealth creator for shareholders. Since 2002, the stock has given negative annual returns only thrice in 2008, 2018 and 2019.

"The overall volume growth is the key. If that remains, margins will pick up again because if crude comes down and PVC prices remains lower, I think obviously Supreme Industries is going to benefit. Some kind of decline is possible and then we need to see the possibly the next level of upside," Amit Gupta of ICICI Securities PMS told CNBC-TV18 on July 26.

Shares of Supreme Industries are trading 8.5 percent higher at Rs 4,179.50.

First Published:Aug 11, 2023 10:00 AM IST