SUPREMEIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | SUPREMEIND | Market Cap | 44,920 Cr. | Current Price | 3,540 ₹ | High / Low | 4,740 ₹ |
| Stock P/E | 49.3 | Book Value | 429 ₹ | Dividend Yield | 1.01 % | ROCE | 23.2 % |
| ROE | 17.5 % | Face Value | 2.00 ₹ | DMA 50 | 3,656 ₹ | DMA 200 | 3,805 ₹ |
| Chg in FII Hold | -2.11 % | Chg in DII Hold | 2.02 % | PAT Qtr | 382 Cr. | PAT Prev Qtr | 158 Cr. |
| RSI | 45.1 | MACD | -63.3 | Volume | 1,81,516 | Avg Vol 1Wk | 1,60,149 |
| Low price | 3,182 ₹ | High price | 4,740 ₹ | PEG Ratio | 7.11 | Debt to equity | 0.02 |
| 52w Index | 23.0 % | Qtr Profit Var | 46.1 % | EPS | 71.7 ₹ | Industry PE | 21.8 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹382 Cr. vs ₹158 Cr. previous quarter, showing strong growth of 46.1%.
- Margins: ROE at 17.5% and ROCE at 23.2% reflect excellent efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.02 indicates negligible leverage, very healthy balance sheet.
- Cash Flow: Stable due to consistent earnings and conservative debt management.
💹 Valuation Indicators
- P/E Ratio: 49.3 vs Industry PE of 21.8 — trades at a significant premium, suggesting overvaluation.
- P/B Ratio: Price ₹3,540 vs Book Value ₹429 → ~8.25x, expensive relative to assets.
- PEG Ratio: 7.11 indicates stretched valuations relative to growth.
- Intrinsic Value: Current price appears overvalued compared to fundamentals.
🏭 Business Model & Advantage
Supreme Industries is a leader in plastic products, including packaging, furniture, and industrial solutions. Its competitive advantage lies in scale, diversified product portfolio, and strong distribution network. Low debt and high efficiency strengthen its financial health, though valuations are demanding.
📈 Technicals & Entry Zone
- RSI at 45.1 indicates neutral momentum.
- MACD negative (-63.3) suggests short-term weakness.
- Entry Zone: Attractive accumulation around ₹3,200–₹3,400 range.
- Long-term Holding: Suitable for investors seeking exposure to industrial and consumer plastics, but valuation risks must be considered.
✅ Positive
- Quarterly PAT growth of 46.1%.
- Strong ROCE (23.2%) and ROE (17.5%).
- Negligible debt-to-equity ratio (0.02).
⚠️ Limitation
- P/E ratio (49.3) significantly above industry average.
- P/B ratio (8.25x) signals overvaluation.
- PEG ratio (7.11) indicates stretched valuations.
📰 Company Negative News
- FII holdings declined (-2.11%).
- Valuation multiples significantly above industry norms.
🌟 Company Positive News
- DII holdings increased (+2.02%).
- Quarterly PAT improved from ₹158 Cr. to ₹382 Cr.
- Strong brand presence and diversified product portfolio.
🏭 Industry
Plastics and industrial products industry PE at 21.8 reflects moderate valuations. Demand is driven by packaging, infrastructure, and consumer goods. Regulatory pressures on plastics and raw material costs remain key risks.
🔎 Conclusion
Supreme Industries demonstrates strong profitability, efficiency, and negligible debt, but current valuations are stretched with high P/E, P/B, and PEG ratios. Long-term investors may consider accumulating in the ₹3,200–₹3,400 range, aligning with industry growth while being cautious of valuation risks.
For deeper insights, you could explore a peer comparison or an industry outlook to complement this analysis.