Supreme Industries Ltd: The Plastic Pipeline Powerhouse Quietly Compounding into a ₹44,000 Cr Giant

NSE: SUPREMEIND | BSE: 509930 | Sector: Capital Goods | CMP: ₹3,479.70 | Market Cap: ₹44,201.54 Cr

Supreme Industries Ltd is one of those rare Indian manufacturing franchises that does not show up on glossy growth-screeners, does not feature in fintech Twitter threads, and rarely makes it onto the table-pounding buy list of momentum chasers. Yet, for the patient capital allocator willing to look past quarterly noise, it represents a textbook example of compounding: a 1969-vintage plastics processor that has scaled to a market capitalisation of ₹44,201.54 Cr while maintaining a return on equity of 17.0%, a net profit margin of 12.0%, and an operating margin of 16.0%. At the current market price of ₹3,479.70, the stock trades at a price-to-earnings multiple of 48.5x trailing earnings and a price-to-book of 8.0x, reflecting the market's willingness to pay a premium for a category leader in India's plastic piping and building products space. With a 52-week range spanning ₹2,500.00 to ₹4,500.00, the stock has consolidated around the ₹3,400–₹3,500 zone after a sharp derating from its 52-week highs, creating a re-entry opportunity that long-term investors should examine carefully.

This article dissects Supreme Industries' business, financial trajectory, competitive positioning, valuation, and the key risks that the next 24 months may bring. We have used BSE-verified market data, supplemented with publicly available information from Screener.in and the company's investor disclosures, to construct a framework that helps long-term investors make an informed decision.

Section 1: Business Overview — A Vertically Integrated Plastics Compounder

Supreme Industries Ltd was incorporated in 1942 and promoted by the late Shri M.P. Taparia and family. The Taparia family continues to control the company, providing rare continuity of stewardship in a sector where promoter churn is the norm. Today, the company is one of India's largest processors of plastics, manufacturing a comprehensive portfolio of plastic piping systems, plastic sheets, protective packaging products, industrial products, and consumer products. Headquartered in Mumbai, the company operates over 30 manufacturing facilities spread across the length and breadth of India, with a particularly dense footprint in western, southern, and northern India.

The company's product mix can be broadly classified into five segments:

1. Plastic Piping Systems — This is the flagship business and the largest contributor to revenue. The portfolio includes PVC pipes and fittings, CPVC pipes, HDPE pipes, PPR pipes, and a wide array of specialised fittings for plumbing, irrigation, sewage, and industrial applications. The piping segment accounts for roughly 60–65% of consolidated revenue and has been the principal growth driver.
2. Plastic Sheets — Manufactured under the brand "Olefine" and other labels, this segment includes polypropylene (PP) sheets, high-density polyethylene (HDPE) sheets, and polycarbonate (PC) sheets used in packaging, signage, automotive, and industrial fabrication.
3. Packaging Products — This includes protective packaging, expanded polystyrene (EPS) products, and cross-linked foam products serving automotive, white goods, and e-commerce customers.
4. Industrial Products — A diversified bucket that includes material handling products, moulded furniture, and other custom polymer products.
5. Consumer Products — Branded retail products including water storage tanks (Supreme), bath fittings, kitchen sinks, and household items, distributed through a wide retail network.

The company follows a hub-and-spoke distribution model combined with a sprawling dealer and retailer network of more than 3,500+ outlets across India. This distribution moat is, in our view, the most under-appreciated asset on Supreme Industries' balance sheet. Building such a network in India's vast and fragmented retail landscape takes decades, and new entrants face enormous working capital and relationship costs to replicate it. The B L Taparia leadership team has consistently reinvested cash flows into expanding capacity rather than chasing inorganic growth, which has helped the company maintain high incremental return on capital.

From a business model perspective, Supreme Industries operates as a vertically integrated polymer processor. While it does not manufacture the base polymer (PVC resin, HDPE resin, etc.), it converts resin into finished products in-house, with significant in-house compounding, extrusion, moulding, and fabrication capabilities. The company also runs an extensive R&D centre that has helped it develop application-specific grades, weather-resistant formulations, and pressure-rated piping products that command premium pricing in the B2B and institutional segments.

Key marquee end-use segments for Supreme's products include agriculture (irrigation), real estate and housing (plumbing, drainage), infrastructure (sewerage, water supply schemes), industrial (chemical processing, mining, power), and the burgeoning data centre cooling and urban gas distribution utilities. The diversification of end-uses is an important risk-mitigant: weakness in any single end-market does not materially impair the overall portfolio.

From an export perspective, Supreme Industries has a modest but growing international footprint, with products shipped to over 30 countries. Exports typically account for less than 5% of total revenue, meaning the company is essentially a play on domestic Indian consumption and capex cycles.

The company's financial year ends on March 31, and the latest reporting period would be FY26 Q2 (July–September 2025) and beyond, with FY25 (April 2024–March 2025) being the most recent fully audited year. The 8-quarter table in Section 2 captures the trajectory of revenue, margins, and profit growth that forms the basis of our investment thesis.

Section 2: Latest Quarter Deep Dive — Traction Has Held Despite a Tepid Real Estate Cycle

The single most important question for any piping and building products franchise in India is whether the company can grow revenue and protect margins in an environment where the real estate cycle has been uneven, government capex has shifted gears, and PVC resin prices have been volatile. The 8-quarter snapshot below, constructed from BSE filings and Screener.in data, captures the answer to that question with considerable clarity.

Several observations jump out from this table:

Revenue trajectory is steady, not spectacular. Quarterly revenue has compounded from roughly ₹1,726 Cr in Q3 FY23 to ₹2,195 Cr in Q2 FY25, a CAGR of approximately 12.8%. There has been no quarter of negative growth in this window, which speaks to the resilience of the underlying demand for piping products across agriculture, real estate, and infrastructure.

Operating margin compression was modest and is reversing. OPM peaked at 17.5% in Q4 FY23, slipped to a low of 14.5% in Q1 FY24, and has since recovered to 16.0% by Q2 FY25. The compression was largely driven by PVC resin price volatility — PVC prices moved from roughly ₹85/kg in early 2023 to a peak of around ₹110/kg mid-2023 before easing back to ₹90–95/kg by late 2024. Supreme's ability to pass through resin costs with a one-quarter lag is well-documented, and the recent recovery in OPM suggests the worst of the input cost cycle is behind the company.

Net profit growth is outpacing revenue growth. Net profit has moved from ₹227 Cr in Q3 FY23 to ₹263 Cr in Q2 FY25, a CAGR of roughly 7.6% (lower than revenue due to base effects of FY23's exceptional margin quarter). On a sequential basis, net profit has been stable in the ₹230–₹300 Cr band, with EPS in the ₹18–₹23 range, confirming the consistency of the earnings stream.

Q2 FY25 was a quietly strong quarter. With revenue of ₹2,195 Cr (+11.2% YoY), operating profit of ₹352 Cr (OPM of 16.0%), and net profit of ₹263 Cr (NPM of 12.0%), Q2 FY25 was the third-best quarter in the eight-quarter window. Importantly, the company grew volumes and improved product mix in the quarter, even as the broader real estate sector was dealing with elevated inventory and slowdowns in the premium housing segment.

Capacity additions are flowing through. Management has been gradually commissioning capacity in newer plants in Gujarat, Telangana, Tamil Nadu, and Assam during FY24 and FY25. These plants are now contributing to volumes, and we expect the full-year run-rate of the new capacities to be visible in FY26. Each new plant typically adds ₹300–₹500 Cr of annualised revenue at full utilisation.

Working capital has been managed prudently. Inventory days have remained in the 45–55 day range, and receivable days have hovered around 40–50 days. There has been no aggressive channel stuffing or balance-sheet stretch to inflate short-term revenue growth, which we view as a positive quality signal.

Section 3: Financial Performance — Five-Year Overview, the Compounding Engine at Work

A five-year lens is essential when evaluating a company like Supreme Industries. Headline quarterly numbers can be noisy due to commodity cycles and timing differences, but a multi-year view smooths those out and reveals the structural trajectory. Below is a 5-year financial snapshot, sourced from Screener.in, capturing the financial year (FY) ended March data.

Note: FY25E figures are based on extrapolation of H1 FY25 actuals and analyst consensus; FY21–FY24 are reported numbers.

The five-year picture reveals several powerful truths:

Revenue has compounded at a healthy mid-teens pace. From ₹6,341 Cr in FY21 to a projected ₹8,950 Cr in FY25E, revenue has grown at a CAGR of approximately 9.0%. The deceleration from FY22–FY23 to FY24 reflects the broader slowdown in real estate and infrastructure capex, as well as the impact of resin price normalisation that reduced the absolute rupee value of sales. Volume growth has actually been healthier than the headline numbers suggest.

Operating margins have been remarkably stable. OPM has stayed in a tight band of 15.7%–17.2% across five years, with an average of approximately 16.5%. This is a defining characteristic of a high-quality industrial franchise — the ability to hold margins through input cost cycles. The 16% long-term average is consistent with management's stated guidance of 15–17% OPM.

Net profit has tripled over five years. From ₹730 Cr in FY21 to a projected ₹1,080 Cr in FY25E, net profit has grown at a CAGR of approximately 10.2%. The compound effect of volume growth, operating leverage, and disciplined capital allocation is visible in the bottom line.

EPS has scaled from ₹57.4 to ₹85.0. The face value of the company is ₹2.0 per share, and the equity base has remained relatively stable, so EPS growth mirrors net profit growth. The current LTP of ₹3,479.70 against an FY25E EPS of ₹85.0 implies a forward P/E of roughly 40.9x, which is below the trailing 48.5x and reflects expected earnings momentum.

Return on equity has compressed but remains healthy. ROE peaked at 23.2% in FY22 and has since moderated to 17.0%, the level at which the company is currently trading. The compression is largely a function of a higher equity base (from retained earnings and modest dilution) rather than a deterioration in operating performance. A 17% ROE is still well above the cost of equity for an Indian industrial company, and the company is creating meaningful economic value.

Balance sheet remains conservative. Supreme Industries has typically operated with a net debt to equity ratio of less than 0.3x, with most of the working capital funded by internal accruals. The company has not relied heavily on external borrowings, and interest coverage has been comfortably above 10x in every year of our analysis window.

Section 4: Industry & Competition — A Four-Way Oligopoly with Supreme Quietly Out in Front

The Indian plastic piping and building products industry is large, fragmented at the lower end, and consolidating at the organised end. Industry estimates peg the total addressable market for plastic pipes in India at roughly ₹60,000–₹70,000 Cr in FY25, growing at a CAGR of 10–12% driven by plumbing replacement, agricultural micro-irrigation, real estate construction, and government-led water supply and sanitation schemes. The organised segment accounts for about 55–60% of this market, with the rest still in the hands of regional unorganised players. The shift from metal to plastic pipes — particularly in plumbing, drainage, and agricultural applications — remains a multi-decade tailwind that should continue to drive volume growth for the organised players.

Supreme Industries competes primarily with four listed peers: Astral Ltd (ASTRAL), Finolex Industries (FINPIPE), Cera Sanitaryware (CERA), and Prince Pipes and Fittings (PRINCEPIPE). While Cera is more of a sanitaryware and bath fittings play, we include it in the comparison because of the cross-over in distribution and the building products adjacencies. The peer table below presents a 5-year-average comparison of key operating and valuation metrics.

Supreme Industries is the largest in absolute revenue scale, surpassing even Astral, the highest-multiple peer, by roughly ₹2,750 Cr in FY25E revenue. This scale advantage translates into better fixed-cost absorption, stronger bargaining power with resin suppliers, and a more efficient distribution network.

Astral is the most premium-priced peer, with a P/E of 65.0x and a P/B of 11.5x. Astral has historically been a faster grower (revenue CAGR of 20%+ over the past five years) and commands a strong brand in the adhesives and bath fittings adjacencies. However, Supreme's superior scale and consistent margin profile make the relative valuation more attractive.

Finolex Industries is the value play in the peer set, with a P/E of 20.0x and a P/B of 2.5x. Finolex has struggled with margin compression in recent years and has a more limited product portfolio concentrated in PVC pipes and PVC resin. The lower ROE of 12.0% reflects this narrower positioning.

Prince Pipes and Fittings is a direct competitor in the plastic piping space with a similar product portfolio but lower profitability. Its OPM of 11.5% and NPM of 6.5% highlight the company's struggle to match Supreme's operational efficiency. Prince Pipes trades at a P/E of 30.0x, reflecting some growth optionality but not the brand or scale moat of Supreme.

Cera Sanitaryware is a building products peer with a strong franchise in ceramic sanitaryware, faucets, and tiles. Its 17.0% OPM and 21.0% ROE are impressive, but the company operates in a different sub-segment. We include Cera to show the broader building products peer set, not as a direct piping competitor.

Industry tailwinds are durable. Three macro tailwinds support the industry:

1. Housing for All and PMAY — The central government's push for affordable housing continues to drive demand for plumbing and drainage pipes. The 2024–2030 pipeline of new housing construction in India is estimated at over 100 million units, with plastic pipes being the preferred material for plumbing in 80%+ of new constructions.
2. Micro-irrigation and Jal Jeevan Mission — Government schemes to expand piped water supply to rural households and improve agricultural water efficiency are large demand drivers. The Jal Jeevan Mission alone has connected over 150 million rural households to tap water connections, each requiring substantial piping infrastructure.
3. Real estate and commercial construction — The post-COVID recovery in residential and commercial real estate has been uneven but resilient, and Tier-2 and Tier-3 city construction activity remains a meaningful growth driver for plastic pipe demand.

Supreme is the best-positioned player to capture these tailwinds because of its pan-India distribution, product breadth, and balance sheet strength. The company's 30+ plants give it logistical cost advantages in serving remote markets that smaller peers cannot match.

Section 5: DCF Valuation Framework — An Intrinsic Value of ₹4,000–₹4,400 per Share

To value Supreme Industries, we use a discounted cash flow (DCF) framework that captures the long-term compounding nature of the business. The key inputs are: revenue growth rate, operating margin, capex intensity, working capital intensity, cost of capital, and terminal growth rate. We have stress-tested the model under three scenarios — base, bull, and bear — to give investors a range of intrinsic values.

Base Case Assumptions:

• Revenue CAGR (FY25–FY30E): 11.0% — slightly above the 5-year historical CAGR, reflecting capacity additions and market share gains.
• Operating Margin (FY25–FY30E average): 16.5% — in line with the 5-year average.
• Effective Tax Rate: 25.0% — consistent with the corporate tax rate applicable to the company.
• Capex as % of Revenue: 4.5% — to support 11% revenue growth.
• Working Capital as % of Revenue: 20.0% — consistent with historical norms.
• Cost of Equity (Ke): 12.0% — using a CAPM framework with a 6.5% risk-free rate, 5.5% equity risk premium, and a beta of 1.0.
• Terminal Growth Rate (g): 5.5% — slightly below India's nominal GDP growth, reflecting mature market dynamics in the long run.

Base Case DCF Output:

The base case DCF yields an intrinsic value of ₹4,070 per share, which is 16.9% above the CMP of ₹3,479.70, suggesting that the market is currently undervaluing the business by roughly one-fifth. The implied forward P/E at the intrinsic value is 47.9x the FY25E EPS of ₹85.0, which is broadly in line with the current trailing P/E of 48.5x, indicating that the valuation is supported by earnings growth rather than multiple expansion.

Bull Case Assumptions:

• Revenue CAGR (FY25–FY30E): 14.0% — faster volume growth, market share gains from unorganised players.
• Operating Margin: 17.5% — premium mix, better pricing power.
• Terminal Growth Rate: 6.0%.
• Cost of Equity: 11.5%.

Bull Case DCF Output:

Bear Case Assumptions:

• Revenue CAGR (FY25–FY30E): 7.0% — prolonged real estate slowdown, resin price spikes.
• Operating Margin: 14.0% — margin compression from competition.
• Terminal Growth Rate: 4.0%.
• Cost of Equity: 13.0%.

Bear Case DCF Output:

Valuation Summary:

Cross-Check: Relative Valuation. At a CMP of ₹3,479.70 and an FY25E EPS of ₹85.0, the forward P/E is 40.9x. The 5-year average trailing P/E for Supreme has been approximately 45x, so the current valuation is actually slightly below the historical mean. Peer comparison shows that Astral trades at 65.0x P/E and Cera at 42.0x, while Finolex trades at a depressed 20.0x. A reasonable target multiple for Supreme, given its scale and consistency, would be 48–52x trailing P/E, which translates to a target price range of ₹3,440–₹3,730 based on trailing EPS of ₹71.75, and a forward P/E of 42–46x based on FY25E EPS of ₹85.0, which gives ₹3,570–₹3,910. We anchor our 12-month price target at ₹4,000–₹4,200, blending the DCF base case and the relative valuation cross-check.

Section 6: Shareholding Pattern — Taparia Family Stewardship, Institutional Conviction

Supreme Industries has a stable, well-distributed shareholding structure that combines the long-term stewardship of the Taparia family with the validation of large institutional investors. The detailed pattern is as follows:

The Taparia family's 47.5% holding is the cornerstone of the investment thesis. The family has been involved with the company for over 75 years and has consistently demonstrated a long-term, capital-allocation-friendly mindset. The family's holding has not been diluted by aggressive equity issuance; on the contrary, the share of family holdings has actually increased slightly in recent years through open market purchases, signaling strong insider conviction at current price levels.

Foreign institutional investors hold 17.0%, which is a healthy level indicating continued global investor interest in India's plastics and building products story. Large FIIs tend to be long-only investors in the plastics space, and we view their holding as a quality endorsement.

Domestic institutional investors hold 14.0%, with mutual funds like SBI Mutual Fund, HDFC Mutual Fund, and ICICI Prudential Mutual Fund among the larger holders. The DII holding has been gradually increasing over the years, reflecting the domestic mutual fund industry's growing comfort with the stock.

Public and retail shareholders account for 21.5%, providing reasonable float and liquidity. The average daily traded value on NSE and BSE combined is roughly ₹40–₹60 Cr, which is adequate for most institutional buyers.

There has been no major pledged share issue, and the company has not announced any dilutive equity issuance plans. The next major event in the shareholding calendar is the Supreme Industries 80th anniversary in 2025 (incorporated 1942 — though listed in 1969), which we expect to be a positive catalyst for investor engagement.

Section 7: Key Risks — Five Tail Risks Investors Should Not Ignore

No equity research article is complete without a frank discussion of risks. While we are constructive on Supreme Industries' long-term trajectory, we believe the following risks could materially impact the stock's near-term price action and the company's earnings power.

1. PVC Resin Price Volatility (HIGH RISK). The single largest variable cost for Supreme Industries is PVC resin, which is a petrochemical derivative. PVC prices can swing 30–50% in a calendar year based on global crude oil prices, Chinese demand, and supply-side disruptions. While Supreme has demonstrated the ability to pass through resin costs with a one-quarter lag, sharp moves can compress margins in the short term and trigger inventory write-downs. A sustained spike in PVC prices to ₹120+/kg could push OPM below 14% for two to three quarters, even with pricing pass-through.

2. Real Estate Cycle Slowdown (MEDIUM-HIGH RISK). A significant portion of Supreme's piping revenue is tied to residential and commercial real estate construction. A prolonged slowdown in the real estate cycle — driven by high interest rates, weak buyer sentiment, or regulatory tightening — could reduce piping demand by 10–15% for an extended period. India's Tier-1 city residential market has been particularly weak in 2024, and any deepening of this weakness would impact Supreme's volumes in the southern and western regions.

3. Competition from Astral and Regional Players (MEDIUM RISK). Astral Ltd has been gaining market share in the premium piping segment, particularly in CPVC and bath fittings. Regional unorganised players continue to compete aggressively on price in lower-tier markets. If Astral maintains its 20%+ growth rate and Supreme's growth slips below 8%, the relative valuation gap could widen and pressure the multiple. The current 48.5x P/E leaves little room for execution missteps.

4. Regulatory and Environmental Risks (MEDIUM RISK). Plastic products are under increasing regulatory scrutiny globally, and India is no exception. The Plastic Waste Management Rules and extended producer responsibility (EPR) norms impose compliance costs on plastic processors. While Supreme has been proactive in recycling and waste management, future regulations on single-use plastics, microplastics, or chemical additives could impact the product mix. The Supreme Eco division is the company's effort to get ahead of this risk.

5. Working Capital and Cash Flow Risks (LOW-MEDIUM RISK). Supreme's business is working-capital intensive, with significant receivables and inventory. While the company has managed working capital prudently historically, a sudden demand shock could lead to inventory pile-ups and receivable stretching. The company's net debt to equity of <0.3x provides a buffer, but a sustained downturn could compress free cash flow by 30–40% and constrain capacity expansion plans.

6. Promoter Concentration and Key Person Risk (LOW RISK). The Taparia family's 47.5% stake and their direct involvement in operations is a positive in the long term, but it does mean that succession planning is critical. The next generation of the Taparia family is already in leadership positions, and we view this risk as low. However, any unexpected event involving the senior family members could create short-term uncertainty.

7. Currency and Import Risk (LOW RISK). Supreme imports certain specialty resins and additives, and a sharp depreciation of the rupee could raise input costs. However, since the majority of raw materials are sourced domestically, this is a low-magnitude risk.

8. Capacity Utilisation and Ramp-Up Risk (LOW-MEDIUM RISK). The company has been commissioning new plants in Gujarat, Telangana, Tamil Nadu, and Assam during FY24–FY25. Any delay in stabilisation or lower-than-expected demand from the new plant catchment areas could pressure short-term returns on incremental capex.

Section 8: What This Means for Investors — A Compounder Worth Holding Through Cycles

For long-term investors, Supreme Industries represents a textbook example of a compounder that rewards patience and punishes impatience. The company does not generate the kind of hyperbolic, multi-bagger returns that grab headlines. Instead, it delivers steady, predictable, double-digit revenue growth, 16% operating margins, 12% net margins, and 17% ROE — year after year, through commodity cycles, through real estate downturns, and through regulatory shifts.

The fundamental case is straightforward. India's plastic piping and building products market is a ₹60,000+ Cr opportunity that is consolidating in favour of organised players. Supreme is the largest, most diversified, and most operationally efficient player in this market, with 30+ plants, a pan-India distribution network of 3,500+ outlets, and 75+ years of compounding history. The market is rewarding this consistency with a trailing P/E of 48.5x and a forward P/E of 40.9x, both of which are above the broader market average but reasonable relative to the growth and return profile.

The valuation is balanced. Our base case DCF suggests an intrinsic value of ₹4,070, providing a 16.9% upside from the CMP of ₹3,479.70. The bull case implies +40.3% upside, while the bear case implies (16.4%) downside. The risk-reward ratio is therefore approximately 2.5:1 on a probability-weighted basis (assuming equal weighting of scenarios), which is favourable for a long-term investor.

Position sizing and entry strategy. For investors building a new position, we would recommend a staggered entry over 2–3 months, given the ₹2,500–₹4,500 52-week range. The current ₹3,400–₹3,500 zone is a reasonable entry point, with additional buying opportunity if the stock corrects to the ₹3,000–₹3,200 zone on any broad market weakness. For investors with existing positions, we recommend holding through the cycle and adding on weakness.

Catalysts to watch over the next 12 months. Several potential catalysts could drive a re-rating:

1. Q3 FY25 and Q4 FY25 earnings — Continued margin recovery to 16.5%+ OPM would confirm the input cost cycle is behind.
2. Capacity commissioning announcements — New plants in Gujarat and Telangana reaching full utilisation.
3. Jal Jeevan Mission updates — Government order flows for rural water supply schemes.
4. Real estate cycle stabilisation — Any pickup in Tier-1 residential launches would boost demand.
5. Strategic announcements — Possible new product launches in adjacent building products categories, such as water storage, bath fittings, or adhesives.
6. Capital allocation announcements — Higher dividend payouts, share buybacks, or strategic acquisitions.

What could change our view. We would turn cautious on Supreme Industries if:

• OPM slips below 14% for two consecutive quarters without a clear resin cost explanation.
• Revenue growth falls below 5% YoY for two consecutive quarters, indicating real demand weakness.
• Promoter shareholding drops by more than 3% in any quarter, indicating insider disenchantment.
• Any major accounting or governance issue emerges.
• A disruptive new entrant (e.g., a Chinese or global building products major) takes meaningful Indian market share.

The bottom line. Supreme Industries is a quality compounder that has historically delivered 15%+ annualised total returns over multi-year periods. At a CMP of ₹3,479.70 and a market cap of ₹44,201.54 Cr, the stock is not cheap by traditional metrics, but it is reasonably priced for a high-quality industrial franchise with a long runway. We initiate coverage with a HOLD-to-ADD rating for existing investors and a BUY-on-weakness stance for new investors, with a 12-month price target of ₹4,000–₹4,200.

Final word. In a market obsessed with the next 10-bagger, Supreme Industries is a reminder that the most reliable path to wealth creation is owning great businesses at reasonable prices and holding them for long periods. The Taparia family built this company over 75 years; the next 5–10 years should see the company's earnings power expand by another 60–100%, which is exactly the kind of compounding journey that patient capital should be a part of.

Section 9: Disclaimer